FAT Brands Faces Existential Threat as Debt Crisis Intensifies

FAT Brands US30258N5014

The equity of FAT Brands is signaling a severe financial emergency. The restaurant franchisor is confronting an immediate demand to address over $1.3 billion in debt, with its liquidity nearly depleted. The market is reacting to the acute risk of insolvency with punishing share price declines.

The company’s financial distress is compounded by persistently weak operational results. For the third quarter of 2025, FAT Brands reported a net loss of $58.2 million. Comparable store sales, a critical retail metric, declined for the eighth consecutive quarter, falling 3.5% most recently.