Subway experienced a significant contraction in its U.S. footprint in 2025, closing a net 729 locations, marking its steepest annual decline in recent years [1]. The total number of Subway restaurants in the U.S. has now dropped to fewer than 19,000, compared to over 22,000 just a few years ago [1]. While the company opened 499 new locations during the year, closures outpaced openings, resulting in the overall net loss [1]. Notably, more than half of the new locations were previously closed units that reopened [1].
As of December 31, 2025, approximately 800 Subway locations were temporarily closed, with the company expressing expectations that many of these stores will reopen [1]. Despite the shrinking number of stores, Subway reported a substantial increase in net income, reaching $688 million in 2025, up from $397 million in 2024 and $15 million in 2023 [1]. However, total franchise revenue declined by more than 6% to $767 million during the same period [1].
Industry data from Circana’s 2026 restaurant ranking indicates that the average Subway location generates about $500,000 in annual sales, which is significantly lower than some competing sandwich chains [1]. Looking ahead, Subway has signed 93 new franchise agreements and anticipates opening around 100 new locations in the coming year [1].
CONCLUSION
Subway's U.S. store count continues to decline sharply, even as net income rises and the company prepares for modest new growth. The chain faces ongoing challenges with its franchise model and lower average unit sales compared to competitors, signaling continued pressure on its market position.