One of the largest franchisees of the Wendy's fast food restaurant chain has filed for bankruptcy. A record increase in beef prices was cited as the reason for financial difficulties. At the end of last year, as part of a restructuring, the company had already closed dozens of unprofitable restaurants, and now about 300 more Wendy's establishments were under threat, The Mirror US reports.
Meritage Hospitality Group, which operates 314 Wendy's restaurants in 15 states, filed for bankruptcy Sept. 17 in federal court for the Western District of Michigan. A day earlier, Wendy's notified franchisees that it was terminating the agreement “with immediate effect.”
According to Wendy's, Meritage owes the company $27.4 million in royalties and other payments. In addition, the chain is seeking another $119.5 million in fees related to restaurant closures: Meritage closed 60 locations last year.
“We have been working with franchisees and their lenders for over a year to find a sustainable path forward. “Ultimately, given the circumstances, we concluded that terminating the agreement was the most appropriate solution,” the company said.
Meritage's largest market is Michigan, where the company operates 54 Wendy's restaurants. It also owns 44 Wendy's restaurants in Georgia and Florida, 29 in Connecticut, 24 in Tennessee, and 23 in Oklahoma. The company has less than 20 restaurants each in Arkansas, Indiana, Massachusetts, Mississippi, Missouri, North Carolina, Ohio, Texas and Virginia.
Wendy's itself has also faced financial difficulties in recent years. The chain closed 240 restaurants in 2024 and earlier this year announced plans to shut down up to 358 more locations.
Beef comes first?
Recently, US Agriculture Secretary Brooke Rollins said demand for beef remains strong despite rising prices, and Americans, she said, “don't mind” paying more for meat for their families.
In an interview with The Benny Show on Monday, Rollins cited several reasons for the high prices. In particular, she accused Democrats of trying to “destroy cattle herds” and also mentioned the spread of blowflies. The first case of infection with a dangerous pest in Texas was detected on June 3 in cattle in Zavala County, RTVI previously reported.
The minister said the increase in demand associated with the MAHA (Make America Healthy Again) movement played a role.
“Bobby Kennedy, MAHA and I have turned the nutritional guidelines around and put beef first. People say, “I want beef.” America eats more beef than any other country in the world. And instead of eating less of it as prices rise, driven by supply and demand, Americans are eating more beef,” she said.
Beef prices have risen steadily over the past few years. From July to August 2026 alone, according to the Bureau of Labor Statistics, the average price increased from $7,116 to $7,158 per pound. A year earlier, beef averaged $6.631 per pound.
