Subway’s CEO is calling it quits

Subway CEO John Chidsey will retire at the end of 2024, the company said Tuesday, bringing his five-year tenure at the helm of the global restaurant brand to a close.

Carrie Walsh, Subway’s current president of Europe, Middle East, and Africa (EMEA), will be interim CEO while the company searches for a permanent chief executive, Subway said in a statement. She will focus on driving franchisee profitability and innovation.

“Under John’s leadership, Subway has been transformed,” Clay Harmon, a member of Subway’s board, said in a company statement. “His vision and passion have set a high standard that will continue to guide the brand for years to come. Carrie is uniquely qualified to lead Subway through this transition, bringing a blend of expertise in global operations, brand innovation and digital transformation, which will bring continuity and support Subway’s next chapter.”

Chidsey will remain involved as a consultant, supporting Subway’s expansion efforts and international deals. His tenure has been marked by significant growth for Subway, with more than 10,000 new restaurant commitments signed globally. A retail veteran with more than 20 years of experience, Chidsey previously held roles at Yum! Brands (YUM+1.16%) and PepsiCo (PEP-0.52%). He also played a key role in Subway’s $9 billion sale to Roark Capital in 2023.

Subway competitor Jersey Mike’s is also focusing on international growth. Private equity firm Blackstone (BX-0.76%) acquired a majority stake in the sandwich chain this month for approximately $8 billion — a valuation close to Subway’s, despite Jersey Mike’s having only a fraction of the global store count.

Chidney’s retirement comes as the restaurant industry faces significant challenges. Major chains, including Starbucks (SBUX-1.13%) and Red Lobster, have ushered in new chief executives as they grapple with rising costs, changing consumer habits, and fierce competition. Restaurant bankruptcies in 2024 could reach levels reminiscent of the early pandemic-era days of 2020

To combat these headwinds, restaurant chains, including Subway, have ramped up promotions to attract customers. Subway launched a $6.99 footlong meal deal in August to boost sales amid the “value meal wars.” But the promotion fell short of profit expectations, and the company decided to end it earlier than initially planned, a Subway spokesperson confirmed. The deal will be limited to digital orders through Dec. 26, with an additional 20% off coupon available for any sub ordered via the Subway app.