Arby's, the fast food sandwich chain, may be sold by Wendy’s/Arby’s Group Inc., according to a statement made by the group on Thursday.
"Wendy's/Arby's Group, Inc. … today announced it is exploring strategic alternatives for Arby's Restaurant Group, Inc., including a sale of the brand," it said in a statement.
“We believe the way to maximize shareholder value is to focus all of our management and financial resources on continuing to build the Wendy's brand,” Nelson Peltz, chairman of Wendy's/Arby's Group stated.
Peltz was the main person responsible for the merger of Wendy’s and Arby’s back in 2008.
Both Wendy’s and Arby’s have been hit by the economic downturn. However, Arby’s has been struggling mainly due to the high cost of its sandwiches.
The chain has around 3,700 restaurants and is known for its roast beef sandwiches. Wendy’s has more than 6,500 restaurants in 20 countries.
Peltz noted that Arby’s has been making positive strides in the fourth quarter of 2010, but “despite Arby's positive momentum, the reality is that the Wendy's brand, given its relative size and scope, is the key driver of shareholder return.”
In Thursday trading on the New York Stock Exchange, Wendy’s/Arby’s Group shares (WEN) were up 6.94 percent (31 cents) to $4.78.