Wendy’s Proposes Buying Meritage Restaurants as 276 Locations Continue Operating Across 9 Markets
Key Facts
Wendy’s disclosed an agreement in principle to buy restaurants owned by franchisee Meritage, as part of the group’s asset-sale process after it sought bankruptcy protection. The proposed agreement remains subject to a definitive agreement and court approval, with the possibility of higher or better offers. Meritage filed for Chapter 11 protection on 17 September 2026, when it operated 320 restaurants, including 314 Wendy’s locations. The company’s disclosure said Meritage continued to operate about 276 restaurants across 9 markets as of the report date. The proposed deal therefore comes as the franchisee’s restaurant network contracts during restructuring proceedings.
Wendy’s notice terminating the franchise agreement preceded the bankruptcy filing. The company said in its disclosure that it sent the notice on 16 September because amounts due had gone unpaid, including 27.4 million dollars in royalties, advertising fees and other past-due charges. Meritage filed for bankruptcy the following day. The Associated Press reported that Meritage intends to continue operating its restaurants and paying 9,000 employees during the bankruptcy proceedings. That places the proposed purchase agreement within a court process addressing the company’s assets, restaurant operations and creditors’ rights.
The sale documents describe Wendy’s as the proposed stalking-horse bidder, while leaving the door open to qualified competing offers. The sale memorandum set 11 December 2026 as the proposed deadline for bids. If qualified competing bids are received, the memorandum proposes holding an auction on 17 December. It also proposes a sale hearing on 29 December. These dates remain part of the proposed proceedings, while the deal is contingent on court approvals and final sale terms.
Before the bidding stage, the bankruptcy judge set 24 November 2026 for a hearing on the proposed settlement and bidding procedures. According to a summary of the case file, the deadline to object to the proposals was 20 November. The hearing will address procedural steps ahead of the offer process and potential auction. Wendy’s designation as the proposed stalking-horse bidder therefore does not determine the sale’s outcome, as the process allows a better competing offer to be accepted if it meets the requirements. The proposed sale hearing in December would be a later stage in the court process.
These developments come amid broader moves involving Wendy’s ownership and restaurant performance. The company’s shares rose more than 14% on 28 October after investor Nelson Peltz announced an offer to buy the chain, before Wendy’s later rejected the offer. The company said a committee of independent directors unanimously rejected the offer from the group led by Trian, saying it “significantly undervalues the company.” On 5 November, the stock rose less than 1% as the company reported third-quarter results, according to the Associated Press. Earlier in the year, the company had said it planned to close up to 358 locations during 2026.