FAT Brands Inc. shares surged by 40.83% in pre-market trading as the company crossed above its 5-day SMA.
The significant price movement follows FAT Brands' announcement of its voluntary Chapter 11 bankruptcy filing in the Southern District of Texas, aimed at restructuring over $1.4 billion in debt while continuing operations across its restaurant portfolio. Despite the bankruptcy, the company is actively pursuing a restructuring plan and has engaged advisors to assist in maximizing stakeholder value, which has sparked investor interest and optimism about future growth potential.
This development indicates a proactive approach by FAT Brands to stabilize its financial situation and maintain brand operations, which could lead to a more favorable market perception as the restructuring progresses.
FAT Brands Inc. is a global franchising company, which acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. It 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 2,300 units worldwide. Round Table Pizza is the franchisor of quick service restaurants located in California and the western United States. Hot Dog on a Stick is the franchisor of quick service restaurants located in regional malls in California and the western United States. Johnny Rockets is an international restaurant franchise and offers menu items including Certified Angus Beef cooked-to-order hamburgers, chicken sandwiches, and malts.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
