FAT Brands Inc. Files Voluntary Chapter 11 Petitions to Bolster Capital Structure
Rhea-AI Summary
FAT Brands (NASDAQ: FAT) announced it commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas on Jan 26, 2026 to deleverage its balance sheet and maximize stakeholder value. The company says its portfolio of 18 restaurant brands and more than 2,200 locations will continue operating and that trading on NASDAQ is expected to continue with a “Q” suffix during the chapter 11 process. Management stated the process will support growth, protect stakeholders, and prioritize service to customers, franchise partners and over 45,000 employees. Advisors and service providers are named for legal, financial and claims administration roles.
Positive
- Chapter 11 filing intended to deleverage the balance sheet
- Portfolio includes 18 brands and >2,200 global locations
- Company expects operations to continue uninterrupted during restructuring
- Trading to continue on NASDAQ with a “Q” suffix
Negative
- Company commenced voluntary Chapter 11 bankruptcy proceedings
- Filed disclosure includes potential cancellation of equity
- Filing cites risks including possible insufficient liquidity and lengthy restructuring
News Market Reaction
On the day this news was published, FAT gained 0.51%, reflecting a mild positive market reaction. Argus tracked a peak move of +6.1% during that session. Argus tracked a trough of -56.1% from its starting point during tracking. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $36K to the company's valuation, bringing the market cap to $7M at that time. Trading volume was exceptionally heavy at 8.8x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Restaurant peers showed mixed moves: FATBB -4.55%, NDLS -3.8%, BDL -6.75% versus ARKR +0.62% and RAVE +2.18%. With FAT up only 0.51% pre-announcement and no clear directional consensus among peers, the Chapter 11 filing appears company-specific rather than sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 23 | Foundation initiative | Positive | +1.8% | FAT Brands Foundation raised funds and grants to support Feeding America. |
| Jan 12 | Product promotion | Positive | +5.2% | Great American Cookies launched limited-time Valentine’s Day Cookie Cakes. |
| Jan 08 | Conference appearance | Neutral | -6.3% | Management scheduled a fireside chat at the 28th Annual ICR Conference. |
| Jan 05 | Menu launch | Positive | +3.2% | Round Table Pizza introduced the Triple Crown Pepperoni Pizza promotion. |
| Dec 18 | Store opening | Positive | +1.4% | Fazoli’s opened a fourth Phoenix-area restaurant with further expansion planned. |
Recent news skewed toward brand promotions and community initiatives, typically followed by modest positive price reactions. The abrupt shift to a Chapter 11 filing contrasts with this pattern of benign operational headlines and suggests a break from the prior news-driven trading behavior.
Over the last few months, FAT’s news flow focused on brand marketing, expansion, and community engagement. Promotions at Round Table Pizza and Great American Cookies, a new Fazoli’s opening, and philanthropic activity via the FAT Brands Foundation all highlighted network breadth of over 2,300 units and ongoing concept development. These updates often coincided with small positive moves. The current Chapter 11 announcement diverges sharply from that operational narrative and follows earlier filings describing debt accelerations and going‑concern risks.
Market Pulse Summary
This announcement details FAT’s voluntary Chapter 11 process aimed at deleveraging while keeping its 18 brands and over 2,200 locations operating. It follows prior SEC filings that highlighted accelerated franchise‑backed debt, going‑concern language, and Nasdaq compliance issues. Investors monitoring this situation may focus on court approvals, restructuring terms, treatment of existing securities, and any updates on liquidity and operations as the company navigates bankruptcy proceedings with more than 45,000 employees and franchise partners involved.
Key Terms
chapter 11 regulatory
u.s. bankruptcy court regulatory
claims process regulatory
forward-looking statements regulatory
form 8-k regulatory
AI-generated analysis. Not financial advice.
LOS ANGELES, Jan. 26, 2026 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (the “Company”), today announced it has commenced voluntary chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas. FAT Brands plans to use the filings to deleverage the balance sheet, maximize value for its stakeholders, and support continued growth of its brands.
FAT Brands’ portfolio of 18 restaurant concepts encompasses more than 2,200 locations worldwide. Iconic brands such as Fatburger, Johnny Rockets, Round Table Pizza, among others, are expected to remain operating as usual during the chapter 11 process, and will continue to provide their signature dining experiences. Trading of FAT Brands’ securities on NASDAQ is expected to continue with a “Q” suffix during this period.
"Our dynamic portfolio of brands has demonstrated tremendous resilience in a challenging restaurant operating environment over the last few years. We are well positioned for long-term profitability and growth. The chapter 11 process will provide us with the opportunity to strengthen our capital structure to support our concepts and ensure they remain at the forefront of their sectors,” said Andy Wiederhorn, CEO of FAT Brands. “We plan to use this process to connect with key stakeholders around a value-maximizing plan and will act prudently to remain steadfast in upholding and protecting stakeholder interests. Our focus in this process remains providing quality service to our customers and supporting our franchise partners and the over 45,000 corporate and franchise employees.”
Bankruptcy Court filings and other information about the claims process and proceedings can be found at a separate website maintained by the Company’s proposed claims and noticing agent, Omni Agent Solutions, Inc., at https://omniagentsolutions.com/FatBrands-TwinHospitality.
Latham & Watkins LLP is serving as legal counsel to the Company. GLC Advisors & Co., LLC is serving as investment banker, Huron Consulting Services LLC is serving as financial advisor, and Omni Agent Solutions, Inc. is serving as claims, noticing and solicitation agent.
About FAT (Fresh. Authentic. Tasty.) Brands
FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. The Company currently owns 18 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Smokey Bones, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,200 units worldwide. For more information on FAT Brands, please visit fatbrands.com.
Forward Looking Statements
This Current Report on Form 8-K contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon our present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by our forward-looking statements as a result of various factors These forward-looking statements include, among others, statements about: the Company’s ability to obtain Bankruptcy Court approval with respect to motions in the Chapter 11 proceedings, including the “first day” relief being requested; the Company’s ability to successfully consummate a restructuring; the expected effects of the Chapter 11 proceedings, on the Company’s business and the interests of various stakeholders; the Company’s ability to continue operating in the ordinary course; the terms, effectiveness, and consummation of a chapter 11 plan; the anticipated capital structure upon emergence from bankruptcy; the expected treatment of claims; the potential cancellation of the Company’s equity; the registration status of any new securities to be issued pursuant to a chapter 11 plan, and the timing of any of the foregoing. Forward-looking statements are based on the Company’s current expectations, assumptions and estimates and are subject to risk, uncertainties, and other important factors that are difficult to predict and that could cause actual results to differ materially and adversely from those expressed or implied. These risks include, among others, those related to: the Company’s ability to confirm and consummate a chapter 11 plan of reorganization; the duration and outcome of the Chapter 11 proceedings; the risk of the Company suffering from a long and protracted restructuring; the impact of the Chapter 11 proceedings on the Company’s operations, reputation and relationships with tenants, lenders, and vendors; the Company having insufficient liquidity; the availability of financing during the pendency of, or after completion of, the Chapter 11 proceedings; the effectiveness of overall restructuring activities pursuant to the Chapter 11 proceedings and any additional strategies that the Company may employ to address its liquidity and capital resources and achieve its stated goals; the potential cancellation of the Company’s equity; and the Company’s historical financial information not being indicative of its future performance as a result of the Chapter 11 proceedings.
The information contained in the Company’s filings with the Securities and Exchange Commission (“SEC”), including under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 29, 2024 and subsequent filings with the SEC, or incorporated herein or therein, identifies other important factors that could cause differences from our forward-looking statements. The Company’s filings with the SEC are available on the SEC’s website at www.sec.gov.
You should not place undue reliance upon the Company’s forward-looking statements.
Except as required by law, we do not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
MEDIA CONTACT:
Erin Mandzik, FAT Brands
emandzik@fatbrands.com
INVESTOR RELATIONS:
ICR
Michelle Michalski
IR-FATBrands@icrinc.com
FAQ
When did FAT (NASDAQ: FAT) file for Chapter 11?
Will FAT Brands restaurants stay open during the Chapter 11 process?
Will FAT stock continue trading after the Chapter 11 filing?
What is FAT Brands’ stated purpose for the Chapter 11 filing?
How many employees does FAT Brands report supporting during the restructuring?
