Why did TWNP's operating profit drop sharply in Q4 2024?

Twin Hospitality Group Inc. (TWNP) experienced a significant drop in operating income in Q4 2024, with an operating income of -$18.17 million. To understand the reasons behind this drop, we need to analyze several factors:

1. **Revenue Decline**: The company's total revenue decreased by 5.4% to $87.1 million. This decline in revenue could be due to various factors such as market conditions, competition, or changes in customer preferences.
2. **System-Wide Sales Decline**: In addition to the revenue decline, system-wide sales also decreased by 3.5%. This indicates that the decrease in revenue was not isolated to a specific quarter or area of the business.
3. **Net Loss Increase**: The net loss increased to $12.1 million from $9.2 million. This suggests that the company faced significant challenges during the quarter, which could be related to operational inefficiencies, increased costs, or other financial pressures.
4. **Same-Store Sales Decline**: Same-store sales declined by 1.5%. This implies that existing stores and locations were not performing well, which could be a contributing factor to the overall revenue decline.
5. **Construction Delays**: Twin Peaks, a subsidiary of TWNP, experienced construction delays, which revised its new unit opening plan to 3-4 units for the year. These delays could have had a negative impact on the company's ability to generate revenue from new locations.

In conclusion, the sharp drop in TWNP's operating profit in Q4 2024 can be attributed to a combination of revenue decline, system-wide sales decrease, net loss increase, same-store sales decline, and construction delays. These factors collectively paint a picture of a company facing significant challenges in generating revenue and managing its operations effectively during that quarter.