Twin Hospitality Group Inc 8-K, filed Jul 30, 2025
Twin Hospitality Group Inc. (TWNPQ)
8-K
2025-07-30
For: 2025-07-30
View Original
Added on
April 06, 2026
About this 8-K
Twin Hospitality Group Inc filed this 8-K on July 30, 2025.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 30, 2025
(Exact name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||
(Address of Principal Executive Offices) | (Zip Code) | ||||||||||
Registrant’s Telephone Number, Including Area Code: (972 ) 941-3150
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On July 30, 2025, Twin Hospitality Group Inc. (the “Company”) issued a press release announcing its financial results for the thirteen-week week period ended June 29, 2025. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference.
The Company also hosted a conference call on July 30, 2025 in which the financial results were discussed. A replay is available until Wednesday, August 13, 2025 and can be accessed by dialing 1-844-512-2921 from the U.S. or 1-412-317-6671 internationally. The passcode is 13754155.
The webcast is available at www.twinpeaksrestaurant.com under the “Investors” section.
The information furnished with this report, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Such information may be incorporated by reference in another filing under the Securities and Exchange Act of 1934 or the Securities Act of 1933 only if, and to the extent that, such subsequent filing specifically references such information.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit Number | Description | |||||||
| 99.1 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FAT Brands Inc. | |||||
| Date: July 30, 2025 | /s/ Kenneth J. Kuick | ||||
| Kenneth J. Kuick | |||||
Interim Chief Executive Officer and Chief Financial Officer | |||||
Exhibit 99.1
TWIN HOSPITALITY GROUP INC. REPORTS FISCAL SECOND QUARTER 2025 FINANCIAL RESULTS
Hosting conference call and webcast today at 5:15 PM ET
DALLAS (July 30, 2025) – Twin Hospitality Group Inc. (NASDAQ: TWNP) (“Twin Peaks” or the “Company”) today reported financial results for the fiscal second quarter ended June 29, 2025.
“I am honored to join Twin Hospitality Group as Chief Executive Officer, bringing three decades of leadership experience in the restaurant industry. Since stepping into the role in May, I have spent time in the field listening to our teams, understanding the business firsthand and shaping a focused strategy for growth. While our second quarter results reflect some short-term pressure, we are acting with urgency around six clear priorities: focusing on the fundamentals of great operations, reducing complexity and eliminating redundant systems, sharpening cost discipline across the business, streamlining and strengthening our menu offerings, taking a measured, market-informed approach to pricing and positioning the company to continue its dynamic growth. These steps are the foundation for improving execution, rebuilding momentum and delivering long-term value,” said Kim Boerema, Chief Executive Officer and President of Twin Hospitality Group Inc.
“Our development pipeline remains a key asset as we execute our long-term growth strategy. We are on track to open a franchised Twin Peaks lodge in Fayetteville, North Carolina by year-end, our third conversion from Smokey Bones to Twin Peaks, with two additional company-owned conversions planned for early 2026. Notably, our converted locations deliver significantly higher volumes than they generated as Smokey Bones. With nearly 100 signed franchise agreements and continued strong demand from existing partners, we remain confident in our ability to expand efficiently and deliver attractive returns through both new builds and conversions,” said Ken Kuick, Chief Financial Officer of Twin Hospitality Group Inc.
Highlights for Fiscal Second Quarter 2025
•Total revenue decreased 4.1% to $87.8 million compared to $91.6 million
◦Twin Peaks system-wide sales increased 0.3%
◦Twin Peaks same-store sales declined 4.4%
•Loss from operations of $11.6 million compared to income from operations of $1.4 million
•Net loss of $20.8 million compared to $10.7 million
•Restaurant contribution margin(1) of 11.8% (Twin Peaks 17.7% and Smokey Bones 4.9%) compared to 13.4% (Twin Peaks 18.0% and Smokey Bones 9.0%)
•Adjusted EBITDA(1) of $5.2 million compared to $7.0 million
(1)Restaurant contribution margin and Adjusted EBITDA are non-GAAP measures defined below, under “Non-GAAP Measures.” Reconciliations of operating income (loss) to restaurant contribution margin and net loss to adjusted EBITDA are included in the accompanying financial tables.
Summary of Second Quarter 2025 Financial Results
Total revenue decreased $3.7 million, or 4.1%, in the fiscal second quarter of 2025, to $87.8 million compared to $91.6 million in the same fiscal period of 2024, driven by the closure of five underperforming Smokey Bones locations, the temporary closure of one Smokey Bones location for conversion into a Twin Peaks lodge and lower same-store sales, partially offset by revenues generated by our new Twin Peaks lodges.
Costs and Expenses
Food and beverage cost decreased $1.4 million, or 6.1%, to $21.5 million, compared to $22.9 million in the same period of the prior year, primarily due to lower same store sales, partially offset by increases in the price of food ingredients. As a percentage of restaurant sales, food and beverage cost was 27.1% in 2025 compared to 27.4% in 2024.
Labor and benefits cost decreased $1.1 million, or 4.3%, to $25.3 million, compared to $26.4 million in the same period of the prior year, primarily due to lower same store sales, partially offset by wage inflation. As a percentage of restaurant sales, labor and benefits cost was 31.8% in 2025 compared to 31.6% in 2024.
Other Expense, Net
Other expense, net was $11.3 million in the second quarter of 2025, compared to $12.2 million in the same period of the prior year, and in each year, other expense, net consisted primarily of interest expense.
Key Financial Definitions
New store openings - The number of new store openings reflects the number of stores opened during a particular reporting period. The total number of new stores per reporting period and the timing of stores openings has, and will continue to have, an impact on our results.
Same-store sales growth - Same-store sales growth reflects the change in year-over-year sales for the comparable store base, which we define as the number of stores open and in the Twin Hospitality Group system for at least eighteen months. For stores that were temporarily closed, sales in the current and prior period are adjusted accordingly. Given our focused marketing efforts and public excitement surrounding each opening, new stores often experience an initial start-up period with considerably higher than average sales volumes, which subsequently decrease to stabilized levels after three to six months.
System-wide sales growth - System wide sales growth reflects the percentage change in sales in any given fiscal period compared to the prior fiscal period for all stores.
Conference Call and Webcast
Twin Hospitality Group Inc. will host a conference call and webcast to discuss its fiscal second quarter 2025 financial results today at 5:15 PM ET. Hosting the conference call and webcast will be Kim Boerema, Chief Executive Officer and President, and Ken Kuick, Chief Financial Officer.
The conference call can be accessed live over the phone by dialing 1-877-407-0792 from the U.S. or 1-201-689-8263 internationally. A replay will be available after the call until Wednesday, August 13, 2025, and can be accessed by dialing 1-844-512-2921 from the U.S. or 1-412-317-6671 internationally. The passcode is 13754155. The webcast will be available at www.twinpeaksrestaurant.com under the “Investors” section and will be archived on the site shortly after the call has concluded.
About Twin Hospitality Group Inc.
Twin Hospitality Group Inc. (NASDAQ: TWNP) is a restaurant company that strategically develops and operates and franchises specialty casual dining restaurant concepts with a goal to redefine the casual dining category with its experiential driven brands, Twin Peaks and Smokey Bones. Twin Peaks, known as the ultimate sports lodge, is an award-winning restaurant and sports bar brand with 114 locations across 27 states and Mexico and is known for its made-from-scratch food, 29-degree draft beer, innovative cocktail program and sports on wall-to-wall televisions. Smokey Bones is a full-service, meat-centric restaurant brand and concept with 51 locations, across 16 states specializing in ribs and a variety of other slow-smoked, fire-grilled and seared meats, along with a full bar. For more information, please visit www.twinpeaksrestaurant.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the future financial and operating results of the Company, the timing and performance of new store openings, future reductions in expenses and our pipeline of new store locations. Forward-looking statements generally use words such as “expect,” “foresee,” “anticipate,” “believe,” “project,” “should,” “estimate,” “will,” “plans,” “forecast,” and similar expressions, and reflect our expectations concerning the future. Forward-looking statements are subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are difficult to predict and beyond our control, which could cause our actual results to differ materially from the results expressed or implied in such forward-looking statements. We refer you to the documents that we file from time to time with the Securities and Exchange Commission, such as our reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of these and other risks and uncertainties that could cause our actual results to differ materially from our current expectations and from the forward-looking statements contained in this press release. We undertake no obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of this press release.
Non-GAAP Measures (Unaudited)
This press release includes the non-GAAP financial measures of EBITDA, adjusted EBITDA, Restaurant-Level Contribution and Restaurant-Level Contribution Margin.
EBITDA is defined as earnings before interest, taxes, and depreciation and amortization. We use the term EBITDA, as opposed to income (loss) from operations, as it is widely used by analysts, investors, and other interested parties to evaluate companies in our industry. We believe that EBITDA is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate to business performance. EBITDA is not a measure of our financial performance or liquidity that is determined in accordance with generally accepted accounting principles (“GAAP”), and should not be considered as an alternative to net loss as a measure of financial performance or cash flows from operations as measures of liquidity, or any other performance measure derived in accordance with GAAP.
Adjusted EBITDA is defined as EBITDA (as defined above), excluding expenses related to acquisitions, refranchising losses, impairment charges, and certain non-recurring or non-cash items that the Company does not believe directly reflect its core operations and may not be indicative of the Company’s recurring business operations.
Restaurant-Level Contribution represents company-owned restaurant sales less restaurant operating costs, which consist of food and beverage costs, labor and benefits costs and other operating costs. Restaurant-Level Contribution Margin represents Restaurant-Level Contribution as a percentage of company-owned restaurant sales. Restaurant-Level Contribution and Restaurant-Level Contribution Margin are neither required by, nor presented in accordance with GAAP. Restaurant-Level Contribution and Restaurant-Level Contribution Margin are not intended to be measures of free cash flow available for our management’s discretionary use, as these metrics do not consider certain cash requirements such as interest payments, tax payments and debt service requirements. Additionally, Restaurant-Level Contribution and Restaurant-Level Contribution Margin exclude general and administrative expenses, advertising expenses, pre-opening expenses and depreciation and amortization on restaurant property and equipment, which are essential to support the operations and development of our company-owned restaurants. The Company is presenting Restaurant-Level Contribution and Restaurant-Level Contribution Margin because it believes that they are important tools for investors and analysts because they are widely-used metrics within the restaurant industry to evaluate restaurant-level productivity, efficiency and performance.
Reconciliations of net loss presented in accordance with GAAP to EBITDA, adjusted EBITDA and adjusted net loss are set forth in the tables below.
Investor Relations:
ICR
Michelle Michalski
ir@twinpeaksrestaurant.com
Media Relations:
Destinee Rollins
destinee.rollins@tprest.com
972-342-5902
Twin Hospitality Group Inc. Consolidated Statements of Operations
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||||||||||||||||||||
| June 29, 2025 | June 30, 2024 | June 29, 2025 | June 30, 2024 | ||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||
| Restaurant sales | $ | 79,625 | 90.6 | % | $ | 83,706 | 91.4 | % | $ | 158,028 | 90.3 | % | $ | 166,995 | 90.9 | % | |||||||||||||||||||
| Franchise revenue | 8,221 | 9.4 | % | 7,888 | 8.6 | % | 16,923 | 9.7 | % | 16,660 | 9.1 | % | |||||||||||||||||||||||
| Total revenue | 87,846 | 100.0 | % | 91,594 | 100.0 | % | 174,951 | 100.0 | % | 183,655 | 100.0 | % | |||||||||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||||||||||||||
| Restaurant operating costs | |||||||||||||||||||||||||||||||||||
Food and beverage costs (1) | 21,544 | 27.1 | % | 22,949 | 27.4 | % | 42,778 | 27.1 | % | 45,341 | 27.2 | % | |||||||||||||||||||||||
Labor and benefits cost (1) | 25,287 | 31.8 | % | 26,411 | 31.6 | % | 50,539 | 32.0 | % | 53,020 | 31.7 | % | |||||||||||||||||||||||
Other operating costs (1) | 17,062 | 21.4 | % | 16,649 | 19.9 | % | 33,907 | 21.5 | % | 33,008 | 19.8 | % | |||||||||||||||||||||||
Occupancy costs (1) | 6,342 | 8.0 | % | 6,599 | 7.9 | % | 12,668 | 8.0 | % | 13,233 | 7.9 | % | |||||||||||||||||||||||
| Advertising expense | 5,056 | 5.8 | % | 4,785 | 5.2 | % | 10,135 | 5.8 | % | 10,752 | 5.9 | % | |||||||||||||||||||||||
| Pre-opening expense | 178 | 0.2 | % | 64 | 0.1 | % | 695 | 0.4 | % | 92 | 0.1 | % | |||||||||||||||||||||||
| General and administrative expense | 19,894 | 22.6 | % | 6,902 | 7.5 | % | 26,708 | 15.3 | % | 13,894 | 7.6 | % | |||||||||||||||||||||||
| Depreciation and amortization | 4,072 | 4.6 | % | 5,841 | 6.4 | % | 10,166 | 5.8 | % | 11,587 | 6.3 | % | |||||||||||||||||||||||
| Total costs and expenses | 99,435 | 113.2 | % | 90,200 | 98.5 | % | 187,596 | 107.2 | % | 180,927 | 98.5 | % | |||||||||||||||||||||||
| Income (loss) from operations | (11,589) | (13.2) | % | 1,394 | 1.5 | % | (12,645) | (7.2) | % | 2,728 | 1.5 | % | |||||||||||||||||||||||
| Other (expense) income, net | |||||||||||||||||||||||||||||||||||
| Interest expense | (11,456) | (13.0) | % | (12,004) | (13.1) | % | (22,278) | (12.7) | % | (22,412) | (12.2) | % | |||||||||||||||||||||||
| Other (expense) income, net | 142 | 0.2 | % | (221) | (0.2) | % | 173 | 0.1 | % | (289) | (0.2) | % | |||||||||||||||||||||||
| Total other expense, net | (11,314) | (12.9) | % | (12,225) | (13.3) | % | (22,105) | (12.6) | % | (22,701) | (12.4) | % | |||||||||||||||||||||||
| Loss before income tax provision | (22,903) | (26.1) | % | (10,831) | (11.8) | % | (34,750) | (19.9) | % | (19,973) | (10.9) | % | |||||||||||||||||||||||
| Income tax provision | (2,119) | (2.4) | % | (99) | (0.1) | % | (1,854) | (1.1) | % | (20) | — | % | |||||||||||||||||||||||
| Net loss | $ | (20,784) | (23.7) | % | $ | (10,732) | (11.7) | % | $ | (32,896) | (18.8) | % | $ | (19,953) | (10.9) | % | |||||||||||||||||||
(1) As a percentage of company-owned restaurant sales
Twin Hospitality Group Inc. Consolidated EBITDA and Adjusted EBITDA Reconciliation
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||||||||
| (in thousands) | June 29, 2025 | June 30, 2024 | June 29, 2025 | June 30, 2024 | |||||||||||||||||||
| Net loss | $ | (20,784) | $ | (10,732) | $ | (32,896) | $ | (19,953) | |||||||||||||||
| Interest expense, net | 11,456 | 12,004 | 22,278 | 22,412 | |||||||||||||||||||
| Income tax provision | (2,119) | (99) | (1,854) | (20) | |||||||||||||||||||
| Depreciation and amortization | 4,072 | 5,841 | 10,166 | 11,587 | |||||||||||||||||||
| EBITDA | (7,375) | 7,014 | (2,306) | 14,026 | |||||||||||||||||||
| Equity based compensation | 12,552 | — | 12,552 | 202 | |||||||||||||||||||
| Adjusted EBITDA | $ | 5,177 | $ | 7,014 | $ | 10,246 | $ | 14,228 | |||||||||||||||
Twin Hospitality Group Inc. Restaurant-Level Contribution and Restaurant-Level Contribution Margin Reconciliation
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||||||||
| (in thousands) | June 29, 2025 | June 30, 2024 | June 29, 2025 | June 30, 2024 | |||||||||||||||||||
| Income (loss) from operations | $ | (11,589) | $ | 1,394 | $ | (12,645) | $ | 2,728 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Royalties and franchise fees | (5,259) | (5,211) | (10,516) | (10,207) | |||||||||||||||||||
| Plus: | |||||||||||||||||||||||
| General and administrative expense | 19,894 | 6,902 | 26,708 | 13,894 | |||||||||||||||||||
| Company-owned restaurant advertising expense | 2,094 | 2,217 | 3,728 | 4,299 | |||||||||||||||||||
| Depreciation and amortization | 4,072 | 5,841 | 10,166 | 11,587 | |||||||||||||||||||
| Pre-opening expense | 178 | 64 | 695 | 92 | |||||||||||||||||||
| Restaurant-level contribution | $ | 9,390 | $ | 11,207 | $ | 18,136 | $ | 22,393 | |||||||||||||||
| Company-owned restaurant sales | $ | 79,625 | $ | 83,706 | $ | 158,028 | $ | 166,995 | |||||||||||||||
| Restaurant-Level Contribution Margin | 11.8 | % | 13.4 | % | 11.5 | % | 13.4 | % | |||||||||||||||