Financial Data and Key Metrics Changes - System-wide sales decreased by 3.3% to $181.9 million compared to the previous year [19] - Total revenue for the quarter was $87.8 million, a 4.1% decrease from $91.6 million in the prior year [20] - Net loss for the quarter was $20.8 million, compared to a loss of $10.7 million in the previous year [26] - Adjusted EBITDA decreased to $5.2 million from $7 million in the prior year [26] Business Line Data and Key Metrics Changes - Twin Peaks revenue increased by 5.8% to $51.1 million, driven by new lodge openings, despite a decline in same-store sales [20] - Smoky Bones revenue decreased by 15.2% to $36.7 million due to strategic conversions and temporary closures [21] - Restaurant level contribution margin for Twin Peaks decreased to 17.7% from 18% in the prior year [25] - Smoky Bones restaurant level contribution margin decreased to 4.9% from 9% in the prior year [25] Market Data and Key Metrics Changes - The second quarter experienced softer sales and traffic due to less favorable sports calendaring, impacting engagement [20] - The absence of key market teams in the NBA and NHL playoffs contributed to lower sales [20] Company Strategy and Development Direction - The company is focusing on operational excellence, reducing complexity, and enhancing guest experience [7][8] - A streamlined menu is being tested to improve execution and speed of service [10] - The company plans to accelerate growth with a robust pipeline of 100 committed lodges, with 75% from existing franchise partners [14] - The strategy includes positioning Twin Peaks as a premier destination for sports events and enhancing community engagement [15][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's strength and the potential for growth despite current challenges [17] - The company anticipates stronger revenue gains in the second half of the year due to an improved sports calendar [14][16] - Management is committed to protecting the brand's core values while exploring new opportunities for innovation [17] Other Important Information - The US Department of Justice dropped all charges against FAT Brands, the parent company, which is seen as a positive development [18] - Twin Peaks ranked 97th on the 2025 Technomic Top 500 list of the largest restaurant chains in the US [29] - The company raised over $100,000 for Texas flood relief efforts, highlighting its commitment to community support [29] Q&A Session Summary Question: What is the outlook for Smoky Bones over the next six months? - Management indicated there will be moderate changes, with minimal adjustments expected until performance assessments are completed [35][36] Question: What is the increase in General and Administrative (G&A) expenses attributed to? - The increase in G&A expenses was primarily due to equity grants following the public listing, which is expected to decrease significantly going forward [41][42] Question: Is there room for improvement in store-level margins? - Management expressed confidence in finding improvements in sales and bottom-line performance as the sports calendar improves [43][44]