Wendy's Franchisee Meritage Files Chapter 11, Citing Record Beef Prices

Meritage Hospitality Group, one of Wendy's largest franchisees, filed for Chapter 11 bankruptcy on September 17, 2026, in the U.S. Bankruptcy Court for the Western District of Michigan, citing record beef costs and declining sales. The company owes Wendy's International approximately $25 million. Meritage operates 314 Wendy's locations across 15 states, concentrated in Michigan (54), Florida (44) and Georgia (44), and employs 8,850 workers. Court documents list assets and liabilities between $10 million and $50 million and 1,000 to 5,000 creditors. The franchisee reported an 11.3% same-store sales decline in the fourth quarter of 2025 and an 18.9% year-over-year increase in average beef costs, driven by historically low U.S. herd levels, a halt on Mexican border beef imports and South American tariffs. Meritage said it will restructure and may close or sell underperforming locations.