Meritage Hospitality Group Files Chapter 11 Bankruptcy Amid Wendy's Struggles
Meritage Hospitality Group, a franchise operator with over 300 Wendy’s locations and other outlets across the U.S., has filed for Chapter 11 bankruptcy. The company cited rising beef costs, ineffective brand marketing by previous leadership at Wendy’s Co., and operational challenges as key factors in its financial decline. Meritage reported $651 million in liabilities against $725.9 million in assets but assured employees would continue to be paid and restaurants will remain open during restructuring. The company has already closed 60 underperforming locations, with more closures or sales expected as the bankruptcy process continues. Wendy’s Co., which is involved in a franchise termination dispute seeking $147 million from Meritage—$27.3 million in unpaid royalties and fees and $119 million in operations fees—is also experiencing its own struggles, including six consecutive quarters of declining same-store sales. Meritage CEO Bob Schermer Jr. noted that store-level EBITDA dropped 48% in 2025 due to multiple pressures on margins. The bankruptcy filing highlights broader challenges facing the fast-food sector and Wendy’s brand specifically.
Topics: bankruptcy beef economics franchising Wendy's