Meritage Hospitality Group, one of The Wendy's Company's largest U.S. franchisees, filed for Chapter 11 bankruptcy protection on September 18, 2026, citing six consecutive quarters of same-store sales declines at the burger chain. Meritage, which operates 314 Wendy's restaurants across 15 states, said store-level earnings before interest, taxes, depreciation, and amortization dropped by 48% in 2025 amid rising beef costs and heavier discounting. The filing leaves Wendy's holding a nearly $25 million unsecured claim, after Meritage deferred approximately $24.9 million in franchise fees, and Reuters reported that longtime shareholder Trian no longer plans an immediate offer, complicating any near-term takeover of a company that also carries approximately $2.8 billion of securitized debt. Wendy's has separately cut its quarterly dividend from $0.14 to $0.07 per share, a move Forbes estimates will let it retain roughly $50 million annually to support its turnaround. Wendy's shares traded approximately 60% below their level five years earlier, and its hedge fund count fell to 27 in the second quarter from 36 in the first, with position value rising slightly to $424.3 million from $420.9 million.
The Wendy’s CoLargest franchisee Meritage filed Chapter 11, leaving Wendy's a ~$25M unsecured claim and ~$24.9M in deferred franchise fees, while Trian's takeover interest dimmed.
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