Twin Hospitality Group Reports Decline in Revenue and Increased Losses for Q2 2025

Twin Hospitality Group Inc. reported a decline in financial performance for the second quarter and first half of fiscal 2025, as detailed in its latest 10-Q filing. For the thirteen weeks ended June 29, 2025, total revenue was $87.8 million, a decrease of 4.0% from $91.6 million in the same period last year. The company's restaurant sales fell to $79.6 million, down 4.9% year-over-year, primarily due to the closure of five underperforming Smokey Bones locations and lower same-store sales. Franchise revenue, however, saw a modest increase of 4.2%, reaching $8.2 million, attributed to growth from new Twin Peaks franchise openings.

In terms of profitability, Twin Hospitality reported a net loss of $20.8 million for the second quarter, compared to a loss of $10.7 million in the prior year. The increase in losses was driven by a significant rise in general and administrative expenses, which surged by 188.2% to $19.9 million, largely due to higher share-based compensation. The company’s total costs and expenses for the quarter amounted to $99.4 million, up from $90.2 million a year earlier, resulting in a loss from operations of $11.6 million.

Operationally, Twin Hospitality Group's restaurant footprint consisted of 168 locations as of June 29, 2025, including 73 domestic franchised Twin Peaks restaurants and 53 company-owned Smokey Bones restaurants. The company has a robust pipeline with nearly 100 signed franchised units, indicating potential for future growth. However, the company also faced challenges, including a decrease in customer counts and engagement metrics, which contributed to the decline in same-store sales.

The company’s balance sheet showed total assets of $535.1 million, down from $542.4 million at the end of the previous fiscal year. Total liabilities decreased to $613.7 million from $627.1 million, reflecting a reduction in long-term debt. As of June 29, 2025, Twin Hospitality had cash and restricted cash totaling $21.2 million, a decrease from $25.9 million at the end of December 2024. The company continues to rely on operating cash flows and financing activities to meet its liquidity needs, with net cash provided by financing activities amounting to $11.2 million in the first half of 2025.

Looking ahead, Twin Hospitality Group aims to expand its franchise locations, with plans to have approximately 75% to 80% of new openings as franchised restaurants. The company is optimistic about its growth trajectory, although it acknowledges the need for sufficient capital and quality real estate locations to support its expansion plans. The management remains focused on improving operational efficiencies and addressing the challenges posed by market conditions.