The Wendy’s CoWEN
Mentioned
Impact on assets 1
Consumer Discretionary
The Wendy’s CoTheme Impact
Off-coverage companies 2
BojanglesPrivate± Mixed
relevance
Meritage Hospitality Group, Inc.Private± Mixed
relevance
Meritage Hospitality Group, one of Wendy's largest franchisees, filed for Chapter 11 bankruptcy protection last week after several quarters of declining same-store sales across the Wendy's system left it unable to maintain profitability. Revenue declined 7.6% to $618 million in 2025 compared to about $669 million in 2024, and fell 14% to $274 million in the first half of 2026, while same-store sales dropped 7.2% in 2025 and 8.3% in the first half of this year. An $8 million net income in 2024 flipped to a nearly $32 million net loss in 2025, followed by a net loss of $23 million in H1 2026. The operator, which spent $400 million growing its Wendy's portfolio to more than 370 units and today owns 314 Wendy's restaurants plus one Bojangles and five independent concepts, closed about 60 underperforming restaurants and completed sale-leaseback deals netting $41 million and over $11 million. Wendy's franchisor organization, Quality Is Our Recipe, sent a termination of franchisee rights and lease occupancy rights on Sept. 16, claiming Meritage owes over $27 million in past due royalties and more than $119 million in continuous operations fees, a notice Meritage disputes as ineffective.
The Wendy’s Co