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

• Market Cap: $57.33M
• Dividend Yield: N/A
• Average Volume (3M): 9.28K
• Price to Earnings (P/E): ―
• Beta (1Y): >-0.01
• Revenue Growth: -4.93%
• EPS Growth: -39.52%
• Country: US
• Employees: 6,000
• Sector: Services
• Sector Strength: N/A
• Industry: Restaurants
• EPS (TTM): -0.44
• Shares Outstanding: 54,455,856
• 10 Day Avg. Volume: 12,397
• 30 Day Avg. Volume: 9,276
• 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: 14.03
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: 11.11
• Enterprise Value/Ebitda: -248.78
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: $0.98 ▲(9.78% Upside)

Twin Hospitality Group Inc. is facing severe financial and operational challenges. The most significant factors are the company's financial instability and bearish technical indicators. Valuation metrics further reflect the company's unprofitability. While a recent stock purchase agreement offers some relief, the overall outlook remains highly negative.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective market strategies, enhancing the company's competitive position in the hospitality sector.

Strategic Partnerships

The $50M stock purchase agreement provides financial flexibility, enabling strategic investments and operational improvements, which can enhance long-term market positioning.

Business Model

The business model leverages management contracts and franchise fees, enabling scalable growth and diversification without heavy capital expenditure.

Negative Factors

Financial Instability

Persistent financial instability, marked by negative margins and equity, threatens long-term viability and limits growth opportunities.

Liquidity Challenges

Negative cash flow from operations indicates liquidity issues, constraining the company's ability to fund operations and invest in growth.

Debt Burden

High debt levels and default risks can lead to financial distress, limiting strategic flexibility and increasing bankruptcy risk.

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 generates revenue primarily through the management and operation of its hotel properties, earning income from room bookings, event hosting, and food and beverage sales. The company also benefits from franchise fees and management contracts with hotel owners, allowing it to expand its portfolio with minimal capital investment. Additionally, Twin Hospitality Group may enter into strategic partnerships with organizations in the tourism and travel industries, enhancing its market reach and driving additional revenue through collaborative promotions and marketing efforts.

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 profitability, liquidity, and solvency. Negative net profit and EBIT margins, along with a negative equity position, highlight severe financial instability.

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	345.10M	353.80M	230.87M	165.86M
Gross Profit	72.44M	96.00M	62.50M	57.60M
EBITDA	-3.23M	13.08M	28.02M	20.20M
Net Income	-61.11M	-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	-41.31M	-40.17M	-17.83M	-23.97M
Operating Cash Flow	-23.49M	-15.04M	6.04M	-6.16M
Investing Cash Flow	-8.76M	-20.50M	-14.61M	-6.38M
Financing Cash Flow	26.85M	37.28M	15.74M	6.42M

Twin Hospitality Group Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.89
• 50DMA: Negative
• 100DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TWNP, the sentiment is Negative. The current price of 0.89 is below the 20-day moving average (MA) of 3.81, below the 50-day MA of 3.96, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 35.88 is Neutral, neither overbought nor oversold. The STOCH value of 8.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TWNP.

Twin Hospitality Group Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BDL	71 Outperform	$53.18M	12.31	6.88%	1.77%	8.83%	41.90%
DENN	61 Neutral	$319.29M	31.66	―	―	0.93%	-41.47%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
STKS	42 Neutral	$57.85M	-0.51	-51.90%	―	51.57%	-367.14%
RRGB	41 Neutral	$72.22M	―	―	―	-3.61%	2.06%
GENK	41 Neutral	$76.40M	-8.57	-8.89%	1.35%	9.36%	-249.08%
TWNP	38 Underperform	$57.33M	-0.71	―	―	-4.93%	-39.52%

Twin Hospitality Group Inc. Class A Corporate Events

Twin Hospitality Faces Financial Distress Amid Note Acceleration

Twin Hospitality Group Inc. has received notices of default related to its special purpose financing subsidiary, Twin Hospitality I, LLC, concerning fixed rate secured notes. On November 17, 2025, the company was notified of an acceleration of these notes, making the principal and interest immediately due, totaling approximately $432.3 million. The company lacks the funds to cover these amounts, which may lead to significant financial distress, including potential bankruptcy proceedings. Discussions with noteholders about refinancing or restructuring are ongoing, but no assurances of a resolution can be provided.

Twin Hospitality Secures $50M Stock Purchase Agreement

On September 30, 2025, Twin Hospitality Group Inc. entered into a Common Stock Purchase Agreement with White Lion Capital, LLC, allowing the company to sell up to $50 million of its Class A common stock to White Lion over a 36-month period. This agreement provides Twin Hospitality Group with flexible financial options, potentially impacting its operational capabilities and market positioning by securing a significant capital source, while also obligating the company to file a registration statement with the SEC for the resale of shares.