By Colin Kellaher

Shares of FAT Brands and Twin Hospitality Group tumbled in premarket trading Tuesday after the restaurant operators filed for chapter 11 bankruptcy.

Beverly Hills, Calif.-based FAT, whose restaurant concepts include Fatburger and Johnny Rockets, owns about 95% of Twin Hospitality, the Dallas-based operator of the Twin Peaks and Smokey Bones casual-dining chains.

Both companies late Monday said they plan to use the bankruptcy process to deleverage their balance sheets and support continued growth of their brands, adding that their restaurants will remain open during the proceedings.

Shares of FAT, which closed Monday at 39.2 cents, were recently down 43% to 22.4 cents in premarket trading, while Twin Hospitality shares, which ended Monday's session at 53.1 cents, were down 40% to 31.7 cents.

Shareholders are generally wiped out in bankruptcy cases, and the companies said in filings with the Securities and Exchange Commission that they expect holders of their common shares could experience a complete or significant loss on their investment as a result of the bankruptcy process.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

January 27, 2026 06:48 ET (11:48 GMT)

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