Fat Brands’ Twin Hospitality Group to begin Nasdaq trading on January 30

USA – Leading franchising company Fat Brands has announced that its Twin Hospitality Group, which includes Twin Peaks and Smokey Bones, will begin trading on Nasdaq under the symbol “TWNP” on January 30.

Fat Brands shareholders will receive 5% ownership of Twin Hospitality Group (TWNP), with the remaining shares retained by Fat Brands after the distribution.

The spinoff aims to help Fat Brands reduce its US$1.2 billion debt, with Twin Peaks taking on approximately US$400 million of the debt, according to Chairman and Founder Andy Wiederhorn, who spoke at the ICR Conference on January 14. 

Fat Brands acquired Twin Peaks for $300 million in 2021 but kept the brand independent, maintaining its management team rather than integrating it like other acquired brands.

Wiederhorn noted that taking Twin Peaks public through an IPO or private equity offered the best opportunity to maximize its value, which he previously estimated could reach US$1 billion to US$2 billion as a public company.

The IPO is expected to raise US$75 million, which will be used to reduce Twin Peaks’ debt, leaving about US$325 million outstanding.

Wiederhorn highlighted that the brand’s existing growth pipeline and unit expansion will naturally increase EBITDA and further reduce debt. 

Since Fat Brands’ acquisition, Twin Peaks has grown from 80 units to 115, with plans to convert 30 of 60 Smokey Bones locations into Twin Peaks restaurants.

The brand also has a robust pipeline of over 100 units, with significant growth potential. Twin Peaks reported high average unit volumes (AUVs) of US$6 million, with some locations achieving US$9 million to US$14 million, as revealed in an earnings call.

In 2023, Twin Peaks opened nine locations, signed agreements for 24 additional units, and introduced menu updates, including scratch-made seafood, an updated margarita selection, and new alcohol options. By the end of this year, Twin Peaks expects to open more than 10 new locations.

Looking ahead, Twin Peaks aims to double its unit count over the next five years, with 125 franchise agreements already signed and set to be built during this period.

This expansion is projected to grow systemwide sales to US$1 billion. Franchisees are expected to own 75% to 80% of the total units.

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