Sadot Group Inc. Seeks Strategic Alternatives for its Restaurant Division by Restructuring to Reduce Costs and Strengthen the Balance Sheet
*Sadot Group Inc. to close underperforming units and refranchise company-owned units in pivot to a franchise-driven model*
*FORT WORTH, TX / ACCESSWIRE / August 3, 2023 /* Sadot Group Inc. (NASDAQ:SDOT) (the "Sadot Group" or the "Company"), an emerging player in the global food supply chain sector, today shared an update focusing on its legacy restaurant concepts.
"As we progress in our strategic pivot towards the global food supply chain sector, we believe it necessary to restructure our restaurant subsidiaries," stated Sadot Group's CEO, Michael Roper. "We will reduce restaurant operating expense and overhead as well as working capital demands by closing underperforming units while refranchising (selling) most of our remaining company-owned units. We will shift to a franchise, royalty-generating model focused on our successful Pokémoto concept. Our rapidly expanding roster of Pokémoto franchisees underscores the strong interest and confidence in the Pokémoto brand. Franchisees of Muscle Maker Grill restaurants will have the option to remain as Muscle Maker Grills, convert to Pokémoto or become dual-branded Pokémoto/Muscle Maker Grill units. Lastly, we will seek strategic alternatives for our Superfit Foods concept. These actions will allow us to strengthen our balance sheet and reallocate funds towards growing the agri-foods supply chain business, reinforcing our commitment to increasing shareholder value by focusing on our path to profitability, market diversification, and a strengthened brand presence."
The following are facts related to the Sadot Group's restaurant subsidiaries:
*Pokémoto Hawaiian Poké*
· There are 35 Pokémoto units open (24 franchises, 11 company-owned), spanning 15 states with over 55 franchise locations sold but not yet open
· Company-owned units will be refranchised (to be sold to new or existing franchisees)
*Muscle Maker Grill (MMG)*
· The Company has successfully converted 3 MMG restaurants, 1 to Pokémoto, and 2 to dual-branded Pokémoto/Muscle Maker Grill units. The remaining company-owned MMG unit will be refranchised.
· Franchisees for the remaining 9 MMG units will be given the option to remain as MMG, convert to Pokémoto or dual brand (MMG/Pokémoto).
*Superfit Foods*
· The Company is seeking strategic alternatives for its subscription-based fresh meal service, with 30+ points of distribution plus in-home and national delivery
*About Sadot Group Inc.*
Sadot Group Inc., formerly known as Muscle Maker Inc., has rapidly established itself as an emerging player in the global food supply chain. Sadot provides innovative and sustainable supply chain solutions that address the world's growing food security challenges.
The Sadot Group connects producers and consumers across the globe, sourcing agri-commodity products from producing geographies such as the Americas, Africa and the Black Sea and delivering to markets in Southeast Asia, China and the Middle East/North Africa region.
The Sadot Group currently operates within three key verticals of the global food supply chain including 1) global agri-commodity origination and trading operations for food/feed products such as soybean meal, wheat and corn, 2) farm operations producing grains and tree crops in Southern Africa, and 3) food service operations with more than 50 restaurants across the U.S.
The Sadot Group is headquartered in Ft. Worth, Texas with subsidiary operations in Miami, Dubai, Singapore, Kyiv and Zambia. The Company continues to grow in size, diversity of operations, as well as in human and financial capital, but the principles that guided the Company remain the same - sourcing and providing healthier foods. For more information please visit www.sadotgroupinc.com.
*Forward-Looking Statements*
This press release may include "forward-looking statements" pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. To the extent that the information presented in this press release discusses financial projections, information, or expectations about our business plans, results of operations, products, or markets, or otherwise makes statements about future events, such statements are forward-looking. Such forward-looking statements can be identified by the use of words such as "should", "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," and "proposes." Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" and elsewhere in documents that we file from time to time with the SEC. Forward-looking statements speak only as of the date of the document in which they are contained, and Sadot Group, Inc., does not undertake any duty to update any forward-looking statements except as may be required by law.
*Investor Relations:*
Frank Pogubila
SVP
Integrous Communications
W - 951.946.5288
E - IR@sadotco.com
*SOURCE: *Sadot Group, Inc.
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