Wendy's Franchisee Meritage Files Chapter 11; WEN Stock Down 21% in 2026

Wendy's (WEN) franchisee Meritage Hospitality, which operates 314 restaurants across 15 states, filed for Chapter 11 bankruptcy protection, citing weaker demand and deteriorating restaurant economics. Wendy's is Meritage's largest unsecured creditor, owed about $24.9 million in deferred franchise fees. The filing deepens pressure on the chain, whose same-store sales have fallen for six consecutive quarters. WEN stock is down 21% in 2026 and 28% over 52 weeks. In Q2, U.S. same-restaurant sales fell 7%, global systemwide sales dropped 6.5% to about $3.4 billion, and adjusted EBITDA declined 15.4% to $124.1 million. Domestic net closures reached 245 in the first half. Wendy's recently halved its quarterly dividend to $0.07 per share, withdrew its full-year outlook, and paused buybacks. Trian Fund Management shelved a take-private plan in August, citing performance and strategic concerns. Analysts hold a consensus "Hold" rating with an average price target of $7.94.