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Twin Hospitality is closing 15 underperforming Smokey Bones restaurants, with 10 already shuttered and the remaining five to close by Q3. The closures are part of a strategic review of the Smokey Bones portfolio, which identified 19 restaurants for conversion to Twin Peaks. Fat Brands originally purchased Smokey Bones for $30 million in 2023 and spun it off into Twin Hospitality alongside Twin Peaks in January. The company is focused on supporting remaining profitable Smokey Bones restaurants and plans to franchise a portion of the remaining locations.

Twin Hospitality Group (NASDAQ: TWNP) has announced the closure of 15 underperforming Smokey Bones restaurants, with 10 locations already shuttered and five more set to close by the end of the fiscal third quarter. This strategic move is part of a broader review of the Smokey Bones portfolio, which identified 19 restaurants for conversion to the more profitable Twin Peaks brand. The company aims to enhance its EBITDA performance by focusing on high-performing locations and franchising a portion of the remaining Smokey Bones units.

Smokey Bones was originally acquired by FAT Brands Inc. in 2023 for $30 million and subsequently spun off into Twin Hospitality alongside the Twin Peaks brand in January 2025. The decision to close underperforming Smokey Bones locations and convert others to Twin Peaks lodges is a calculated move to optimize the company's portfolio and improve overall financial performance. The closures are expected to remove approximately $1.5 million in associated corporate overhead, contributing to a material enhancement in EBITDA performance.

The remaining 26 Smokey Bones locations are generating positive cash flow and contributed approximately $3.0 million to total EBITDA on a trailing 12-month basis. Twin Hospitality plans to leverage FAT Brands' proven franchise model to create a more balanced corporate-to-franchise mix for future growth. This shift represents an asset-light strategy that will improve capital efficiency while maintaining brand presence.

The appointment of Ken Brendemihl as President of Smokey Bones, effective immediately, signals Twin Hospitality's commitment to the long-term success of the BBQ chain. Brendemihl brings over 25 years of restaurant leadership experience, most recently as Chief Operating Officer of Alamo Drafthouse. His extensive operational expertise positions him well to execute the nuanced approach of simultaneous brand optimization, selective conversion, and franchise development.

References:
[1] https://www.thestreet.com/restaurants/struggling-bbq-restaurant-chain-closing-another-15-restaurants
[2] https://www.stocktitan.net/news/TWNP/twin-hospitality-group-inc-announces-new-leadership-and-strategic-voarutvsf338.html