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Meritage Hospitality Group, one of Wendy's largest franchise operators, has filed for Chapter 11 bankruptcy protection. The company, which runs 314 Wendy's restaurants across 15 states, filed in federal bankruptcy court, citing financial difficulties. Meritage owes Wendy's nearly $25 million and has reported a significant decline in sales.
In the final quarter of 2025, Meritage experienced a more than 11 percent drop in same-store sales, while its average beef costs increased by nearly 19 percent compared to the previous year. These financial strains have led the company to consider restructuring options, including closing or selling underperforming restaurants.
Despite the bankruptcy filing, Meritage is committed to preserving jobs and maintaining operations. The company employs approximately 8,850 people and plans to continue honoring Wendy's gift cards, loyalty programs, and employee benefits during the restructuring process.
Meritage's financial challenges reflect broader economic pressures, including rising costs and changing consumer habits. The company aims to navigate the bankruptcy process while minimizing disruptions to its employees and customers.