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Why Wendy's Stock Flopped on Friday
The Motley Fool·
Wendy's stock dropped nearly 4% on Friday following news that Meritage Hospitality Group, a major franchisee operating 314 Wendy's locations, filed for Chapter 11 bankruptcy protection. The company defaulted on $150 million in borrowings with City National Bank. This development threatens a significant revenue stream for Wendy's and compounds the company's existing struggles in a competitive quick-service restaurant industry.
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