Twin Peaks Set for Late January IPO | Franchise News


Twin Peaks will secure its status as the first franchise to go public in 2025 when it completes its spinoff from FAT Brands in late January.

The casual dining chain that leans into sports is set to begin trading on the Nasdaq stock exchange January 30 under the ticker symbol TWNP. That’s according to documents filed January 10 with the U.S. Securities and Exchange Commission.

The move completes the spinoff set in motion last May as Twin Peaks separates from its parent company. FAT Brands shareholders will get 5 percent of Twin Hospitality Group, the newly formed entity; FAT Brands will retain the remaining 95 percent.

“When we looked at the IPO market for Twin Peaks and the traditional private equity market, we felt the highest value would be from taking it public versus selling it to private equity,” said FAT Brands Chairman Andy Wiederhorn during a session January 14 at the ICR investor conference.

In its investor presentation published January 13, FAT Brands noted Twin Peaks has an estimated equity value of $1.04 billion to $1.28 billion; the company did not provide a target share price.







Joe-Hummel-CEO-Twin-Peaks

Joe Hummel, a former Twin Peaks franchisee, became the chain’s CEO in 2017.


Proceeds from the IPO are intended to deleverage FAT Brands’ balance sheet, which includes more than $1 billion in debt from rapidly acquiring several brands in recent years. Over an 18-month period in 2020 and 2021, the company acquired nine restaurant chains—including Twin Peaks, which it bought for $300 million, plus Fazoli’s and Johnny Rockets—in five separate acquisitions for $917.5 million.

It bought Nestle Toll House Café in 2022, converting that concept’s 80-some stores into Great American Cookies shops, then added Smokey Bones in 2023. About half of that barbecue chain’s 61 units are being converted into Twin Peaks restaurants, extending its approach of using second-generation spaces to more quickly expand. A conversion takes about nine months versus 18 months for a new build, the company said, with an average cost of $2.5 million versus upwards of $4 million for a new unit.

In a separate presentation at the ICR conference, Twin Peaks CEO Joe Hummel said the 115-unit brand is positioned well in the segment to appeal to consumers with varying budgets. Its burger and beer pairings offer a lower-cost value proposition, while customers can also “splurge” with a steak and high-end liquor.

The average unit volume for the Dallas-based chain is $5.3 million; 48 percent of sales come from alcohol. Hummel, who was a franchisee in the brand before becoming CEO in 2017, told Franchise Times in November that his sights are set on hitting $1 billion in systemwide sales. Twin Peaks finished 2023 with $547.7 million in global sales; it expected to finish 2024 at around $580 million.

Hummel said the addressable domestic unit count for Twin Peaks is 625 to 650, while internationally there’s room for up to 250 restaurants. “We see the portable side of the brand,” he said as he noted seven locations are open in Mexico and performing well.

Read more: Chicago-Based Dos Montes Group Expands Twin Peaks in Mexico, U.S.

FAT Brands, meanwhile, may look at more strategic acquisitions—it doesn’t have a coffee brand or salad brand, for example, Wiederhorn said—or bolt-on acquisitions for Twin Peaks. It’s not, however, interested in turnarounds, he continued, of which there are many available.

The Twin Peaks initial public offering comes after the SEC and the U.S. Department of Justice charged Wiederhorn last year for allegedly misappropriating company money for personal expenses.



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