- Nasdaq halted trading in Sadot Group (SDOT) five times on Wednesday as shares collapsed up to 72% to an intraday low of $11.01.
- A report from short-seller Fugazi Research alleges the company has “no meaningful fundamental value,” claiming its business model is “monkey-branching” with no operating revenue.
- The company’s Q1 filing shows $60.8 million in liabilities against just $2.4 million in assets, with auditors expressing “substantial doubt” about its ability to continue as a going concern.
Nasdaq repeatedly halted trading in Sadot Group Wednesday morning as its shares plunged as much as 72% from yesterday’s close. The collapse followed a scathing report from short-seller Fugazi Research, which declared that the company has “no meaningful fundamental value and is unsuitable for investment.”
The Nasdaq-listed agri-food company, once a burger chain known as Muscle Maker Grill, has seen its stock trade near $14, down roughly 65% from Tuesday’s $40 close. Each plunge tripped Nasdaq’s circuit breakers, with SDOT experiencing halted trading on roughly a dozen business days since early June.
Fugazi Research’s report derided Sadot Group’s serial reinventions, reading, “Raise Money, Change the Story, Sell Nothing, Repeat.” The short-seller’s central allegation is that after all pivots “there is no longer an operating business generating revenue.”
Sadot Group began as Muscle Maker, Inc., a restaurant operator, rebranding in 2023 as a global agricultural commodities trader. Its trading arm booked $132 million in revenue in Q1 2025, but for Q1 2026 that division reported $0.
The company sold its Muscle Maker Grill and Pokémoto restaurant brands in December 2025, losing a food farm to a court judgment the same month. It then sold its last trading unit, Sadot Latam LLC, on June 26 for just $1,000 in cash.
The company’s Q1 filing reveals total liabilities of $60.8 million against assets of $2.4 million, creating a shareholders’ deficit of $58.4 million. Management have been diluting shareholders, acquiring a UAE software company for $12 million payable in stock and taking a six-month option on a $125.5 million California real estate portfolio.
Sadot Group has executed three reverse stock splits within two years, most recently a 1-for-20 reverse split on May 27. Nasdaq has warned the company no longer meets its minimum stockholders’ equity rule and flagged it for filing late annual reports.
On August 13, Sadot Group is due to release its Q2 earnings, which Fugazi Research predicts could disclose no operating revenue. SDOT traded as high as $106 intraday on July 2 and closed Tuesday at $40, with a 52-week range spanning from $460 down to $2.63.
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