Twin Hospitality Group (TWNP) Q1 2025 earnings summary

Executive summary

• Operates 171 restaurants under Twin Peaks and Smokey Bones, with 81 franchised and 90 company-owned locations as of March 30, 2025, and a robust development pipeline including over 100 signed franchised units.

• Celebrated 20 years in business, completed spin-off from FAT Brands, and is now listed on NASDAQ as TWNP.

• Opened two new lodges in Q1 2025, including Smokey Bones conversions, bringing total system locations to 116.

• Focused on innovation, local marketing, leveraging major sporting events, and high-margin beverage sales to drive traffic and engagement.

• Awarded the Black Box Intelligence 2025 Voice of the Customer Award, reflecting strong guest sentiment and brand loyalty.

Financial highlights

• Total revenue for Q1 2025 was $87.1 million, down 5.4% year-over-year from $92.1 million.

• System-wide sales at Twin Peaks increased 5.1% year-over-year to $146.2 million, but same-store sales declined 1.5%.

• Net loss widened to $12.1 million from $9.2 million year-over-year; adjusted EBITDA decreased to $5.1 million from $7.1 million.

• Company-owned restaurant sales decreased 5.9% to $78.4 million; franchise revenue held steady at $8.7 million.

• Twin Peaks revenue rose 5.9% to $51 million, while Smokey Bones revenue fell 17.8% to $36.1 million due to conversions and closures.

Outlook and guidance

• Plans to open three to four new units in 2025, with a pipeline of 100 franchise agreements and expansion into new markets.

• Anticipates continued growth through new unit openings, major sporting event promotions, and food and beverage innovation.

• Sufficient funding sources are anticipated to meet business requirements for the next 12 months, with liquidity needs expected to be met primarily by franchisees.

• Plans to raise $75–$100 million in equity in 2025, with 75% allocated to debt reduction, though timing is impacted by market volatility.

• Sequential improvement in same-store sales during the quarter, with March showing a 0.4% increase.