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Franchise economics are becoming a bigger turnaround challenge

McDonald's just handed franchisees a massive multi-year commitment, but the market is punishing the stock while rivals barely flinch. Here is why investors are reading the same plan two very different ways.

The fast-food giant wants the franchisee’s restaurants transferred either to itself or to other franchisees, according to court filings.

Wendy's has had a tough run, and the question now is whether the cash the business can realistically generate still lines up with where the shares trade. With the spotlight back on franchise health and royalties, the stock’s current price invites a closer look at what its cash flows really support. Over the past 5 years, Wendy's share price has fallen 62.5%, which puts sharper focus on whether the underlying cash flows have kept pace with that reset. The Chapter 11 filing of major franchisee...

Franchisee Meritage Hospitality Group said it could close or sell underperforming locations.

One of Wendy’s largest U.S. franchisees has filed for bankruptcy protection after Wendy’s tried to terminate its franchise agreement. Meritage Hospitality Group, which operates 314 Wendy’s restaurants in 15 states, said in a statement last week it intends to keep operating its restaurants and paying its 9,000 employees during the bankruptcy process. Grand Rapids, Michigan-based Meritage filed its bankruptcy petition in federal court in western Michigan on Sept. 17.

The no. 3 burger chain has posted six straight quarters of falling sales. Now one of its biggest operators is feeling the heat.

Meritage Hospitality Group, which operates 314 Wendy's locations, listed $651 million in liabilities and cited brand-level marketing failures

Meritage Hospitality Group, one of the largest Wendy’s franchisees in the U.S., filed for bankruptcy after the burger chain moved to terminate its franchise rights across more than 300 restaurants. The Grand Rapids, Michigan-based company filed its petitions September 17 in the U.S. Bankruptcy Court for the Western District of Michigan. Meritage operates 320 quick-service […]

Weak traffic is putting growing pressure on the franchise system

One of Wendy’s franchisees, operating 314 Wendy’s restaurants across 15 states, or about 5% of Wendy’s U.S. system, filed a voluntary Chapter 11 petition on Thursday.

In a blow to the fast-food giant’s brand, Meritage cited ‘sustained system-wide headwinds’ and broader company struggles in its Chapter 11 petition.

The 314-unit operator of the struggling fast-food chain filed for Chapter 11 bankruptcy after closing 60 locations earlier this year.

Meritage Hospitality Group, which operates 314 Wendy’s units, has closed at least 60 units and opted out or altered the breakfast daypart to improve store-level EBITDA.

The major franchisee operates over 350 fast-food burger restaurants and six brunch cafes.

The restaurant industry is expected to continue to face a challenging consumer backdrop amid elevate

Starbucks initiated, Expedia downgraded: Wall Street's top analyst calls

The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on. However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.

Wendy’s stock is trading at a steep discount to fast-food rivals. Turnarounds at Domino’s and McDonald’s show what the burger chain needs to fix.

The restaurant chain may not receive the acquisition offer that investors expected.

Wendy’s stock sinks on reports Nelson Peltz no longer wants to take it private. Here’s what it means for WEN shares.

A report that Wendy’s may be taken private caused shares to soar two weeks ago.

Wendy’s (NASDAQ:WEN) shares dropped more than 14% in pre-market trading on Thursday after Reuters reported that Nelson Peltz’s Trian Fund Management has stepped back from pursuing a potential takeover of the fast-food restaurant chain. Citing people familiar with the matter, Reuters reported that Trian does not currently intend to make a bid to take Wendy’s private, reversing expectations that had helped drive the shares substantially higher earlier this month.

Investing.com -- Wendy's (NASDAQ: WEN) shares have dropped more than 14% in premarket trading Thursday after Reuters reported that Nelson Peltz's Trian Fund Management has stepped back from a potential buyout of the burger chain.

Investing.com -- Wendy's (NASDAQ: WEN) shares have dropped more than 14% in premarket trading Thursday after Reuters reported that Nelson Peltz's Trian Fund Management has stepped back from a potential buyout of the burger chain.

High short interest in Wendy’s is fueling retail speculation about a potential short squeeze.

Trian was reportedly exploring a potential takeover of Wendy’s earlier this month with a group of investors including BlueFive Capital and Wendy’s franchisee Flynn Group.

Investing.com -- Shares of The Wendy’s Co (NASDAQ:WEN) plunged 14.8% in after-hours trading Wednesday following reports that Nelson Peltz’s Trian Fund Management currently has no plans to make a take-private bid for the fast-food chain. According to reporting from Reuters, citing sources familiar with the matter, the hedge fund has stepped back from pursuing a buyout at this time. The sudden retreat unwinds momentum generated earlier this month when reports indicated Trian was preparing a consor

WEN's U.S. traffic falls 12.5% as its five-point reset targets menu value, branding, execution, digital engagement and restaurant economics.

Wendy’s posted Q2 results, slashing its dividend and scaling back annual guidance while activist investor Nelson Peltz keeps up the pressure.