Subway is shrinking again – and the reason matters beyond sandwiches.

The chain closed a net 729 U.S. locations in 2025 – its steepest drop in years – according to a new franchise filing reviewed by FOX Business. The total number of restaurants has now fallen to fewer than 19,000, down from more than 22,000 just a few years ago.

Subway opened 499 locations during the year, but closures outpaced new units, resulting in an overall decline. 

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Subway closed more than 700 locations in 2025. (Scott Olson/Getty Images)

The filing also shows that around 800 locations were temporarily closed as of Dec. 31, 2025, with the company expecting many of those stores to reopen. More than half of the locations opened last year were previously closed units.

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Total franchise revenue declined over 6% in 2025. (Scott Olson/Getty Images)

Despite the shrinking footprint, Subway reported $688 million in net income in 2025, up from $397 million the previous year and $15 million in 2023, according to the filing.

At the same time, total franchise revenue declined more than 6% to $767 million.

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Subway has about 19,000 in operation. (Kevin Carter/Getty Images)

Industry data shows Subway locations generate about $500,000 in annual sales on average, significantly lower than some competing sandwich chains, according to Circana’s 2026 restaurant ranking.

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Subway said it has signed 93 franchise agreements and expects about 100 new locations to open in the coming year.