FAT Brands receives Nasdaq delisting notice after stock falls below $1

Core Viewpoint - FAT Brands has received a delisting notice from Nasdaq due to its stock price falling below $1.00 for 30 consecutive days, with a compliance deadline of 180 days to regain the required stock price [1][4]. Group 1: Delisting Notice and Compliance - The company has until July 7, 2026, to regain compliance by closing above $1.00 for 10 consecutive days, or it will face delisting from the Nasdaq stock market [1]. - The delisting notice follows recent financial struggles, including debt acceleration notices from lenders and potential bankruptcy considerations [2]. Group 2: Stock Performance - FAT Brands' stock price has decreased nearly 80% over the past six months, dropping from a peak of $2.30 in September 2025 to $0.37 as of January 9, 2026 [4]. - The company has not maintained the Nasdaq requirement of a minimum stock price of $1.00 since November 19, 2025 [4]. Group 3: Financial Strategy and Operations - The company has financed its growth and debt reduction primarily through brand acquisitions, including notable purchases like Johnny Rockets in 2020 and Smokey Bones in 2023 [3]. - An internal memo indicated that FAT Brands is in "active talks" with bondholders to restructure its balance sheet while assuring franchisees that everyday operations would continue as usual [5].