Trump’s effort to ease beef costs has not stopped a major Wendy’s franchise operator from entering Chapter 11, putting up to 60 more restaurants at risk. Meritage Hospitality Group entered bankruptcy proceedings on September 17, and the company could close additional locations across the United States through November 13.
That comes after Meritage already shut 33 Wendy’s restaurants during the bankruptcy case and closed 60 underperforming sites before the filing. Reports do not agree on whether the 33 post-filing closures are included in the up-to-60 estimate. If they are separate, the combined total may approach 120 or exceed it.
The scale is significant. Meritage was running 314 Wendy’s restaurants in 15 states when it sought court protection. Each additional closure would add pressure to a burger chain that has already lost a net total of more than 300 restaurants since 2024, including 245 in the first half of 2026.
The company’s financial results help explain the shutdowns. Meritage recorded a net deficit of $31.5 million in 2025, then lost another $23.1 million during the first half of 2026. The franchisee cited weak sales, deep discounting and marketing it viewed as less effective under Wendy’s former leadership.
Those losses came alongside higher beef costs. The Trump administration tried to expand supply by approving an extra 80,000 metric tons of beef from Argentina without tariffs in February. In August, the White House allowed another 300,000 metric tons of foreign beef trimmings to enter under reduced tariff rates. The relief has been limited so far: ground beef is more than 22% costlier than when Trump returned to office.
The bankruptcy has also produced a separate fight between Meritage and Wendy’s. The chain says the operator owes approximately $147 million in royalties, fees and other charges tied to their agreements. The claim could affect the bankruptcy case, while the closures deepen an already difficult stretch for the burger chain.
Why It Matters
This matters because a franchise bankruptcy is exposing pressure across an entire brand. Meritage is dealing with losses and a court process, while Wendy’s must manage the fallout from a smaller restaurant network and a major payment dispute. People who rely on those locations may face fewer nearby options, and customers are also feeling the broader effect of high beef costs. The story connects a private business restructuring to larger questions about food prices, franchise economics and whether import policy can deliver relief quickly enough. It reaches beyond the operator because the strain is visible at the franchise level and at the chain level.
Several points remain unsettled. The number of affected restaurants cannot yet be stated with complete confidence because reported closure totals may overlap. Wendy’s claim still has to be handled through the bankruptcy process, and the import measures have not shown that they can reverse the pressure described in the reports. The outcome will shape how much of Meritage’s network survives and how much strain Wendy’s continues to carry after its recent location losses. Until those issues are resolved, the case remains a test of whether the brand can absorb franchise trouble without more closures.
The immediate outcome now depends on whether more Meritage restaurants close before November 13 and how the bankruptcy dispute is resolved. Wendy’s is facing that uncertainty while beef remains expensive and the chain continues to report a large net loss of locations.
Source: The Liberty Daily
