Twin Hospitality Group Inc.

What they do

The company operates two specialty casual dining concepts: Twin Peaks, a sports-lodge themed chain known for made-from-scratch food and 29-degree draft beer, and Smokey Bones, a meat-centric brand specializing in ribs and slow-smoked meats. As of September 28, 2025, the total restaurant footprint was 159 locations: 72 domestic franchised Twin Peaks, seven international franchised Twin Peaks in Mexico, 35 domestic company-owned Twin Peaks, and 45 domestic company-owned Smokey Bones.

Revenue drivers

• Company-owned restaurant sales — Sales of food and beverages at 35 domestic company-owned Twin Peaks and 45 domestic company-owned Smokey Bones restaurants generated $74.4 million, or 90.3% of total revenue, in the quarter ended September 28, 2025.
• Franchise revenue — Royalties, franchise fees and advertising revenue from franchised Twin Peaks restaurants generated $8.0 million, or 9.7% of total revenue, in the quarter ended September 28, 2025.
• Twin Peaks — System-wide sales for Twin Peaks restaurants were $573.4 million in fiscal 2024.
• Smokey Bones — System-wide sales for Smokey Bones restaurants were $158.2 million in fiscal 2024.

Recent performance

Latest quarterly revenue was $82.3 million for the quarter ended September 28, 2025, down from $83.7 million in the prior-year quarter. Company-owned restaurant sales were $74.4 million (90.3% of revenue) and franchise revenue was $8.0 million (9.7% of revenue). Food and beverage costs were 27.4% of company-owned sales, labor and benefits were 32.1%, and other operating costs were 22.9%. The company reported a net loss and negative shareholder equity of $92.1 million as of September 28, 2025, with total liabilities of $608.9 million exceeding total assets of $516.8 million.

Strategy

Management's growth plan is driven by a pipeline of nearly 100 signed franchised units as of September 28, 2025, down from more than 100 signed units as of December 29, 2024. The company aims to have approximately 75% to 80% of anticipated new restaurant openings be franchised. The company became independent through a spin-off from FAT Brands completed on January 29, 2025, and now operates as a publicly traded reporting company.

Risks

• Growth strategy execution — If the company fails to successfully implement its growth strategy, including opening new domestic and international company-owned and franchised restaurants on a timely basis, its ability to increase revenues could be materially and adversely affected.
• Franchisee dependence — The business, results of operations, and financial condition are closely tied to the success of its franchisees and franchised restaurants.
• Franchisee recruitment — If the company fails to identify, recruit and contract with a sufficient number of qualified franchisees, its ability to open new franchised restaurants will be limited.
• Bankruptcy and delisting — The company reported a bankruptcy or receivership event on January 27, 2026, a delisting notice on January 30, 2026, and negative shareholder equity of $92.1 million as of September 28, 2025.

Outlook

Management states the company has a robust pipeline of nearly 100 signed franchised units as of September 28, 2025, providing visibility into near-term growth, with a goal of approximately 75% to 80% of new openings being franchised. However, the company has reported a bankruptcy or receivership event in January 2026 and a delisting notice, and its quarterly revenue declined year-over-year in the quarter ended September 28, 2025.