The end is near for the Wendy’s/Arby’s Group Inc. partnership. The company announced today that it’s exploring “strategic alternatives” for the Arby’s brand, including a possible sale. UBS Investment Bank is assisting WAG in the process.

Arby’s, the second largest quick-service sandwich chain in the U.S., has struggled to find solid footing as of late. While sister company Wendy’s has made progress in reducing its operating margins, Arby’s has far to go.

In working toward a rebounding effort, Arby’s initiated a turnaround plan in the spring of 2010 that included a $1 value menu expansion, remodeling efforts and a product innovation program.

At the time of the plan’s announcement, the chain had experienced an 11 percent drop in same-store sales. Although Arby’s has since shown signs of improvement, such as its 3.1 percent increase in company-operated same-store sales in the fourth quarter of 2010, its umbrella company made the decision to narrow its focus to just Wendy’s.

“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,” said Nelson Peltz, chairman of Wendy's/Arby's Group. “Arby’s is a good business, and we are making progress improving its performance. However, 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, and we believe we should focus on the execution of the compelling growth opportunities at Wendy’s.”

According to Reuters, Peltz’s Trian Fund Management LP owns 18.3 percent of Wendy’s/Arby’s shares. Arby’s accounts for 30 percent of WAG’s revenues.

Rumors about unloading Arby’s have been swirling for months despite the recent hires of Hala Moddelmog as president and Diana Petrovich-Tao as chief operating officer to help execute its turnaround plan.

Arby’s Restaurant Group Inc. is based in Atlanta and includes more than 3,500 units. Wendy’s has more than 6,500 restaurants.

“Wendy’s is one of the most attractive growth stories in the quick-service restaurant industry,” said Roland Smith, president and CEO of WAG. “A pure-play Wendy's will enable us to focus all of our energies on growing the Wendy’s brand via new store growth both in North America and international markets, and with accelerated same-store sales through the introduction of new dayparts and core menu innovation.”

Preliminary financial highlights for 4Q10 and a 2011 outlook will be released on Jan. 26. Full 2010 financial results will be shared March 3.

WAG will hold an Investory Day Jan. 27 in New York City, which will include an overview of Wendy’s domestic and global businesses. Presentations will be webcast live.

The impending sale of Arby’s is certainly not an isolated incident in this roller coaster of a year for major QSR chains. In September, Burger King was sold to Brazilian-based 3G Capital and, earlier this week, Yum! Brands announced it was shopping for buyers for its Long John Silver’s and A&W brands.