Meritage Hospitality Group, a major Wendy’s franchisee, filed for Chapter 11 on Sept. 18, citing six straight quarters of same-store sales declines, CNBC reported. Meritage said store-level EBITDA fell 48% in 2025; Forbes said the filing complicates a potential Wendy’s takeover.
Meritage operates 314 Wendy’s restaurants in 15 states and plans to keep them open while reducing debt and evaluating strategic alternatives. Wendy’s reported U.S. same-restaurant sales declines of 7.8% and 7.0% in the first two quarters of 2026.
Meritage deferred about $24.9 million in franchise fees, making a Wendy’s affiliate its largest unsecured creditor; bankruptcy proceedings may prevent full recovery. Wendy’s also has about $2.8 billion in securitized debt. Reuters reported that Trian, which retained roughly 16% of Wendy’s, no longer plans an immediate offer. Forbes estimated Wendy’s would retain about $50 million annually after cutting its quarterly dividend from $0.14 to $0.07 per share.
