SCHEDULE: Fortunoff Brothers Reduce FAT Brands Stake Below 5%

Gregory and Scott Fortunoff have significantly reduced their beneficial ownership in FAT Brands, Inc., falling below the 5% threshold.

Summary

• Gregory Fortunoff and Scott Fortunoff filed an Amendment No. 4 to Schedule 13D for FAT Brands, Inc.
• As of November 16, 2025, the reporting persons ceased to be beneficial owners of more than 5% of FAT Brands' Class A Common Stock.
• Gregory Fortunoff now beneficially owns 160,000 shares, representing approximately 0.96% of the outstanding common stock, held by his wife.
• Scott Fortunoff no longer beneficially owns any shares of the Issuer.
• Gregory Fortunoff previously purchased securities with approximately $336,000 of working capital.
• Both individuals engaged in substantial sales of FAT Brands securities during the 60 days prior to the filing, with Gregory Fortunoff selling approximately 635,260 shares and Scott Fortunoff selling approximately 235,930 shares.

Sentiment

Score: 3

Explanation: The substantial reduction in insider ownership and significant selling activity by the Fortunoff brothers is a bearish signal, indicating a potential lack of confidence in the company's future prospects from these key individuals.

Negatives

• Significant reduction in beneficial ownership by key insiders, falling below the 5% reporting threshold.
• Extensive sales of shares by both Gregory and Scott Fortunoff over the past 60 days, indicating a substantial divestment.

Risks

• The market may interpret the substantial insider selling as a lack of confidence in the company's future prospects.
• Increased selling pressure on the stock due to the volume of shares offloaded by the reporting persons could negatively impact share price.

Future Outlook

Not applicable as this filing primarily reports changes in beneficial ownership and does not provide forward-looking statements or guidance from the company.

Industry Context

This filing reflects a significant reduction in insider ownership, which can be a notable event in the restaurant industry, often signaling a shift in investor confidence or personal portfolio rebalancing. While not directly tied to broader industry trends, such insider activity is closely watched by investors assessing company-specific sentiment within the sector.

Stakeholder Impact

• Shareholders may perceive the significant insider selling as a negative indicator, potentially leading to decreased investor confidence and downward pressure on the stock price.

Key Dates

Recommendation

The substantial insider selling by the Fortunoff brothers, leading to their beneficial ownership dropping below 5%, is a strong bearish signal. Such a significant reduction in a major shareholder's stake often indicates a lack of confidence in the company's future performance or valuation, prompting a seasoned investor to consider selling their holdings.

Keywords

FAT Brands, Fortunoff, Schedule 13D, Insider Selling, Stock Ownership, Common Stock, Restaurant Industry