Twin Hospitality Group Reports Q2 Revenue Decline Amid "Short-Term Pressure"

Twin Hospitality Group (NASDAQ:TWNP) reported Q2 revenue of $87.8 million, down 4.1% YoY, due to the closure of five underperforming Smokey Bones locations and temporary closures of other sites. The company cited "short-term pressure" impacting its results. Despite this, Twin Hospitality Group remains optimistic about its long-term prospects, focusing on growth and profitability.

Twin Hospitality Group Inc. (NASDAQ: TWNP), a leading casual dining restaurant company, reported its fiscal second quarter 2025 financial results on July 30, 2025. The company announced that its total revenue decreased by 4.1% year-over-year (YoY) to $87.8 million, driven by the closure of five underperforming Smokey Bones locations and temporary closures of other sites. Despite the short-term pressure, the company remains optimistic about its long-term prospects and is focusing on growth and profitability.

The company's Chief Executive Officer, Kim Boerema, stated, "While our second quarter results reflect some short-term pressure, we are acting with urgency around six clear priorities: focusing on the fundamentals of great operations, reducing complexity and eliminating redundant systems, sharpening cost discipline across the business, streamlining and strengthening our menu offerings, taking a measured, market-informed approach to pricing and positioning the company to continue its dynamic growth." These steps are aimed at improving execution, rebuilding momentum, and delivering long-term value.

The company's restaurant contribution margin fell from 13.4% a year ago to 11.8%, with Twin Peaks contributing 17.7% and Smokey Bones contributing 4.9%. Adjusted EBITDA was $5.2 million, compared to $7.0 million a year ago.

Despite the challenges, Twin Hospitality Group remains confident in its ability to expand efficiently and deliver attractive returns through both new builds and conversions. The company is on track to open a franchised Twin Peaks lodge in Fayetteville, North Carolina by year-end, with two additional company-owned conversions planned for early 2026. The converted locations are expected to deliver significantly higher volumes than they generated as Smokey Bones.

Twin Hospitality Group will host a conference call and webcast to discuss its fiscal second quarter 2025 financial results on July 30, 2025, at 5:15 PM ET. The call can be accessed live over the phone or via webcast from the corporate website.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/TWNP-Q/pressreleases/33695144/twin-hospitality-group-inc-announces-second-quarter-2025-financial-results-on-july-30-2025/
[2] https://seekingalpha.com/news/4475706-twin-hospitality-slides-after-saying-short-term-pressure-impacted-q2-results
[3] https://finance.yahoo.com/news/twin-hospitality-group-inc-reports-201000047.html