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FAT Brands Faces Financial Distress Amid Acceleration Notices

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FAT Brands Faces Financial Distress Amid Acceleration Notices

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Fat Brands ( (FAT) ) has issued an update.

FAT Brands Inc. recently faced financial challenges as it received default notices under its base indentures for five special purpose financing subsidiaries. On November 17, 2025, the company received acceleration notices from UMB Bank for four of these subsidiaries, declaring the outstanding principal and accrued interest immediately due. The total principal outstanding is approximately $1,256.5 million, with accrued interest of $43.2 million. The company lacks the funds to cover these amounts, which could lead to significant financial distress, including potential bankruptcy proceedings. FAT Brands is in discussions with noteholders for possible refinancing or restructuring but has not reached any agreements yet.

The most recent analyst rating on (FAT) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Fat Brands stock, see the FAT Stock Forecast page.

Spark’s Take on FAT Stock

According to Spark, TipRanks’ AI Analyst, FAT is a Neutral.

Fat Brands’ overall stock score is primarily impacted by its poor financial performance and bearish technical indicators. The company’s high leverage and negative cash flow position are significant concerns. While the earnings call highlighted some strategic initiatives and potential improvements, the financial instability and valuation issues weigh heavily on the score.

To see Spark’s full report on FAT stock, click here.

More about Fat Brands

Average Trading Volume: 75,537

Technical Sentiment Signal: Sell

Current Market Cap: $20.21M

See more insights into FAT stock on TipRanks’ Stock Analysis page.

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