Twin Hospitality Group Reports Decline in Revenue and Increased Losses for Third Quarter 2025

Twin Hospitality Group Inc. reported a decline in financial performance for the third quarter and the first nine months of fiscal 2025, as detailed in its latest 10-Q filing. For the thirteen weeks ended September 28, 2025, total revenue reached $82.3 million, a decrease of 1.6% from $83.7 million in the same period last year. Restaurant sales fell to $74.4 million, down from $75.6 million, primarily due to the closure of 11 underperforming Smokey Bones locations and lower same-store sales. Franchise revenue also saw a slight decline, dropping to $8.0 million from $8.1 million.

The company's financial losses have significantly increased, with a net loss of $24.5 million for the third quarter, compared to a loss of $16.2 million in the prior year. For the first nine months of the fiscal year, the net loss totaled $57.4 million, up from $36.2 million in the same period last year. The increase in losses is attributed to higher general and administrative expenses, which surged by 172.1% to $19.5 million in the third quarter, largely due to costs associated with store closures and non-cash share-based compensation.

Operationally, Twin Hospitality Group has been focusing on restructuring its restaurant portfolio. As of September 28, 2025, the company operated a total of 159 restaurants, including 72 domestic franchised Twin Peaks locations and 45 company-owned Smokey Bones restaurants. The company has a pipeline of nearly 100 signed franchised units, indicating a strategy aimed at expanding its franchise operations. However, the company is facing significant challenges, including a negative cash flow from operations of $20.5 million for the first nine months of the fiscal year, compared to $7.6 million in the previous year.

The company is currently in default under its Securitization Notes, which has raised substantial doubt about its ability to continue as a going concern. The filing indicates that the noteholders could potentially accelerate the repayment of the outstanding principal and interest, which would materially impact the company's financial condition. Twin Hospitality Group is engaged in discussions with noteholders regarding potential restructuring options, but the outcome remains uncertain.

Looking ahead, the company aims to continue its expansion strategy while addressing its financial challenges. The management believes that restructuring its debt or obtaining relief from noteholders could alleviate some of the current financial pressures. However, the company acknowledges that these plans are not guaranteed and depend on factors outside its control. As of the end of the reporting period, Twin Hospitality Group had $5.5 million in unrestricted cash, highlighting the urgent need for improved liquidity and operational performance.