Fat Brands shares fall 11.91% intraday after acceleration notice on $158.9M debt and $58.2M Q3 loss.

Fat Brands Inc. (NASDAQ:FAT) fell 11.91% intraday after disclosing a $158.9 million debt acceleration notice from UMB Bank, requiring immediate repayment of secured notes held by its subsidiary, FB Resid Holdings I, LLC. The company lacks sufficient liquidity to cover the debt, which is secured by 22.5% of Twin Hospitality Group’s voting shares, and warned of potential bankruptcy proceedings. Concurrently, the firm reported a $58.2 million net loss for Q3 2025, missing estimates by 74%, amid a 2.3% revenue decline. These developments, coupled with a downgrade from Noble Capital to Market Perform, signaled severe financial distress, triggering sharp selling pressure. A director’s resignation, while noted, was deemed unrelated to operational disputes and had minimal standalone impact.