The Toronto-Dominion (TD) bank logo is seen outside of a branch in Ottawa, Ontario, Canada, February 14, 2019. REUTERS/Chris Wattie

By Abigail Summerville

(Reuters) -Canada's MTY Food Group, owner of Pinkberry and Cold Stone Creamery, has hired Toronto-Dominion Bank to explore a sale, according to people familiar with the matter, who asked not to be named because the process is confidential.

After Reuters reported the company's plans Monday, MTY's shares surged by more than 13%. It also released a statement confirming it hired a financial adviser to undertake a strategic review and was considering a range of options, "including, but not limited to, a sale of all or part of the company."

It did not name the adviser, and TD Bank did not respond to requests for comment.

Montreal-based MTY, which had a market value of nearly $550 million before the article was published, operates or franchises over 80 restaurant chains across the world, including Pinkberry, Cold Stone Creamery, Wetzel's Pretzels, Papa Murphy's and TacoTime. It has 7,061 locations, most of which are franchises, with 256 company-owned locations.

The quick-service restaurant industry has weakened as cash-strapped consumers cut eating out from their budgets, contributing to a near 25% fall in its share price year-to-date through Friday.

For the third quarter ended August 31, MTY's revenue increased by about 1% year-over-year to $297 million, while its net income attributable to owners fell by about 20% to $27.9 million, or $1.22 per diluted share.

Any deal would likely command a premium to the company's market value, sources said. The steady royalty fees from franchised restaurant chains have attracted private equity buyers in recent years.

MTY Chairman Stanley Ma founded the company in 1979 with just one restaurant location. He served as CEO from 2004 to 2018 and is the company’s largest shareholder with a 13.9% stake, according to LSEG data.

(Reporting by Abigail Summerville in New York; Editing by Dawn Kopecki, Susan Fenton and Jamie Freed)