Wendy's Franchisee Files Chapter 11 Bankruptcy Amid Ongoing Sales Declines
Meritage Hospitality Group, one of Wendy’s largest U.S. franchisees operating 314 restaurants across 15 states, has filed for Chapter 11 bankruptcy protection. The move comes as the burger chain continues to face six consecutive quarters of same-store sales declines and a series of leadership changes that have hindered its turnaround efforts. Meritage cited system-wide pressures affecting Wendy’s brand as a major factor in its financial struggles, including falling store-level EBITDA by 48% in 2025 due to rising beef costs and increased discounts. The company aims to restructure while continuing operations during the process.
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