Sadot Group signs $4.25 million deal to sell restaurant chains

Published 03/09/2025, 14:14
Sadot Group signs $4.25 million deal to sell restaurant chains

BURLESON, Texas - Sadot Group Inc. (NASDAQ:SDOT), currently trading at a market capitalization of $9.07 million and according to InvestingPro analysis trading below its Fair Value, announced Wednesday it has signed a letter of intent to sell its Pokemoto and Muscle Maker Grill restaurant chains for $4.25 million, completing the company’s exit from the restaurant business.

The transaction includes a $100,000 deposit and calls for $2.5 million in cash at closing, with the remaining $1.75 million structured as secured notes payable over 72 months, according to a company press release.

Sadot Group, which describes itself as an emerging player in the global food supply chain sector, expects to finalize the deal within 30-45 days, pending customary closing conditions and completion of definitive agreements.

"The signing of the LOI and deposit marks a significant milestone for Sadot," said CEO Chagay Ravid, who noted the company will now focus exclusively on its agri-food business.

The company stated it anticipates additional cost savings in areas including insurance, legal, travel and human resources following the divestiture.

Sadot Group’s core operations include global agri-commodity trading of products such as soybean meal, wheat and corn, along with farm operations producing grains and tree crops in Southern Africa.

The company sources agricultural commodities from producing regions including the Americas, Africa and the Black Sea, delivering to markets in Southeast Asia, China and the Middle East/North Africa region.

In other recent news, Sadot Group Inc reported its Q2 2025 earnings with a notable 34% year-over-year decline in revenue, bringing in $114.4 million. Despite the decrease in revenue, Sadot Group managed to maintain a positive net income of $400,000. The company also achieved an improvement in its gross profit margin by 100 basis points. These financial results reflect the company’s strategic pivot, although specific details about this strategy were not disclosed in the earnings call. Additionally, analysts have not publicly upgraded or downgraded the stock following this earnings report. Investors may be keeping a close eye on Sadot Group’s next steps as it navigates these financial challenges.

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