Meritage Hospitality, one of Wendy’s largest U.S. franchisees, voluntarily filed for Chapter 11 bankruptcy protection to strengthen its balance sheet after store-level earnings fell nearly 50% in 2025 amid rising beef prices and heavier discounting. The Grand Rapids, Michigan-based company operates 314 Wendy’s restaurants in 15 states, along with one Bojangles restaurant and five independently branded concepts. Meritage had announced plans months earlier to close 60 locations to improve performance in 2026, but said it currently expects normal restaurant operations to continue through the restructuring. Wendy’s has posted same-store sales declines for six consecutive quarters, pressures Meritage said significantly affected its financial position. Wendy’s shares were down 2.58% at $6.81 at publication after earlier falling as much as 6% in Friday trading.