Meritage Hospitality, one of Wendy’s largest US franchisees, has filed for Chapter 11 bankruptcy protection as the burger chain faces prolonged pressure from falling sales and weaker demand for its value offering.
The company operates 314 Wendy’s restaurants across 15 states, alongside one Bojangle’s site and five independently branded stores. It said the restructuring was intended to strengthen its balance sheet and that its restaurants would continue trading throughout the process.
Meritage said the pressures affecting Wendy’s had significantly damaged its financial position because most of its restaurants operate under the brand. Wendy’s has recorded six consecutive quarters of declining same-store sales, while frequent changes in its chief executives have produced a succession of turnaround strategies.
At an investor conference in June, Meritage chief executive Bob Schermer said store-level earnings before interest, taxes, depreciation and amortisation had fallen by 48% in 2025. Higher beef costs and increased discounting also reduced profits at the franchisee.
Wendy’s shares have lost two-thirds of their value over the past three years, according to the information provided.
A filing with the Bankruptcy Court for the Western District of Michigan estimated Meritage’s assets and liabilities at between $10 million and $50 million each. Quality Is Our Recipe LLC, the legal entity for Wendy’s franchise business, was listed as the company’s largest unsecured creditor, with a $24.9 million claim for deferred franchise fees.
