Fri, Feb 28, 10:27 PM (51 days ago)
**Summary of Twin Hospitality Group Inc. (TWNP) 10-K Report for Fiscal Year Ended December 29, 2024** **Financial Performance:** Twin Hospitality Group Inc. reported total revenue of $353.8 million, a 53.2% increase from $230.9 million in FY2023. This growth was primarily driven by the acquisition of Smokey Bones, contributing $115.5 million in revenue. However, the company recorded a net loss of $48.2 million compared to a loss of $13.8 million in the previous year. **Revenue Breakdown:** Company-owned restaurant sales reached $320.2 million, with franchise revenue at $33.6 million. Significant increases in costs were noted, including food and beverage costs ($87.4 million) and labor costs ($103.2 million), attributed to the Smokey Bones acquisition and inflation. **Strategic Overview:** The company operates 170 restaurants, including 34 company-owned and 74 franchised Twin Peaks locations. A robust pipeline of over 100 signed franchised units indicates strong growth potential. **Future Outlook:** Twin Hospitality plans to convert several Smokey Bones locations into Twin Peaks restaurants, enhancing market presence at a lower cost. **Risk Factors:** Key risks include reliance on franchisee performance, competitive pressures, and potential economic downturns impacting consumer spending. **Financial Condition:** The company had cash and restricted cash of $25.9 million as of the end of FY2024, with significant indebtedness under the Twin Securitization Notes totaling approximately $416.7 million. **Market Position Changes:** The dual-class share structure allows FAT Brands to maintain control, potentially impacting governance and strategic decisions. This summary provides insights into Twin Hospitality Group's operational performance, strategic initiatives, and financial health as it transitions into a standalone entity following its spin-off from FAT Brands.