Twin Hospitality Group (TWNP) Q2 2025 earnings summary

Executive summary

• New CEO Kim Boerema outlined a six-priority strategy focused on operational excellence, cost discipline, menu simplification, measured pricing, and growth through conversions and new openings.

• Operates 168 restaurants under Twin Peaks and Smokey Bones, with 80 franchised and 88 company-owned locations as of June 29, 2025.

• Growth strategy centers on nearly 100 signed franchised units, targeting 75–80% of new openings as franchised, leveraging the Smokey Bones real estate portfolio for conversions.

• Recent events include the DOJ dropping all charges against the parent company and leadership, and Twin Peaks earning a spot on the 2025 Technomic Top 500 list.

• Completed legal and structural separation (Spin-Off) from FAT Brands Inc. in January 2025.

Financial highlights

• Q2 2025 revenue was $87.8 million, down 4.1% year-over-year; net loss widened to $20.8 million from $10.7 million.

• System-wide sales for the quarter were $181.9 million, down 3.3% year-over-year; Twin Peaks' system-wide sales rose to $145.2 million, but same-store sales declined 4.4%.

• Adjusted EBITDA fell to $5.2 million from $7.0 million year-over-year.

• General and administrative expense rose to $19.9 million from $6.9 million, mainly due to non-cash share-based compensation.

• Cash and restricted cash totaled $21.2 million at quarter-end, down from $25.9 million at year-end.

Outlook and guidance

• Optimism for revenue gains in the second half of the year, driven by a stronger sports calendar and new marketing initiatives.

• Expansion plans focus on franchised growth, with nearly 100 signed franchise agreements and sufficient liquidity for the next 12 months.

• Most Smokey Bones conversions to Twin Peaks are expected to be completed or underway within 12 months.

• Plans to open a franchised Twin Peaks lodge in Fayetteville, NC by year-end and two more company-owned conversions in early 2026.

• No material commitments for capital expenditures as of June 29, 2025.