Close-up of fast food packaging with Wendy’s logo. Smith/gado Collection | Stock Photos | Getty Images Meritage Hospitality, one of the largest Wendy’s franchises in the U.S., filed for Chapter 11 bankruptcy protection on Thursday. The introduction comes as the burger chain has struggled to win over diners who have increasingly focused on value. For six consecutive quarters, Wendy’s has reported declines in same-store sales. The revolving door of CEOs in recent years has led to confusing turnaround strategies, and the company’s stock has lost two-thirds of its value over the past three years. “Because the vast majority of Meritage’s restaurant portfolio operates under the Wendy’s brand, those system-wide pressures have had a significant impact on the company’s financial position,” Meritage said in a news release announcing the filing. At an investor conference in June, Meritage CEO Bob Schermer Jr. said store-level earnings before interest, taxes, depreciation and amortization had plunged 48% in 2025. Rising beef costs and deeper discounts weighed on franchisee profits. Meritage said it filed for bankruptcy to strengthen its balance sheet and that the company plans to keep its restaurants in business during the restructuring process. Meritage operates 314 Wendy’s restaurants in 15 states, as well as one Bojangles location and five independent brand stores. Meritage estimated its assets are valued between $10 million and $50 million, with liabilities within the same range, according to a filing with the U.S. Bankruptcy Court for the Western District of Michigan. Quality Is Our Recipe LLC, the legal name of Wendy’s franchise business, is listed as its largest unsecured creditor with a claim for $24.9 million in deferred franchise fees. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
