Twin Peaks has a date with the Nasdaq.
The 115-unit casual-dining chain known for its lodge-like atmosphere and all-female waitstaff will begin trading on the stock exchange on Jan. 30 under ticker symbol TWNP, according to documents filed with the Securities and Exchange Commission on Friday.
It will complete the chain’s spinoff from parent company Fat Brands, the owner of 16 other restaurant chains including Fatburger and Fazoli’s. Fat Brands shareholders will get 5% of the newly formed Twin Hospitality Group, while Fat Brands will hang on to the remaining 95%.
Twin Peaks has an estimated equity value of $1.04 billion to $1.28 billion, according to an investor presentation published Monday by Fat Brands.
CEO Joe Hummel declined to reveal the chain’s target share price during an interview at the ICR investor conference Monday. But he said proceeds from the offering will allow Twin Peaks to pay down debt and develop new restaurants. It plans to open as many as 16 new units in 2025, many of them conversions of Fat Brand-owned Smokey Bones locations. And it believes there is room for up to 650 Twin Peaks in the U.S. and 250 internationally.
Today, about 70% of Twin Peaks locations are operated by franchisees. That number will creep up to about 75% as the chain expands, said Hummel, who spent six years as a Twin Peaks franchisee before becoming CEO in 2017.
He expects the chain to generate $580 million to $590 million in sales this year and believes it will eventually hit the $1 billion mark.
Fat Brands acquired Twin Peaks in 2021 for $300 million. The Dallas-based chain has average unit volumes of $5.3 million, and in some markets, such as Florida, it generates as much as $13 million per location. Nearly half (48%) of its sales come from alcohol, including beer, which is served at 29 degrees in frozen mugs. Live sports are a major traffic driver; restaurants boast as many as 80 TV screens.
But traffic has slowed lately. The chain’s same-store sales were down 3.7% year over year in the third quarter. Hummel said there has been some cannibalization of sales as Twin Peaks builds out markets and said that inflation has also been a factor. “You are losing users in an inflationary time,” he said.
The chain aims to appeal to a wide range of budgets with a barbell menu strategy that includes lower-priced items like burgers and beer as well as more premium options like steak and craft cocktails. Wings, tacos, sandwiches and flatbread are also on offer. All of it is made from scratch.
Executives said the brand can work anywhere, including internationally, where it currently has seven locations, all in Mexico. In 2023, Fat Brands acquired 61-unit Smokey Bones with plans to convert many of the chain’s locations into Twin Peaks. The strategy has helped keep construction costs down and get new restaurants open faster. It has also helped revenues. A Smokey Bones in Lakeland, Florida, that previously generated $3 million a year is now doing $8.1 million after being reconfigured as a Twin Peaks, Hummel said.
“It’s just better,” he said, citing Twin Peaks’ six “weapons of mass distraction”: the aforementioned scratch-made food, 29-degree beer, curated bar program, array of TVs, lodge vibe and scantily clad Twin Peaks girls.
In an interview at ICR on Monday, Fat Brands founder and Chairman Andy Wiederhorn said the highly acquisitive company may look to do other deals that would complement Twin Peaks, either by creating additional opportunities for restaurant conversions or otherwise.
As for the 30 Smokey Bones that won’t be turned into Twin Peaks, Wiederhorn said the company will probably sell them, potentially to franchisees.
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