Why Wendy's Stock Flopped on Friday
An important franchisee has filed for bankruptcy protection.
Overview
Struggling quick-service restaurant (QSR) company Wendy's (NASDAQ: WEN) didn't barrel into the weekend on a high note, at least as far as its stock was concerned. That followed news that a major corporate franchisee running hundreds of Wendy's had filed for Chapter 11 bankruptcy protection. The fast-food mainstay's shares closed Friday down nearly 4%.
That franchisee is Meritage Hospitality Group, a Michigan-based company that primarily operates Wendy's. It runs 314 of the restaurants, in addition to one Bojangles and five eateries of the relatively new breakfast restaurant Morning Belle.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.
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