Major Fast-Food Chain Faces Wave Of Restaurant Closures As Franchise Giant Files For Bankruptcy

Wendy's could see up to 60 more restaurants closed across the United States through mid-November as one of its largest franchise operators battles bankruptcy, according to USA Today.

Meritage Hospitality Group, which filed for Chapter 11 bankruptcy protection on September 17, has already shuttered 33 restaurants since entering bankruptcy proceedings and could reportedly shut down dozens more by November 13.

Meritage previously closed 60 underperforming locations before filing for bankruptcy. Reports differ on whether the 33 closures since the filing count toward the up-to-60 figure, so the total could reach roughly 120 or more.

The restaurant company operated 314 Wendy's restaurants across 15 states when it filed for bankruptcy.

Meritage reported a $31.5 million net loss in 2025, followed by another $23.1 million loss during the first half of 2026, according to QSR Magazine.

The franchisee blamed weak sales, aggressive discounting and what it described as less effective Wendy's marketing under the chain's previous leadership. The financial pressures have been compounded by stubbornly high beef prices, which the Trump administration has struggled to bring down despite aggressive efforts to boost imports.

In February, President Donald Trump authorized an additional 80,000 metric tons of tariff-free beef imports from Argentina. Moreover, the White House in August allowed another 300,000 metric tons of foreign beef trimmings into the country at reduced tariff rates in hopes of lowering hamburger prices. However, the measures have delivered little relief so far. Ground beef prices have climbed over 22% since Trump returned to office.

Meritage's bankruptcy has also triggered a bitter financial dispute between the restaurant company and Wendy's, with the fast-food chain claiming the operator owes approximately $147 million in royalties, fees and other contractual charges.

The latest development has only made Wendy's already difficult few years go from bad to worse. The burger chain has suffered over 300 net restaurant closures since 2024, including 245 during the first half of 2026, according to NRN.