Wendy's Faces Franchisee Bankruptcies and $1.4 Billion Buyout Offer
Wendy's faces major turmoil as a top U.S. franchisee seeks bankruptcy and up to 60 closures, while a $1.4 billion buyout bid aims to take the chain private amid rising costs.
American fast-food chain Wendy's is facing significant business turmoil, marked by restaurant closures, franchisee struggles, and a buyout proposal. Meritage Hospitality Group, one of its major U.S. franchisees, has filed for Chapter 11 bankruptcy protection and is now asking the court for approval to close up to 60 additional restaurants.
The filing follows a series of closures by the company, which operated 314 Wendy's locations when the legal proceedings began. According to documents submitted to the U.S. Bankruptcy Court for the Western District of Michigan, the firm seeks to shut down at least 20 more restaurants, with the total potentially reaching 60. The process is scheduled to unfold over the coming weeks, targeting completion by November 13.
The franchisee filed for Chapter 11 bankruptcy protection on September 17, a mechanism allowing companies to restructure debt under court supervision. According to reports, 33 locations across nine U.S. states have already been closed since the filing due to demands from lenders. Earlier, starting in the fourth quarter of 2025, approximately 60 underperforming outlets were also shuttered.
If the current request is fully approved, the total number of closures since the bankruptcy filing will reach 93, representing nearly 30% of the 314 restaurants the company operated initially. A specific list of branches slated for closure has not yet been released, and exact locations will be disclosed later in the proceedings.
Meanwhile, Wendy's itself is facing a buyout offer valued at approximately $1.4 billion from an investor group led by Nelson Peltz through Trian Fund Management, alongside Flynn Group and two other investment firms. Under the proposal submitted to the board of directors, the investors aim to acquire the company's shares in cash and take the firm private.
The offer stands at $7.35 per share, representing about a 19% premium over the stock's closing price the previous day. Following the announcement, Wendy's shares surged roughly 15% at the market open. Representatives of the investor group believe that private ownership will allow the chain to focus on long-term profitability and necessary business investments.
Pressuring the chain's operations are high beef costs, inflation, intensifying competition, and declining customer traffic. According to data from research firm Technomic, Wendy's share of U.S. burger chain sales dropped from 11.5% in 2019 to 10.4% in 2025.
Wendy's previously closed 240 U.S. restaurants during 2024 and announced in early 2026 that it plans to shutter up to 358 outlets throughout the year. Founded in 1969 and renowned for its square hamburgers, the chain maintains a broad presence across the United States and globally.
