Sadot Group Inc. (SDOT) reports earnings

The report was filed on March 11, 2025

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Sadot Group Inc. (SDOT-1.15%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.

The filing reports that Sadot Group Inc., formerly known as Muscle Maker, Inc., has transitioned from a U.S.-centric restaurant business to a global agri-foods supply chain organization. The company operates through two segments: Sadot Agri-Foods and Sadot Food Services.

Sadot Agri-Foods, the largest operating unit, is involved in farming, commodity trading, and shipping food and feed commodities globally. This segment competes with major commodity companies and operates a 5,000-acre farm in Zambia.

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Sadot Food Services, which includes the Pokémoto and Muscle Maker Grill concepts, has been identified as held for sale and reported as discontinued operations. The company has refranchised or closed its corporate-owned restaurants.

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For the year ended December 31, 2024, Sadot Group reported total commodity sales of $700.9 million, a slight decrease from $717.5 million in the previous year. The cost of goods sold was $695.8 million, resulting in a gross profit of $5.1 million.

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The company reported a net income of $3.7 million for the year, compared to a net loss of $8.0 million in 2023. This improvement is attributed to gains on fair value remeasurement of derivative contracts and a decrease in depreciation and amortization expenses.

Sadot Group's working capital increased to $20.5 million as of December 31, 2024, from $8.3 million in the prior year, supported by a decrease in accounts payable and an increase in other current assets.

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The filing outlines various financial agreements, including a Standby Equity Purchase Agreement with Yorkville, allowing the company to sell up to $25 million of its shares, and a forward purchase contract for carbon offsets.

Sadot Group's management continues to focus on expanding its international agri-foods supply chain operations while divesting its legacy restaurant business.

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This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Sadot Group Inc. annual 10-K report dated March 11, 2025. To report an error, please email earnings@qz.com.