Twin Hospitality Group Inc. Class A ( (TWNP) ) has released its Q4 earnings. Here is a breakdown of the information Twin Hospitality Group Inc. Class A presented to its investors.
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Twin Hospitality Group Inc., a company operating in the casual dining sector, is known for its Twin Peaks and Smokey Bones restaurant brands, offering unique dining experiences with a focus on sports entertainment and meat-centric menus. In its latest earnings report, Twin Hospitality Group Inc. highlighted significant strategic progress in fiscal year 2024, despite facing financial challenges. The company opened nine new Twin Peaks lodges and completed two Smokey Bones conversions, with plans for further expansion in 2025.
Key financial metrics from the report indicate a mixed performance. Total revenue for the fiscal fourth quarter decreased by 8.2% to $86.5 million, primarily due to an additional operating week in the previous year and lower same-store sales. The company reported a net loss of $12.0 million for the quarter, compared to a $8.8 million loss in the same period last year. For the full fiscal year, however, total revenue increased by 53.2% to $353.8 million, driven by system-wide sales growth of 25.3% and the opening of new stores.
Despite the revenue growth for the year, Twin Hospitality Group faced a loss from operations of $8.3 million, contrasting with an income from operations of $12.9 million in the previous year. The restaurant contribution margin also saw a decline, with a margin of 9.2% compared to 13.1% last year. The company attributes some of these financial challenges to the costs associated with store closures and conversions, as well as increased general and administrative expenses.
Looking forward, Twin Hospitality Group remains optimistic about its growth prospects. The management is focused on expanding the Twin Peaks brand through both company-owned and franchised locations, with a target of opening nine to eleven new lodges in 2025. Additionally, the company plans to continue optimizing its real estate portfolio through further Smokey Bones conversions, aiming to build long-term value for shareholders.