Blame Beef: Over 300 Wendy’s Locations Just Filed For Bankruptcy

It’s no secret that food costs have been skyrocketing lately. Conflagration, the pandemic, and good ol’ fashioned inflation have caused the rising prices that are top of mind for every American, especially at the grocery store. Beef is one of the grocery items hit hardest by these record-breaking prices, so much so that some are skipping out on beef all together and opting for cheaper meats or even going veggie for a bit. But for the over-300 Wendy’s locations owned by Meritage Hospitality Group, beef prices could be the final deathblow.

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The franchisee, which operates 314 Wendy’s locations across a whopping 15 states, filed for Chapter 11 bankruptcy on September 17, 2026. This comes on the heels of more than 300 Wendy’s locations closing earlier this year as the corporation works to preserve its bottom line. At this rate, we’re not sure Wendy’s will still be around come 2028, although the chain did report opening 44 restaurants in the U.S. during the first half of 2026.

Why Else Did The Wendy’s Franchisee File For Bankruptcy?

According to USA Today’s findings about the filing, the franchisee declared bankruptcy due to low sales. There were quite a few factors contributing to the locations’ lower-than-average numbers, but the cost of beef appears to be the major cause. On top of record-high beef prices, the corporation also cited harsh winter weather and “reduced effectiveness” of marketing tactics. We take that to mean that Wendy’s ads just don’t hit like they used to—and it shows.

Sky-high food prices coupled with reduced sales became the perfect storm that led to the franchisee owing Wendy’s International $25 million. They’d have to sell quite a few fresh-never-frozen burgers to pay off that debt.

Is There Hope For This Franchisee’s Wendy’s Locations?

Maybe. It’s hard to say. As of right now, it appears that the logical next step after filing for Chapter 11 is for the franchisee to close its locations, but it’s not set in stone (at least, not at the time of writing). We imagine it would be nearly impossible for Meritage Hospitality Group to operate hundreds of stores after filing for bankruptcy due to a $25 million debt, but stranger things have happened. 

In the interm, if your neighborhood Wendy’s is owned by Meritage Hospitality Group, assume it’ll likely shutter its doors for good in the near future. If that happens, you can watch an old-school Wendy’s training video to learn how to create their famous square burgers at home. Or, get cozy with another fast food chain—we hear Burger King is nice this time of year.