18. Reportable Operating Segments
See Note 1 – Business organization and nature of operations for descriptions of our operating segments.
The Company’s reportable segments are determined based on the management approach, consistent with the way the Chief Operating Decision Maker (CODM) evaluates financial performance and allocates resources. The CODM, identified as the Chief Executive Officer, regularly reviews discrete financial information for the Sadot Food Services and Sadot Agri-Foods segments to assess performance and make operational decisions.
The following table sets forth the results of operations for the relevant segments for the years ended December 31, 2024 and 2023:
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| For the Year Ended December 31, 2024 |
| Sadot food service | | Sadot agri-foods | | Corporate adj. | | Total segments |
| $’000 | | $’000 | | $’000 | | $’000 |
| Commodity sales | — | | | 700,937 | | | — | | | 700,937 | |
| Cost of goods sold | — | | | (695,821) | | | — | | | (695,821) | |
| Gross profit | — | | | 5,116 | | | — | | | 5,116 | |
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| Depreciation and amortization expenses | — | | | (256) | | | (3) | | | (259) | |
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| Stock-based expenses | — | | | — | | | (6,662) | | | (6,662) | |
| Sales, general and administrative expenses | — | | | (5,219) | | | (4,440) | | | (9,659) | |
| (Loss) / income from operations | — | | | (359) | | | (11,105) | | | (11,464) | |
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| Interest expense, net | — | | | (2,370) | | | (2,279) | | | (4,649) | |
| Change in fair value of stock-based compensation | — | | | — | | | 4,116 | | | 4,116 | |
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| Gain on fair value remeasurement | — | | | 17,111 | | | — | | | 17,111 | |
| Gain on sale of trading securities | — | | | 518 | | | — | | | 518 | |
| (Loss) / income before income tax | — | | | 14,900 | | | (9,268) | | | 5,632 | |
| Income tax (expense) benefit | — | | | (3) | | | — | | | (3) | |
| Net Income / (loss) from continuing operations | — | | | 14,897 | | | (9,268) | | | 5,629 | |
| Loss on discontinued operations | (1,893) | | | — | | | — | | | (1,893) | |
| Net (loss) / income | (1,893) | | | 14,897 | | | (9,268) | | | 3,736 | |
| Net loss attributable to non-controlling interest | — | | | 256 | | | — | | | 256 | |
| Net (loss) / income attributable to Sadot Group Inc. | (1,893) | | | 15,153 | | | (9,268) | | | 3,992 | |
| Total assets | 5,196 | | | 157,881 | | | 1,577 | | | 164,654 | |
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| For the Year Ended December 31, 2023 |
| Sadot food service | | Sadot agri-foods | | Corporate adj. | | Total segments |
| $’000 | | $’000 | | $’000 | | $’000 |
| Commodity sales | — | | | 717,506 | | | — | | | 717,506 | |
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| Cost of goods sold | — | | | (707,871) | | | — | | | (707,871) | |
| Gross profit | — | | | 9,635 | | | — | | | 9,635 | |
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| Depreciation and amortization expenses | — | | | (151) | | | (992) | | | (1,143) | |
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| Pre-opening expenses | — | | | (336) | | | — | | | (336) | |
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| Stock-based expenses | — | | | — | | | (6,192) | | | (6,192) | |
| Sales, general and administrative expenses | — | | | (1,552) | | | (7,416) | | | (8,968) | |
| (Loss) / income from operations | — | | | 7,596 | | | (14,600) | | | (7,004) | |
| Other income | — | | | — | | | 308 | | | 308 | |
| Interest expense, net | — | | | (52) | | | (416) | | | (468) | |
| Change in fair value of stock-based compensation | — | | | — | | | 1,339 | | | 1,339 | |
| Warrant modification expense | — | | | — | | | (958) | | | (958) | |
| Gain on fair value remeasurement | — | | | 1,491 | | | — | | | 1,491 | |
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| (Loss) / income before income tax | — | | | 9,035 | | | (14,327) | | | (5,292) | |
| Income tax (expense) benefit | — | | | — | | | 15 | | | 15 | |
| Net Income / (loss) from continuing operations | — | | | 9,035 | | | (14,312) | | | (5,277) | |
| Loss on discontinued operations | (2,765) | | | — | | | — | | | (2,765) | |
| Net (loss) / income | (2,765) | | | 9,035 | | | (14,312) | | | (8,042) | |
| Net loss attributable to non-controlling interest | — | | | 218 | | | — | | | 218 | |
| Net (loss) / income attributable to Sadot Group Inc. | (2,765) | | | 9,253 | | | (14,312) | | | (7,824) | |
| Total assets | 10,416 | | | 162,175 | | | 5,500 | | | 178,091 | |
During the year ended December 31, 2024, assets related to our Sadot Food Services segment met the criteria for classification as Assets Held for Sale. See Note 2 – Significant accounting policies and Note 3 – Assets held for sale and Note 4 – Discontinued operations for additional information.
In late 2022, Sadot Group transformed from a U.S.-centric restaurant business into a global organization focused on the Agri-Foods supply-chain. As a result, we have reevaluated and changed our operating segments late in 2023 to align with our two distinct segments. Previously we split out Muscle Maker Grill, Pokémoto, and SuperFit Foods as their own restaurant operating segments. With the transformation of our business into a global, food-focused organization, we operate the business in two distinct business segments Sadot Agri-Foods and Sadot Food Service.
The Company will continue to evaluate its operating segments and update as necessary.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.