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Fat Brands Initiates Chapter 11 Restructuring and Leadership Changes

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Fat Brands Initiates Chapter 11 Restructuring and Leadership Changes

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

On January 26, 2026, FAT Brands Inc. and its subsidiaries filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Texas, aiming to deleverage their balance sheet, maximize stakeholder value and support continued growth of the company’s restaurant brands while continuing to operate locations as debtors-in-possession. On the same date, the board expanded from 14 to 15 members, appointing restructuring specialists Patrick Bartels and Neal Goldman as independent directors and forming a special committee to oversee restructuring, while also naming Huron Consulting Services’ John DiDonato as chief restructuring officer and Abhimanyu Gupta as deputy CRO; the company cautioned that trading in its securities is highly speculative during the proceedings and warned shareholders they may face a complete or significant loss depending on the outcome of the Chapter 11 cases.

The most recent analyst rating on (FAT) stock is a Hold with a $0.37 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.

The score is driven down primarily by severe financial weakness (losses, negative cash flow, and negative equity/high leverage) and bearish technicals. Earnings-call initiatives (cost cuts, restructuring plans) provide some offset, but corporate default/acceleration notices and the questionable reliability of valuation signals keep overall risk high.

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

More about Fat Brands

FAT Brands Inc., listed on Nasdaq under the ticker FAT, is a global restaurant franchising company that acquires, markets and develops fast casual, quick-service, casual dining and polished casual dining concepts. Its portfolio comprises 18 brands, including Fatburger, Johnny Rockets, Round Table Pizza, Twin Peaks, Marble Slab Creamery and others, with more than 2,200 franchised and company-owned locations worldwide serving over 45,000 corporate and franchise employees.

Average Trading Volume: 390,751

Technical Sentiment Signal: Sell

Current Market Cap: $8.14M

See more data about FAT stock on TipRanks’ Stock Analysis page.

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