Core Insights - Twin Hospitality Group Inc. reported a solid performance in Q3 2025, with a restaurant-level contribution margin of 17.0% and year-over-year sales growth in core markets despite regional challenges [2][10] - The company is focusing on a conversion strategy that has shown significant results, with Twin Peaks locations outperforming former Smokey Bones operations [3] Financial Performance - Total revenue decreased by $1.3 million, or 1.6%, to $82.3 million compared to $83.7 million in Q3 2024, primarily due to the closure of 11 underperforming Smokey Bones locations and lower same-store sales [6][10] - Twin Peaks same-store sales declined by 4.1%, while system-wide sales decreased by 1.4% [10] - The company reported a loss from operations of $13.4 million, compared to a loss of $3.6 million in the same period last year [10] Costs and Expenses - Food and beverage costs decreased by $0.5 million, or 2.3%, to $20.3 million, representing 27.4% of restaurant sales, slightly down from 27.5% in the previous year [7][10] - Labor and benefits costs decreased by $0.9 million, or 3.5%, to $23.9 million, accounting for 32.1% of restaurant sales, down from 32.8% [8][10] - General and administrative expenses surged by $12.3 million, or 172.1%, to $19.5 million, largely due to store closure costs and higher non-cash share-based compensation [9][10] Profitability Metrics - The restaurant contribution margin was reported at 9.6%, with Twin Peaks at 17.0% and Smokey Bones at (0.3%) [10][28] - Adjusted EBITDA for the quarter was $3.0 million, an increase from $2.3 million in the same period last year [10][26]