Twin Hospitality Reports $24.5M Q3 Loss, Accelerates Smokey Bones Conversions
By ATTN Desk · Editorial oversight: Sean Han
Introduction
TWIN HOSPITALITY GROUP INC (NASDAQ: TWNP) is a Dallas-based restaurant company that develops, operates, and franchises two specialty casual dining concepts: Twin Peaks and Smokey Bones. As of November 2025, the company manages 165 locations across the United States and Mexico.
Corporate Structure and Experience
Founded in 2025 as a spin-off from FAT Brands Inc., Twin Hospitality employs between 501 and 1,000 people across its corporate and field operations. The executive team includes:
- Kim Boerema, Chief Executive Officer – oversaw the 2025 spin-off and strategic reviews
- Ken Brendemihl, President of Smokey Bones (appointed September 2, 2025) – brings 25 years of restaurant leadership
- Lexi Burns, Chief People Officer (appointed September 8, 2025) – leads human resources for both Twin Peaks and Smokey Bones
Restaurant Conversion by Mitchell Luo
Recent Developments and News
- September 2, 2025: Ken Brendemihl named President of Smokey Bones. Initiatives include closing 15 underperforming units (10 closed to date), converting 19 locations into Twin Peaks lodges (two conversions completed, one under construction), and reducing corporate overhead by $1.5 million.
- September 8, 2025: Lexi Burns appointed Chief People Officer for both brands, adding Smokey Bones to her existing Twin Peaks responsibilities.
- November 5, 2025: Fiscal third quarter results for the period ended September 28, 2025:
- Total revenue declined 1.6% year-over-year to $82.3 million.
- Loss from operations was $13.4 million (versus $3.6 million in Q3 2024).
- Net loss of $24.5 million (versus $16.2 million).
- Restaurant contribution margin increased to 9.6%.
- Adjusted EBITDA rose to $3.0 million.
- November 13, 2025: Filed a prospectus (Form 424B3) for a Common Stock Purchase Agreement with White Lion Capital LLC, enabling up to $50 million in equity proceeds through the issuance of up to 10,885,725 shares.
- November 21, 2025: Filed Form 8-K (Item 2.04), disclosing a material event (details available in the full SEC filing).
Financial and Strategic Analysis
| Metric | Q3 2025 | Q3 2024 |
|---|---|---|
| Total revenue | $82.3 million (–1.6%) | $83.7 million |
| Loss from operations | $(13.4 million) | $(3.6 million) |
| Net loss | $(24.5 million) | $(16.2 million) |
| Restaurant contribution margin (all) | 9.6% | 8.7% |
| Adjusted EBITDA | $3.0 million | $2.3 million |
The company’s strategy of converting underperforming Smokey Bones units into Twin Peaks lodges has increased average unit volumes to approximately $7.8 million at converted sites, compared to about $3.5 million previously. The equity facility with White Lion Capital offers financial flexibility but presents potential dilution risks for existing shareholders.
Market Position and Industry Context
Twin Peaks (114 units) and Smokey Bones (51 units) operate in the experiential casual dining segment alongside competitors such as Texas Roadhouse, Darden Restaurants, and Buffalo Wild Wings. Like its peers, Twin Hospitality faces:
- Pressure on same-store sales (Twin Peaks SSS down 4.1% in Q3).
- Rising labor and commodity costs.
- Shifts in consumer spending toward limited-service formats.
The company’s focus on themed lodges, enhanced by a pipeline of franchised and company-owned growth opportunities, aims to differentiate its portfolio in a competitive market.
TL;DR
As of November 24, 2025, TWNP shares trade at $2.1455 (–39.56%), reflecting broader challenges in the casual dining sector. Q3 revenue decreased by 1.6% to $82.3 million, resulting in a net loss of $24.5 million. Management has accelerated the conversion of underperforming Smokey Bones locations into Twin Peaks lodges and reduced corporate overhead. The November 2025 equity facility with White Lion Capital may raise up to $50 million but could dilute existing shareholders. The company is targeting improved profitability for Smokey Bones in early 2026, with a pipeline of franchised and company-owned openings slated for 2026.