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Wendy's franchisee files for Chapter 11 bankruptcy protection

CNBC • September 18, 2026 • business

Key Points:

Meritage Hospitality, a major Wendy's franchisee operating 314 Wendy's locations, filed for Chapter 11 bankruptcy protection due to financial struggles linked to declining same-store sales and rising costs.
Wendy's has faced six consecutive quarters of same-store sales declines, leadership instability, and a significant drop in stock value, which has negatively impacted Meritage's financial position.
Meritage reported a 48% drop in store-level earnings before interest, taxes, depreciation, and amortization in 2025, citing rising beef prices and increased discounting as key factors.
The bankruptcy filing aims to strengthen Meritage's balance sheet, with plans to keep all restaurants operational during restructuring.
Meritage's assets and liabilities are both estimated between $10 million and $50 million, with Wendy's franchise business listed as the top unsecured creditor, claiming $24.9 million in deferred franchise fees.

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