Meritage Hospitality Sells 42 Wendy’s Locations

The restaurant group is divesting assets to cover unpaid royalties following its recent bankruptcy filing.

Updated on Oct. 26, 2026 in Dining Out

Isometric editorial illustration of a generic suburban commercial building with a drive-thru lane, representing restaurant asset divestment. — Meritage Hospitality Group agreed to sell 42 Wendy's locations to Divine Infinity Operations for $18.6 million to settle overdue royalty payments. AI Illustration. Upload story photo >

Live Poll

Do you trust that major national chains can maintain service quality while downsizing their local footprint?

Meritage Hospitality Group has reached an agreement to sell 42 of its Wendy's locations to Divine Infinity Operations for $18.6 million. The proceeds from the transaction will be used by the group to pay off overdue royalty fees.

Why it matters

The sale comes as Meritage navigates bankruptcy proceedings, providing a way to settle financial obligations. This divestment aims to streamline the operator's portfolio as it faces ongoing challenges within the fast-food sector.

The deal involves 42 restaurants across Tennessee, Arkansas, Mississippi, and Missouri. Following the sale, Meritage expects to retain approximately 200 Wendy's units out of its original portfolio of 314.

The players

Meritage Hospitality Group

This organization is a restaurant operator that maintains a significant portfolio of Wendy's franchise locations across the United States.

Divine Infinity Operations

This company is the acquiring entity that agreed to purchase the restaurant assets from Meritage Hospitality Group.

Wendy's

This is a major international fast-food chain headquartered in Columbus, Ohio, that operates approximately 5,700 locations throughout the United States.

The details

Meritage Hospitality Group entered the agreement during the week of October 26, 2026, amid a period of declining sales. The broader Wendy's brand has also seen significant contraction, with more than 240 U.S. restaurants closing during the first half of 2026.

In the first half of 2026, Wendy's closed more than 240 U.S. locations.
Meritage Hospitality Group filed for bankruptcy in September 2026.
The sale of 42 restaurants was announced the week of October 26, 2026.

Culture Shift

This transaction reflects a broader trend of downsizing among major fast-food franchisees as the industry reacts to fluctuating sales and rising operational costs. The move underscores the shift toward smaller, more manageable portfolios for operators navigating bankruptcy and restructuring.

Customers in Tennessee, Arkansas, Mississippi, and Missouri may see changes in management or operational standards as the restaurants transition to new ownership. There are no immediate expected changes to the current menu or service availability at these locations.

The takeaway

Franchise owners often consolidate assets during financial distress to preserve core operations and meet royalty obligations. Consumers should expect that while ownership might change, the fundamental service at their local restaurant will likely remain consistent.