On Tuesday, Jimmy Johns announced plans to merge with the iconic Jimmy John’s brand in order to take on Apple.
The announcement came after the retail giant reportedly paid $2.3 billion for the company in February.
Apple’s announcement follows news of Jimmy Johns’ plans to launch an online store as part of a broader expansion into the online grocery space.
Jimmy Johns shares jumped 7.8 percent after the news of the new deal was announced.
On Tuesday, Apple CEO Tim Cook told investors that the company would continue to focus on the health care space as part, “of the business of innovation.”
The announcement comes after a report from Fortune magazine earlier this month that predicted Jimmy John could become the third largest food chain in the world by 2020.
Apple has also been rumored to be looking at launching a new Apple Watch device.