{"id":7482,"date":"2026-09-25T06:17:56","date_gmt":"2026-09-25T00:47:56","guid":{"rendered":"https:\/\/economictimes.lk\/?p=7482"},"modified":"2026-09-25T06:17:58","modified_gmt":"2026-09-25T00:47:58","slug":"wendys-franchisee-files-for-chapter-11-bankruptcy-protection-as-burger-chain-struggles","status":"publish","type":"post","link":"https:\/\/economictimes.lk\/index.php\/2026\/09\/25\/wendys-franchisee-files-for-chapter-11-bankruptcy-protection-as-burger-chain-struggles\/","title":{"rendered":"Wendy\u2019s franchisee files for Chapter 11 bankruptcy protection as burger chain struggles"},"content":{"rendered":"\n

Meritage Hospitality, one of Wendy\u2019s<\/a> largest U.S. franchisees, filed for Chapter 11 bankruptcy protection on Thursday.<\/p>\n\n\n\n

The filing comes as the burger chain has struggled to win over diners<\/a> who have become increasingly focused on value. For six straight quarters, Wendy\u2019s has reported same-store sales declines. A revolving door of chief executives in recent years has led to muddled turnaround strategies, and the company\u2019s stock has lost two-thirds of its value over the past three years.<\/p>\n\n\n\n

\u201cBecause the substantial majority of Meritage\u2019s restaurant portfolio operates under Wendy\u2019s brand, those system-wide pressures have had a significant impact on the Company\u2019s financial position,\u201d Meritage said in a press release announcing the filing.<\/p>\n\n\n\n

At an investor conference in June, Meritage CEO Bob Schermer Jr. said that store-level earnings before interest, taxes, depreciation and amortization had plummeted 48% in 2025. Rising beef costs<\/a> and increased discounts weighed on the franchisee\u2019s profits.<\/p>\n\n\n\n

Meritage said it filed for bankruptcy to strengthen its balance sheet, and the company plans to keep its restaurants running during the restructuring process. Meritage operates 314 Wendy\u2019s restaurants across 15 states, as well as one Bojangles location and five independently branded stores.<\/p>\n\n\n\n

Meritage estimated that its assets are valued at $10 million to $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 for Wendy\u2019s franchise business, is listed as its top unsecured creditor with a claim of $24.9 million for deferred franchise fees.<\/p>\n\n\n\n

Source: CNBC<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Meritage Hospitality, one of Wendy\u2019s largest U.S. franchisees, filed for Chapter 11 bankruptcy protection on…<\/p>\n","protected":false},"author":4,"featured_media":7483,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[5],"tags":[],"class_list":["post-7482","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t