Key facts
- Meritage Hospitality Group, a large Wendy's franchisee, filed for Chapter 11 bankruptcy on September 17.
- The company operates 314 Wendy's locations in 15 states.
- Reasons cited for the filing include an 11.3% decrease in same-store sales in late 2025 and record U.S. beef prices.
- The franchisee's average cost of beef increased by 18.9% year-over-year.
- Meritage Hospitality Group plans to restructure, which may involve closing or selling underperforming locations.
- The company owes Wendy's International nearly $25 million.
Meritage Hospitality Group, one of Wendy's largest franchisees, has filed for Chapter 11 bankruptcy protection due to profitability issues and rising beef costs. The company, which operates 314 Wendy's locations across 15 states, filed its petition on September 17 in the U.S. Bankruptcy Court for the Western District of Michigan. In court documents, Meritage cited an 11.3% decline in same-store sales during the final quarter of 2025, unusual winter weather impacting sales, and reduced effectiveness of Wendy's brand marketing as contributing factors. Record U.S. beef prices, driven by historically low herd levels, a shutdown of Mexican border beef imports due to disease, and tariffs on beef from South America, led to an 18.9% increase in the company's average cost of beef compared to the previous year. The company owes Wendy's International nearly $25 million and has assets and liabilities ranging from $10 million to $50 million. Meritage Hospitality Group plans to restructure, which could involve closing or selling underperforming locations, while aiming to preserve jobs and restaurant operations. The company also asked for permission to continue honoring Wendy's gift cards and loyalty programs.