Meritage Hospitality Group, a major Wendy’s franchisee, filed for Chapter 11 bankruptcy protection. It operates 314 Wendy’s restaurants across 15 states.
As part of its restructuring, the company is closing 41 underperforming locations across the United States. It had already closed approximately 60 locations since late 2024 amid financial difficulties.
Wendy’s stock fell nearly 4% after the news. The bankruptcy highlights potential pressures within the Wendy’s franchise system. It comes as Wendy’s parent company pursues a turnaround plan under new CEO Bob Wright, focused on improving food quality, value and operations.