Stock Market

Story: Sadot Group Stock Craters 72% After Fugazi Research Fires Short-Seller Salvo

By Dan Saada

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Fugazi's Core Argument: Nothing Left to Trade. Fugazi Research's main shot at Sadot is what the firm calls "monkey-branching" — the company keeps…

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The Balance Sheet Is a Mess. The Q1 filings don't leave much room for optimism. Sadot's shareholders' deficit sits at $58.

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Sadot Group got hit hard. Shares of the Nasdaq-listed agri-food company plunged 72% from Tuesday's close of $40, trading around $14 by late morning in New York — and briefly…

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The sell-off didn't come out of nowhere. Short-seller Fugazi Research dropped a report tearing into the company's fundamentals, flat-out saying Sadot lacks basic investment value…

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Fugazi Research's main shot at Sadot is what the firm calls "monkey-branching" — the company keeps swinging from one unviable business model to the next without ever landing…

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The backstory makes it worse. Sadot started life as Muscle Maker Grill, a fast-casual restaurant chain.

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Since then, Sadot has been shedding assets fast. In December 2025, it sold off its restaurant brands and lost a food farm to a court judgment.

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The Q1 filings don't leave much room for optimism. Sadot's shareholders' deficit sits at $58.4 million. Total liabilities came in at $60.8 million, against total assets of just $2.

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Management has been scrambling. The company picked up a UAE software firm and trading platform for roughly $12 million, paid mostly in stock.

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Read also: Hedge Funds Hold 138,000 Yen Short Contracts, Most Bearish Bet Since 2007

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To stay on Nasdaq, Sadot has executed multiple reverse stock splits. And it's still not in the clear — the company received a formal warning for failing to meet Nasdaq's minimum…

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The 52-week range tells its own story: $460 on the high end, $2.63 on the low. That spread is wild, even by small-cap standards.

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Short-sellers targeting micro-cap and small-cap companies with murky business models isn't new.

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What comes next is probably the Q2 earnings release. Fugazi Research expects it to confirm what the report already claims: that Sadot has no operating revenue-generating business…

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The company hasn't publicly pushed back on the short-seller's accusations, at least not in any detail captured in available disclosures. No statement, no rebuttal.

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