FRANKLIN, Tennessee, July 15, 2026, 15:10 CDT
- Closures by Superior Star and ARC Burger total 107, matching Hardee’s two-year net decline in franchised restaurants.
- Franchised outlets made up 86.7% of the chain at fiscal 2026 year-end and 94.7% of its net unit decline over two years.
A court filing on Tuesday showed Hardee’s operator Superior Star closed 30 restaurants in 2025, lifting known closures by it and ARC Burger to 107. That total exactly matches Hardee’s net two-year decline in franchised outlets, exposing how a few large operators can move the chain’s system-wide count.
Superior Star filed for voluntary Chapter 11 protection on July 9 in the U.S. Bankruptcy Court for the Western District of Kentucky. The operator has 59 Hardee’s across 10 states and generated approximately $80 million in gross revenue in 2025, according to court filings; its petition estimated both assets and liabilities at $10 million to $50 million. It says it intends to reorganize and keep the restaurants operating.
The concentration matters because 1,287 of Hardee’s 1,485 restaurants, or 86.7%, were franchised at fiscal 2026 year-end. In an asset-light model, franchisees fund and run most outlets. Franchised stores accounted for 107 of the chain’s 113 net unit decline over two years, or 94.7%. For a mostly franchised system, a few portfolios can move the system-wide count.
| Measure | Two years earlier | Fiscal 2026 year-end | Change |
|---|---|---|---|
| Franchised restaurants | 1,394 | 1,287 | -107 (-7.7%) |
| Total restaurants | 1,598 | 1,485 | -113 (-7.1%) |
| Franchised share | 87.2% | 86.7% | -0.5 percentage point |
Source: Hardee’s franchise disclosure figures reported by Fast Company. Earlier counts and percentages are calculated from the disclosed changes.
The matching 107 figure is not a one-for-one bridge. New franchise openings and closures by other operators could have offset one another within the net figure, while corporate reopenings move the total count, not the franchised tally. Still, ARC’s 77 closures in December 2025 plus the 30 restaurants Superior said it closed last year equal the entire two-year net contraction in franchised units. The exposure sits in a small number of portfolios.
Superior’s distress appears tied to both operations and the 2023 purchase. It acquired 93 restaurants from Starcorp, now runs 59, disputes a roughly $7 million seller note and told the court some locations had “aged physical facilities,” along with unforeseen repair, maintenance and tax costs. The operator is seeking to end leases and other costs on dark sites, restaurants that have shut but still carry obligations. Fast Company
Hardee’s said the filing reflected Superior’s “own specific financial and business circumstances.” The privately held chain did not answer whether more restaurants would close, but said it remained focused on strengthening the system and serving guests. Starcorp did not respond to Fast Company’s requests for comment. Fast Company
Store sales show why old assets can be hard to carry. Hardee’s 2024 average unit volume, annual sales per restaurant, was $1.146 million, versus $1.639 million at Burger King, owned by Restaurant Brands International NYSE:QSR, nearly $2.1 million at The Wendy’s Company NASDAQ:WEN, and more than $4 million at McDonald’s NYSE:MCD. Average unit volume is not profit, but it shows the revenue base available to cover fixed costs.
| Burger chain | 2024 average unit volume | Hardee’s sales gap |
|---|---|---|
| Hardee’s, privately held | $1.146 million | n/a |
| Burger King / Restaurant Brands International NYSE:QSR | $1.639 million | 30.1% lower |
| The Wendy’s Company NASDAQ:WEN | Nearly $2.1 million | About 45.4% lower |
| McDonald’s NYSE:MCD | More than $4 million | At least 71.4% lower |
Source: QSR’s 2025 QSR 50. Gap calculations use the reported 2024 figures.
The implied annual sales gaps were about $493,000 versus Burger King and $954,000 versus Wendy’s, while the difference from McDonald’s was at least $2.85 million. Those sums are not cash flow. They do give the larger chains more room to absorb rent, repairs, remodels and debt service before a store-level problem reaches the owner.
But the figures are not a forecast that Superior’s remaining 59 restaurants will close. The operator says it intends to reorganize and continue trading, while Hardee’s has reopened 25 former ARC locations as company units and plans more. Court-approved lease exits could cut dark-site costs; whether the operating estate can support the rest is not yet clear.
The investor read-through extends beyond private CKE Restaurants. Restaurant Brands bought its largest Burger King franchisee, Carrols, for $1 billion and committed $500 million to remodel those restaurants, a reminder that a franchisee’s deferred renovation bill can shift back to a franchisor’s balance sheet. Hardee’s concentration math suggests unit counts and sales at established restaurants should be read alongside operator debt, lease exposure and required renovation spending. The next number to watch is who pays to keep the surviving stores current.
