Wendy's Franchisee Meritage Files for Chapter 11 Bankruptcy Protection

Meritage Hospitality, a major U.S. franchisee of Wendy's (WEN), filed for Chapter 11 bankruptcy protection on Thursday. This filing occurs amid six consecutive quarters of declining same-store sales for Wendy's. Meritage reported a 48% decrease in store-level earnings before interest, taxes, depreciation and amortization in 2025, largely due to rising beef costs and discounts. The company's assets and liabilities are estimated between $10 million and $50 million, with Wendy's as the largest unsecured creditor at $24.9 million. This situation indicates ongoing financial challenges within the Wendy's franchise system.

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