Twin Hospitality Group (TWNP) Q3 2025 earnings summary

Executive summary

• Focused on operational excellence, margin improvement, and sustainable growth since new leadership in May, with early momentum from initiatives contributing to expanded restaurant-level contribution margin and resilience in core markets.

• Strengthened executive team with key hires and promotions, including new management at Smokey Bones, to drive performance and execute growth strategies.

• Operates 159 restaurants under Twin Peaks and Smokey Bones, with 72 domestic and 7 international franchised Twin Peaks, 35 company-owned Twin Peaks, and 45 company-owned Smokey Bones as of September 28, 2025.

• Strategic conversion of underperforming Smokey Bones units to Twin Peaks lodges is underway, with early conversions more than doubling revenue.

• Growth strategy centers on a robust pipeline of nearly 100 signed franchised units, targeting 75–80% franchised new openings.

Financial highlights

• Q3 2025 revenue was $82.3 million, down 1.6% year-over-year; net loss widened to $24.5 million from $16.2 million.

• For the nine months ended September 28, 2025, revenue was $257.3 million (down 3.8% year-over-year), net loss was $57.4 million (vs. $36.2 million prior year).

• System-wide sales were $170.7 million, down 3.3% year-over-year; Twin Peaks revenue rose 5.3% to $50.3 million, while Smokey Bones revenue fell 10.8% to $32 million due to closures and conversions.

• Restaurant-level contribution margin improved to 9.6% from 8.7% year-over-year (Twin Peaks 17.0%, Smokey Bones -0.3%).

• Adjusted EBITDA increased to $3.0 million from $2.3 million; Twin Peaks Adjusted EBITDA was $7.2 million, Smokey Bones -$3.8 million.

Outlook and guidance

• Expect continued margin expansion and benefit from a strong sports calendar in Q4.

• Confident in achieving annual equity targets to support debt reduction and growth investments.

• Robust pipeline of conversions and new openings planned for 2026, with 82 committed Twin Peaks lodges and both franchised and company-owned expansion opportunities.

• Smokey Bones is targeted to achieve improved restaurant-level profitability beginning in early 2026 following closures and management changes.

• Substantial doubt exists about the ability to continue as a going concern within 12 months due to defaults and liquidity constraints.