Subway Soon to Pass McDonald's

Subway has only 500 restaurants less than the world's largest fast-food chain, McDonald's. According to AdaAge.com, Subway has 31,771 franchised units worlwide at press time, while McDonald's has 32,158 units.

The Subway chain is expected to outgrow McDonald's soon.

Dennis Lombardi, exec VP-food service at WD partners, said "you need about five or six Subways to equal one McDonald's in terms of sales." The average U.S. McDonald's had about $2.3 million in sales last year; the average Subway made about $445,000, according to Technomic. - AdAge

Subway thinks cities such as Boston, Dunkin' Donuts' home town, is a good target area for growth.

"Subway restaurants have comparatively low start-up costs, and the all-sandwich menu is generally less intimidating to restaurant-industry neophytes. Mr. Fertman [Subway's development v.p.] noted that Subway always racks up franchisee applications in a down economy, when laid-off workers, disenchanted with the corporate world, decide to try their hands restaurant ownership.