Do we like them?

Do we like Subway?

Sandwich chain with 35,000+ mostly franchised stores worldwide; based in Miami, US

Our score: 4 out of 10. Not one we'd back: private equity owns it, franchisees have faced repeated labour cases, and its animal welfare commitments look vague. The brand is still huge.

Subway began in 1965 as a single sandwich shop in Connecticut, started by Fred DeLuca and Peter Buck. It grew into a global giant. CNBC reported that sales had been falling for about a decade before the sale, hurt by the $5 footlong deal and by pressure on franchisee profits.

The founding families sold up. After DeLuca died in 2015 and Buck in 2021, Subway went on the market. Atlanta private equity firm Roark Capital reportedly paid around $9.6 billion. Roark also owns Dunkin', Arby's and Jimmy John's through holding companies. Former Burger King executive Jonathan Fitzpatrick is the first CEO hired under Roark.

The worst of the drama is at franchise level. The US Labor Department investigated Bay Area franchises and found workers as young as 14 and 15, withheld tips and unpaid wages. California's Labor Commissioner then opened a probe into seven San Francisco stores over alleged underpayment. Subway says its restaurants are independently owned and must follow the law.

The famous 'fake tuna' lawsuit fizzled out. A judge dismissed it on a legal technicality and made no finding about what's in the tuna. Subway insists it's 100% real. On animal welfare, Subway made chicken pledges. Ethical Consumer still rated it very poorly, saying its commitments were vague and not backed by global specifics.

Why a 4? It's a household name that offers some welfare pledges. But it has a pattern of franchise labour problems, weak transparency, and a private-equity owner. For us, that adds up to below the line.