LOS ANGELES, Aug. 25, 2025 (GLOBE NEWSWIRE) -- Twin Hospitality Group Inc. (“Twin Hospitality”) (Nasdaq: TWNP), the parent company of Twin Peaks and Smokey Bones, today announces the appointment of Andrew (Andy) Wiederhorn as Chairman of the Board of Directors, effective immediately. FAT Brands Inc. (NASDAQ: FAT) served as the parent company that executed the strategic spin-out of Twin Hospitality Group earlier this year, separating its Twin Peaks and Smokey Bones restaurant brands into Twin Hospitality Gro ...

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were $146.8 million, a 3.4% decrease from $152 million in the same quarter last year, primarily due to the closure of underperforming locations and lower same-store sales [25] - General and administrative expenses increased to $44.4 million from $29.6 million, largely due to non-cash share-based compensation related to the public listing of Twin Hospitality Group [25] - Net loss attributable to FAT Brands was $54.2 million or $3.17 per diluted share, compared to a net loss of $39.4 million or $2.43 per diluted share in the prior year quarter [26] Business Line Data and Key Metrics Changes - The closure of five underperforming Smoky Bones locations impacted revenue, while new Twin Peaks Lodges partially offset this decline [25] - Adjusted EBITDA for the quarter remained flat at $15.7 million, comparable to the previous year [26] - The snacks segment, including Great American Cookies and Marble Slab Creamery, showed consistent strength, with digital sales for Great American Cookies increasing to 25% of total sales [13][14] Market Data and Key Metrics Changes - Domestic system-wide sales outperformed international sales, although there were positive signs internationally, particularly for Fatburger locations in Canada [12][13] - The company operates approximately 2,300 locations across 49 states and 35 countries, with 80% in domestic markets and 20% internationally [7] Company Strategy and Development Direction - The growth strategy is anchored by three pillars: organic expansion, targeted acquisitions, and increasing manufacturing capacity, particularly in cookie dough production [14] - The company plans to open 100 new locations in 2025, with a robust development pipeline of approximately 1,000 locations committed by franchisees over the next five to seven years [15] - The company is also focusing on enhancing the guest experience through innovation and menu development, as well as revitalizing existing locations through a Store Refresh program [18][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future following the resolution of legal issues, which will save approximately $30 million annually in litigation costs [11][26] - There are encouraging signs of improved consumer confidence, particularly in the snack brands, while QSR brands face challenges [34][54] - The company is working towards achieving cash flow positive status in the coming quarters while continuing strategic deleveraging efforts [12][41] Other Important Information - The company has reached a settlement in the Delaware derivative cases, which is subject to court approval [6] - The Georgia production facility generated $10.3 million in sales with a 37% margin, currently operating at 45% capacity, indicating significant growth potential [21] Q&A Session Summary Question: Update on SEC civil action following DOJ announcement - Management is hopeful the SEC investigation will also conclude favorably following the DOJ case, and they have filed for recovery of legal fees through insurance [29][30] Question: Increase in G&A costs and future expectations - The increase in G&A costs is a one-time event related to the Twin Peaks spin-off, and costs are expected to decrease moving forward [30][31] Question: Timing for the rollout of the new manufacturing contract - The new manufacturing contract is currently in production and is expected to be fully rolled out within the next 30 to 60 days [32][33] Question: Observations on restaurant industry traffic - Different brand categories are experiencing varied performance, with snack brands performing well while QSR brands face challenges [34] Question: Current liquidity situation - The company has retained notes valued between $130 million and $150 million for liquidity, and is focused on identifying further savings across all brands [41][42]

Core Viewpoint - Twin Hospitality Group Inc. reported a decrease in total revenue for the fiscal second quarter of 2025, attributed to the closure of underperforming locations and lower same-store sales, while emphasizing a focused strategy for growth and operational improvement [2][6]. Financial Performance - Total revenue decreased by $3.7 million, or 4.1%, to $87.8 million compared to $91.6 million in the same period of 2024 [6][9]. - Loss from operations was $11.6 million, a decline from an income of $1.4 million in the previous year [9]. - Net loss increased to $20.8 million from $10.7 million year-over-year [9]. Cost Management - Food and beverage costs decreased by $1.4 million, or 6.1%, to $21.5 million, representing 27.1% of restaurant sales in 2025, compared to 27.4% in 2024 [7][9]. - Labor and benefits costs decreased by $1.1 million, or 4.3%, to $25.3 million, accounting for 31.8% of restaurant sales in 2025, compared to 31.6% in 2024 [8][9]. Operational Strategy - The company is focused on six priorities to enhance operations, including reducing complexity, improving cost discipline, and streamlining menu offerings [2]. - The development pipeline includes plans for new franchised locations, with a notable conversion from Smokey Bones to Twin Peaks expected to yield higher sales volumes [3]. Key Metrics - Twin Peaks same-store sales declined by 4.4%, while system-wide sales increased by 0.3% [9]. - Adjusted EBITDA for the quarter was $5.2 million, down from $7.0 million in the previous year [9][26].

Company Overview - FAT Brands Inc. is a global restaurant franchising company with a portfolio of 18 restaurant concepts and over 2,300 locations worldwide [2][3] - The company operates well-known brands such as Fatburger, Johnny Rockets, Round Table Pizza, and Twin Peaks [2][3] Legal Developments - The U.S. Attorney for the Central District of California has filed a motion to dismiss all charges against Andrew Wiederhorn and other defendants, asserting that there were no victims, losses, or crimes involved [1][2] - Andy Wiederhorn expressed gratitude towards the U.S. Attorney's Office for reviewing the case and emphasized the company's focus on growth following the dismissal of the indictment [2] Growth Prospects - With the legal matter resolved, FAT Brands is positioned for continued growth, with over 1,000 units in its development pipeline and approximately 120 signed development agreements year-to-date [2] - The company anticipates more than 100 new store openings within the current year, indicating a robust expansion strategy [2]

Group 1 - Twin Hospitality Group Inc. will host a conference call to review its second quarter 2025 financial results on July 30, 2025 at 5:15 PM ET [1] - A press release with the financial results will be issued prior to the conference call [1] - The conference call will be accessible via phone and will also be webcast live from the corporate website [2][3] Group 2 - Twin Hospitality Group Inc. operates the Twin Peaks and Smokey Bones restaurant brands, focusing on redefining the casual dining category [4] - Twin Peaks has 114 locations across 27 states and Mexico, known for its made-from-scratch food and sports bar atmosphere [4] - Smokey Bones operates 51 locations across 16 states, specializing in meat-centric dishes and a full bar [4]

Core Insights - Twin Hospitality Group Inc. reported a 5.4% decrease in total revenue for the fiscal first quarter of 2025, amounting to $87.1 million compared to $92.1 million in the same period of 2024, primarily due to lower same-store sales and the closure of one Smokey Bones location during its conversion to a Twin Peaks lodge [6][8] - The company achieved system-wide sales growth of 5% to $146.3 million, driven by new company-owned restaurants, despite industry-wide challenges [3][8] - Twin Peaks continues to focus on high-margin beverage sales, with alcohol accounting for nearly 50% of restaurant revenue [3] Financial Performance - The company experienced a net loss of $12.1 million in Q1 2025, compared to a net loss of $9.2 million in Q1 2024 [8][26] - Adjusted EBITDA decreased to $5.1 million from $7.1 million year-over-year [8][27] - Restaurant contribution margin fell to 11.2% from 13.6% in the previous year, with Twin Peaks at 16.9% and Smokey Bones at 4.4% [8][29] Operational Highlights - Twin Peaks opened two new lodges, including a second Smokey Bones conversion in Brandon, Florida, and a franchised location in Algonquin, Illinois, bringing the total to 116 locations [3][8] - The company plans to open three to four new units this year, with a robust development pipeline consisting of 100 franchise agreements [3][8] - Labor and benefits costs decreased by 5.1% to $25.3 million, while food and beverage costs decreased by 5.2% to $21.2 million [7][9] Marketing and Advertising - Advertising expenses decreased by 14.9% to $5.1 million, primarily due to lower marketing spend for Smokey Bones [10]

Group 1 - Twin Hospitality Group Inc. will host a conference call to review its first quarter 2025 financial results on May 8, 2025, at 6:00 PM ET [1] - A press release with the financial results will be issued prior to the conference call [1] - The call will be hosted by Ken Kuick, Interim Chief Executive Officer and Chief Financial Officer [2] Group 2 - The conference call can be accessed live via phone or webcast, with a replay available after the call [2][3] - Twin Hospitality operates the Twin Peaks and Smokey Bones restaurant brands, focusing on redefining the casual dining category [4] - Twin Peaks has approximately 116 locations across 27 states and Mexico, known for its made-from-scratch food and sports bar atmosphere [4]