MTH News & Analysis

Meritage Hospitality Group Files Chapter 11 Bankruptcy Amid $651M Liabilities

Meritage Hospitality Group filed for Chapter 11 bankruptcy last week, citing $651 million in liabilities and $725.9 million in assets. Key issues included rising beef prices, down 48% in store-level earnings before interest, taxes, depreciation, and amortization in 2025, and reduced effectiveness of Wendy's brand marketing. The company intends to close or sell additional underperforming locations while already shuttering 60 sites. This situation emphasizes ongoing challenges within the Wendy's brand, which has seen declining same-store sales for six consecutive quarters, impacting franchise operations significantly.