Twin Hospitality Group Inc. Class A (TWNP) AI Stock Analysis

• Market Cap: $214.40M
• Dividend Yield: N/A
• Average Volume (3M): 18.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: 6.56%
• EPS Growth: -83.27%
• Country: US
• Employees: 6,000
• Sector: Services
• Sector Strength: N/A
• Industry: Restaurants
• EPS (TTM): -0.36
• Shares Outstanding: 54,455,856
• 10 Day Avg. Volume: 28,411
• 30 Day Avg. Volume: 18,099
• PEG Ratio: -0.08
• Price to Book (P/B): -10.67
• Price to Sales (P/S): 2.55
• P/FCF Ratio: -22.48
• Enterprise Value/Market Cap: 3.75
• Enterprise Value/Revenue: 3.08
• Enterprise Value/Gross Profit: 13.93
• Enterprise Value/Ebitda: -144.78
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: $3.50 ▼(-4.37% Downside)

Twin Hospitality Group's overall stock score is significantly impacted by its poor financial performance, characterized by high leverage and negative cash flow. While corporate events like leadership change and debt conversion are positive, they are not enough to offset the financial and technical weaknesses.

Twin Hospitality Group Inc. Class A Business Overview & Revenue Model

Company Description

Twin Hospitality Group, Inc. engages in the operation and franchise of restaurants and sports bars. Its restaurants include Twin Peaks and Smokey Bones. The company was founded on February 6, 2024 and is headquartered in Dallas, TX.

How the Company Makes Money

Twin Hospitality Group Inc. generates revenue primarily through its hotel management services, which include room bookings, food and beverage sales, and event hosting. The company earns a significant portion of its income from managing properties on behalf of hotel owners, for which it charges management fees based on a percentage of the property's revenue. Additionally, Twin Hospitality Group Inc. benefits from strategic partnerships with travel agencies and online booking platforms, enhancing its market reach and occupancy rates. Ancillary revenue streams include premium services such as spa and wellness facilities, loyalty programs, and branded merchandise.

Twin Hospitality Group Inc. Class A Financial Statement Overview

Summary

Twin Hospitality Group Inc. faces significant financial challenges. Despite strong revenue growth, the company struggles with declining profitability, negative cash flow, and a highly leveraged balance sheet with negative equity.

Income Statement

Twin Hospitality Group Inc. shows a mixed performance in its income statement. The company experienced significant revenue growth of 53.3% from 2023 to 2024, indicating strong top-line expansion. However, profitability metrics are concerning, with a negative net profit margin of -13.6% in 2024, down from -6.0% in 2023, and a negative EBIT margin of -2.4% in 2024. The gross profit margin decreased to 27.1% in 2024 from 43.2% in 2023, highlighting increased cost pressures. The EBITDA margin also declined to 3.7% from 12.1% in the previous year, reflecting operational challenges.

Balance Sheet

The balance sheet of Twin Hospitality Group Inc. reveals significant financial instability. The company has a negative stockholders' equity of -$84.6 million in 2024, indicating insolvency risks. The debt-to-equity ratio is not calculable due to negative equity, but the high total debt of $569.8 million suggests excessive leverage. The equity ratio is negative, reflecting a capital structure heavily reliant on debt. These factors pose substantial risks to financial stability and future solvency.

Cash Flow

Cash flow analysis for Twin Hospitality Group Inc. highlights liquidity challenges. Operating cash flow turned negative in 2024 at -$15.0 million, compared to a positive $6.0 million in 2023, indicating deteriorating cash generation from operations. Free cash flow is also negative at -$40.2 million, worsening from -$17.8 million in 2023, suggesting increased capital expenditures or reduced cash inflows. The free cash flow to net income ratio is not favorable, reflecting cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	261.43M	353.80M	230.87M	165.86M
Gross Profit	57.77M	96.00M	99.82M	57.60M
EBITDA	-5.56M	13.08M	28.02M	20.20M
Net Income	-44.90M	-48.17M	-13.84M	-12.77M
Balance Sheet
Total Assets	535.07M	542.45M	565.58M	391.14M
Cash, Cash Equivalents and Short-Term Investments	6.06M	9.37M	4.49M	2.97M
Total Debt	565.85M	569.85M	514.96M	295.69M
Total Liabilities	613.71M	627.05M	581.09M	330.97M
Stockholders Equity	-78.64M	-84.61M	-15.51M	60.18M
Cash Flow
Free Cash Flow	-32.60M	-40.17M	-17.83M	-23.97M
Operating Cash Flow	-21.97M	-15.04M	6.04M	-6.16M
Investing Cash Flow	-1.57M	-20.50M	-14.61M	-6.38M
Financing Cash Flow	15.14M	37.28M	15.74M	6.42M

Twin Hospitality Group Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	€3.95B	16.54	-4.02%	4.37%	2.15%	-15.30%
SPAI	60 Neutral	$58.26M	―	-594.07%	―	―	―
PC	45 Neutral		―		―	―	―
TWNP	42 Neutral	$214.40M	―		―	6.56%	-83.27%

Twin Hospitality Group Inc. Class A Corporate Events

Twin Hospitality Appoints New CEO with Comprehensive Package

On June 27, 2025, Twin Hospitality Group Inc. formalized an Employment Agreement with Kim Boerema, who had joined as President and CEO on May 19, 2025. The agreement outlines a base salary of $450,000 with potential merit-based increases, a minimum annual bonus of $250,000, and stock options, along with a relocation allowance and severance terms. The contract includes non-competition and non-solicitation clauses, restricting Mr. Boerema’s activities post-employment within a specified radius of Twin Peaks restaurants.

Twin Hospitality Converts Debt to Equity in Exchange

On June 4, 2025, Twin Hospitality Group Inc. entered into an Exchange Agreement with FAT Brands Inc., converting $31,200,345 of liabilities into 7,139,667 shares of Class A Common Stock at $4.37 per share. This transaction, exempt from registration under the Securities Act, aims to strengthen Twin Hospitality’s financial position by reducing debt and potentially enhancing its market standing.

Twin Hospitality Group Inc. Issues Regulation FD Disclosure

The news release from Twin Hospitality Group Inc. Class A does not provide specific details about the company’s industry, primary products, or market focus. The release primarily consists of disclaimers regarding the filing and updating of information, indicating that the company does not assume any obligation to correct or update the information presented in the investor presentation. Additionally, it disclaims any inferences regarding the materiality of the information furnished.

Twin Hospitality Group Appoints New CEO Kim Boerema

On May 15, 2025, Twin Hospitality Group Inc. announced the appointment of Kim Boerema as the new Chief Executive Officer, effective May 19, 2025. Boerema, a seasoned industry veteran, is expected to leverage his extensive experience in scaling and optimizing restaurant operations to drive the growth of Twin Peaks. His previous roles include leadership positions at Parry’s Pizzeria & Taphouse, Iron Hill Brewery and Restaurant, California Pizza Kitchen, and Texas Roadhouse. This strategic leadership change aims to enhance Twin Peaks’ brand integrity and operational excellence as it continues its global expansion.