Owner of hundreds of Wendy’s files for bankruptcy – Business News
One of Wendy’s largest franchisees has filed for Chapter 11 bankruptcy protections because it struggles to win over prospects – falling behind within the burger battle towards McDonald’s and Burger King.
Meritage Hospitality, which operates 314 Wendy’s eating places, one Bojangles and 5 independently branded eating places throughout 15 states, stated Thursday that it’s aiming to strengthen its stability sheet.
“Because the substantial majority of Meritage’s restaurant portfolio operates under Wendy’s brand, those system-wide pressures have had a significant impact on the Company’s financial position,” Meritage stated in a assertion.
A significant Wendy’s franchisee has filed for bankruptcy protections. Bloomberg by way of Getty Images
Wendy’s has reported same-store gross sales declines for six straight quarters, struggling as diners targeted on worth persist with McDonald’s or flee to Burger King, which has been investing in improved eats and higher customer support.
The fast-food chain was formally dethroned as America’s No. 2 burger chain by Burger King in August, ending its six-year run simply behind McDonald’s.
During an investor convention in June, Meritage CEO Bob Schermer Jr. stated store-level earnings earlier than curiosity, taxes, depreciation and amortization had fallen 48% in 2025. He added that hovering beef costs and an increase in store reductions had weighed on income.
The company has breezed via a speedy succession of leaders, rotating via three new CEOs since longtime chief Todd Penegor stepped down in 2024 – tumult that has stalled its turnaround efforts.
Wendy’s has reported same-store gross sales declines for six straight quarters. SOPA Images/LightRocket by way of Getty Images
Wendy’s present CEO Bob Wright stated in August that the burger chain is “clearly not performing at our potential,” citing “traffic, our value proposition and franchisee economics.” He introduced a new five-point turnaround plan.
The company’s stock has misplaced two-thirds of its worth over the previous three years, and is down more than 16% up to now this yr.
Meritage stated it plans to keep its eating places open during the restructuring course of and to proceed paying its 9,000 staff wages and advantages.
The franchisee estimated its belongings and liabilities are every valued within the $10 million to $50 million vary.
Wendy’s franchise business, Quality Is Our Recipe LLC, is Meritage’s prime unsecured creditor, with a declare of $24.9 million for deferred charges.
Most not too long ago, the burger chain has tried to claw back prospects from rivals by interesting to their nostalgia, saying plans to re-launch its classic vivid yellow packaging in shops beginning Sept. 28.
