Subway struggles to keep up with fast-casual competition

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Subway Struggles to Keep Up With Fast-Casual Competition

Subway's revenue dipped for a second straight year in 2015, signaling the sandwich chain might be starting to feel the pressure from fast-casual restaurants.

Subway's revenue in 2015 was 4.3 percent lower than in 2014, bringing it down to $1.1 billion.

While the eatery opened 911 new stores in 2015, it closed 877. So it only added 34 stores. The company says opening new stores is currently on the back burner as it focuses on making the ones it has more profitable.

See images of the major restaurant chain:

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Subway struggles to keep up with fast-casual competition
US sandwich maker Subway co-founder and chairman for the world, the self-made billionaire Fred DeLuca, poses with a sandwich in a Parisian Subway restaurant on June 17, 2011 prior to attend a meeting with the press as part of the 10th anniversary of Subway France. Subway has seen its number of restaurants balloon to 33,749 across the globe as of January 1, making it the world's largest fast food chain ahead of McDonald, with 32,737 restaurants, as reported on March 11, 2011. AFP PHOTO ERIC PIERMONT (Photo credit should read ERIC PIERMONT/AFP/Getty Images)
CHICAGO, IL - DECEMBER 29: A new Turkey and Bacon Melt Wrap is seen December 29, 2003 in Chicago. Subway restaurants today started to offer two Atkins Nutritionals, Inc.-endorsed low-carbohydrate wraps. The Turkey and Bacon Melt Wrap with Monterey cheddar cheese and the Chicken Bacon Ranch Wrap with Swiss cheese. Both Atkins-Friendly Wraps are available in the U.S. and Canada and have 11 grams Net Carbs or less. The wrap itself, which is made with wheat gluten, cornstarch, oat, sesame flour and soy protein, has only 5 grams Net Carbs. Subway Restaurants is the first quick serve restaurant to partner with Atkins Nutritionals Inc. (Photo by Tim Boyle/Getty Images)
CHICAGO, IL - DECEMBER 29: A new Turkey and Bacon Melt Wrap is seen December 29, 2003 in Chicago. Subway restaurants today started to offer two Atkins Nutritionals, Inc.-endorsed low-carbohydrate wraps. The Turkey and Bacon Melt Wrap with Monterey cheddar cheese and the Chicken Bacon Ranch Wrap with Swiss cheese. Both Atkins-Friendly Wraps are available in the U.S. and Canada and have 11 grams Net Carbs or less. The wrap itself, which is made with wheat gluten, cornstarch, oat, sesame flour and soy protein, has only 5 grams Net Carbs. Subway Restaurants is the first quick serve restaurant to partner with Atkins Nutritionals Inc. (Photo by Tim Boyle/Getty Images)
CHICAGO, IL - DECEMBER 29: Subway restaurant store owner Shirish Dave prepares a new Chicken Bacon Ranch Wrap December 29, 2003 in Chicago. Subway restaurants today started to offer two Atkins Nutritionals, Inc.-endorsed low-carbohydrate wraps. The Turkey and Bacon Melt Wrap with Monterey cheddar cheese and the Chicken Bacon Ranch Wrap with Swiss cheese. Both Atkins-Friendly Wraps are available in the U.S. and Canada and have 11 grams Net Carbs or less. The wrap itself, which is made with wheat gluten, cornstarch, oat, sesame flour and soy protein, has only 5 grams Net Carbs. Subway Restaurants is the first quick serve restaurant to partner with Atkins Nutritionals Inc. (Photo by Tim Boyle/Getty Images)
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Analysts for Bloomberg blamed Subway's hardships on the rise of fast-casual dining options like Panera Bread.

On top of that, the company found itself in the middle of a public relations nightmare last year after longtime Subway spokesman Jared Fogle pleaded guilty to child pornography charges and was sentenced to 15 years in prison.

RELATED: See images of the Jared Fogle scandal

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INDIANAPOLIS, IN - AUGUST 19: Senior Litigation Counsel, Steven DeBrota, explains the charges against Subway Pitchman, Jared Fogle, during a press conference on August 19, 2015 at the United States Attorneys Office in Indianapolis, Indiana. Fogle was part of a Federal Investigation which included a raid of his home in July 2015. (Photo by Ron Hoskins/Getty Images)
INDIANAPOLIS, IN - AUGUST 19: Jared Fogle (R) gets into a car in front of the courthouse on August 19, 2015 in Indianapolis, Indiana. Fogle was part of a Federal Investigation which included a raid of his home in July 2015. (Photo by Joey Foley/Getty Images)
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