Wendy's Stock Is Falling Today: What's Going On?

Wendy’s Co. (NASDAQ:WEN) shares are trading lower Friday. Meritage Hospitality, one of the company’s largest U.S. franchisees, filed for Chapter 11 bankruptcy protection Thursday. Here’s what you should know. Wendy’s shares are under pressure. Why are WEN shares declining? Meritage Hospitality Files For Chapter 11 Bankruptcy Meritage Hospitality, which operates 314 Wendy’s locations across 15 states plus a Bojangles restaurant and five independently branded stores, entered Chapter 11 proceedings Thursday. Since nearly all of its restaurants carry the Wendy’s name, the company said broader pressure on the chain has directly strained its own finances, CNBC reported. Meritage CEO Bob Schermer Jr said store-level earnings sank nearly 50% in 2025, driven by rising beef prices and heavier discounting. The company said the filing is meant to shore up its balance sheet while restaurants continue operating normally, and estimated both its assets and liabilities fall between $10 million and $50 million. The filing comes as Wendy’s has posted same-store sales declines for six straight quarters amid frequent executive turnover, with the stock losing roughly two-thirds of its value over the past three years. Wendy’s Chart Shows a Stock Struggling Below Key Averages WEN remains stuck well beneath its major trend lines, trading roughly 14% under its 20-day average and about 11% under its 200-day mark, keeping bounces looking more like selling opportunities until the stock reclaims those levels. Even a golden cross that formed in August hasn’t been enough to lift shares back above their longer-term averages, and the stock remains down about 28% over the past year. Momentum readings lean bearish too, with MACD below its signal line, suggesting buyers are losing ground unless momentum rebuilds quickly. Traders are watching whether the stock can stabilize above its 52-week low of $6.07 rather than continuing to churn near the bottom of its yearly range, with $7.50 standing out as a nearby resistance level where past rebounds have stalled. WEN Shares Are Dipping WEN Price Action: Wendy’s shares were down 2.58% at $6.81 at the time of publication on Friday, according to Benzinga Pro. Read Also: CAVA Unveils $100 Million Stock Buyback Program Image: Shutterstock