Wendy’s/Arby’s Group, the third largest quick-service restaurant group in the US, has announced it has agreed to sell most of its stake in its struggling Arby’s restaurant chain to private equity firm Roark Capital Group, for $130m (£79.7m). As part of the deal Roark, which already operates the Auntie Anne’s and Cinnebon restaurant chains, will also assume around $190m in debt. Wendy’s/Arby’s will retain a 18.5% stake in Arby’s, which operates c.3,600 sites across the US. The company’s remaining stake in Arby’s is valued at $30m, while it will also receive an income tax benefit of about $80m from the deal over the next few years, which gives the transaction a total value of around $430m. Roland Smith, Wendy’s/Arby’s chief executive, said: “This transaction provides substantial value to our stockholders, as it is expected to be accretive to earnings, deleverage the balance sheet and allow us to devote our full attention and resources on the exciting growth opportunities we have at Wendy’s.” Wendy's/Arby's intends to reinvest some of the money from the deal toward further international expansion and menu development of its Wendy’s chain.