The Subway sandwich chain is exploring a potential sale

The sandwich giant Subway confirmed Tuesday that it is exploring a potential sale.

A deal could value the chain at more than $10 billion, according to an article last month from the Wall Street Journal, which first reported that the company had hired advisers to explore a sale.

Subway on Tuesday said so JPMorgan He advises the Connecticut-based company and will conduct the sale exploration process. The company did not specify any timing and warned that the process may not lead to a sale.

“The management team remains committed to the future and will continue to execute as part of its multi-year transformation journey, which includes a focus on menu innovation, modernizing restaurants, and improving the overall guest experience,” Subway said in the statement.

Subway, which has more than 37,000 restaurants in more than 100 countries, said earlier this month that same-store sales rose 9.2 percent last year. Subway said same-store sales in North American locations jumped 7.8% in 2022, beating average weekly sales records from a decade ago.

Subway isn’t required to disclose its financial results because it’s privately owned, but it recently shared sales updates as it’s undergoing a turnaround effort.

In a statement issued earlier this month, the company said the company has recorded eight consecutive quarters of sales growth. Digital sales have more than tripled since 2019. The improvements are a stark reversal after years of declining sales.

Subway is also operating in a smaller footprint: The company’s number of locations fell 22% from 2015 to 2021. It plans to reconfigure 3,600 locations in North America and improve franchise profitability this year, CNBC previously reported.

Subway co-founder Peter Buck, who passed away in November 2021, has announced that he has left 50% ownership to the organization, meaning it will soon be part-owned by a charitable foundation. It is unclear if this will affect a potential sale.

CNBC channel Amelia Lucas Contribute to this report.