With beef prices stampeding burger aficionados this summer, the largest Wendy’s franchisee operating in Connecticut filed for bankruptcy protection and asked a judge to force Wendy’s to continue supporting it while it goes through a financial restructuring.
As of its bankruptcy filing last Thursday, Meritage Hospitality Group owned 29 Wendy’s locations in Connecticut, without listing specific locations on its website. Including locations owned by other franchisees, Wendy’s lists 50 Connecticut locations in all. The immediate result of the filing on any of the restaurants was unclear.
Grand Rapids, Michigan-based Meritage blamed an 18.6% spike in beef prices this summer that has impacted its bottom line, along with what it termed “unusual winter weather” as a result of the La Niña cycle in the southern United States that disrupted sales; and being forced to offer deeper discounts to lure back inflation-weary customers.
Claiming it is owned $147 million, the Quality Is Our Recipe LLC subsidiary of Wendy’s issued Meritage formal terminations of contractual franchise and lease occupation rights, according to a Meritage bankruptcy filing. Meritage indicated it is disputing those termination decisions, and stated it has also received default notices on debt from a syndicate of lenders.
Meritage aims to “achieve a successful restructuring that maximizes value for all stakeholders while preserving jobs and restaurant operations across the 15-state footprint,” stated Kevin Cleary, chief restructuring officer for Meritage, in a court filing. “Continued access to the Wendy’s franchise system is indispensable to any viable restructuring.”
In all, Meritage has 320 Wendy’s restaurants in 15 states, with Connecticut having the fourth largest concentration after Michigan, Florida and Georgia. The company closed 60 Wendy’s restaurants last year it described as “underperforming” relative to others, and ratcheted back a foray into breakfast.
Meritage reported a $23.1 million loss in the first six months of its current fiscal year, on the heels of a $31.5 million loss for its 2025 fiscal year as revenue dropped 7% to $618 million.
Founded as a hotel management company, Meritage branched into fast food in 1998 with the purchase of 28 Wendy’s restaurants in its home state.
Includes prior reporting by Jordan Nathaniel Fenster.
Dining and Cooking