Wendy's Franchisee Meritage Hospitality Files For Chapter 11 Bankruptcy

(RTTNews) - Meritage Hospitality Group (MHGUP), one of Wendy's (WEN) largest U.S. franchisees, has filed for voluntary Chapter 11 bankruptcy protection as the restaurant operator faces declining sales, higher costs and weaker profitability.

The Grand Rapids, Michigan-based company operates 314 Wendy's restaurants across 15 states, along with one Bojangles location and five independently branded restaurants.

Meritage said the filing is intended to strengthen its balance sheet while allowing its restaurants to remain open during the restructuring.

The company cited weak customer traffic, rising beef costs and increased discounting as factors that pressured its finances. Store-level earnings before interest, taxes, depreciation and amortisation fell 48% in 2025.

Wendy's has reported six consecutive quarters of same-store sales declines as consumers have become more focused on value. Meritage listed Wendy's franchising business as its largest unsecured creditor, with a $24.9 million claim for deferred franchise fees.