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Fat Brands Faces Financial Strain After Acceleration Notice

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Fat Brands Faces Financial Strain After Acceleration Notice

TipRanks Cyber Monday Sale

An update from Fat Brands ( (FAT) ) is now available.

On November 25, 2025, FAT Brands Inc. received an acceleration notice from UMB Bank regarding the FB Resid Notes, declaring the outstanding principal and interest immediately due. This financial strain, due to an event of default declared earlier in November, could significantly impact the company’s financial condition and may lead to bankruptcy proceedings. Additionally, James Ellis resigned as a director of the company and its subsidiary for personal reasons, not due to any disagreements with the company’s operations.

The most recent analyst rating on (FAT) stock is a Hold with a $0.53 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 faces significant financial challenges, with negative profitability and high leverage being the most critical issues. Technical analysis supports a bearish outlook, and valuation metrics reflect financial distress. While the earnings call provided some positive strategic insights, these are insufficient to offset the financial and operational risks.

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

More about Fat Brands

Fat Brands Inc. operates in the restaurant franchising industry, focusing on the development and acquisition of fast-casual and casual dining restaurant concepts.

Average Trading Volume: 179,305

Technical Sentiment Signal: Sell

Current Market Cap: $12.11M

For detailed information about FAT stock, go to TipRanks’ Stock Analysis page.

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