Twin Hospitality Group Inc's Business Segments

Twin Hospitality Group Inc. is a franchisor and operator of two casual dining restaurant concepts: Twin Peaks and Smokey Bones. As of December 29, 2024, the company operates 170 restaurants, including both franchised and company-owned locations in domestic and international markets. Fiscal year 2024 system-wide sales totaled $731.6 million, with $573.4 million generated by Twin Peaks and $158.2 million by Smokey Bones. Twin Peaks, established in 2005, is a sports lodge-themed restaurant featuring made-from-scratch food, a 29-degree draft beer program, innovative cocktails, and extensive sports viewing on multiple televisions. Its menu offers a range of items from casual to premium dishes, supported by a barbell pricing model that includes both lower-priced and premium options. The brand employs an all-female waitstaff and targets a broad demographic including Generation X, Millennials, and Generation Z. Smokey Bones, founded in 1999 and repositioned in 2019, is a meat-centric restaurant specializing in slow-smoked and fire-grilled meats. It serves lunch, dinner, and late-night meals with dine-in, pick-up, delivery, and catering services. Following the acquisition of Smokey Bones by FAT Brands Inc., Twin Hospitality Group plans to convert approximately half of the 60 Smokey Bones restaurants into Twin Peaks locations to support growth through lower-cost, faster conversions. The remaining Smokey Bones restaurants will continue to operate or be sold as company-owned or franchised units.

As of December 29, 2024, the Company owns two restaurant brands and generates revenue primarily through franchised and company-owned restaurants. These operations are combined into a single reportable segment due to similarities in products, services, customer base, production, and distribution. Revenue sources include sales of food and beverages at company-owned locations and royalties, franchise fees, and advertising revenue from franchised restaurants. The Chief Executive Officer and Chief Financial Officer, serving as the Chief Operating Decision Makers (CODM), evaluate performance and allocate resources based on consolidated net loss and total assets. These metrics support budgeting, forecasting, income evaluation from segment assets, pricing, performance assessment, competitive analysis, and management and employee compensation decisions. Consolidated net loss encompasses general and administrative expenses, cost of restaurant and factory revenues, depreciation and amortization, advertising fees, interest expense, and income tax provisions. Additional segment items include impairment of goodwill and intangible assets, refranchising losses, acquisition costs, net loss on debt extinguishment, and other income. The Company holds no significant foreign assets requiring separate disclosure and has no single customer accounting for more than 10% of total revenues.