IPO Will Enhance Growth of Sports-Focused Restaurant, Executives Say

FAT Brands Inc. has announced it intends to make an initial public offering (IPO) of its Twin Peaks restaurant business. The transaction aims to increase the value of FAT Brands – the name is an acronym for fresh, authentic and tasty – for shareholders by establishing a publicly traded company and enabling further growth of the Twin Peaks restaurant chain, according to a news release from the franchisor. 

Since FAT Brands acquired Twin Peaks in October of 2021, the restaurant chain – which labels itself as a sports lodge restaurant – has posted impressive expansion. Twin Peaks recently opened its 100^th site and has units in 26 states and two countries. 

Future Expansion of the Twin Peaks Franchise

The brand is scheduled to open 18 to 20 new sites this year, which would give it a total of about 115 lodges. This reflects growth of nearly 40% during the 20 months following acquisition by FAT Brands. 

Twin Peaks also has firmed up plans for 109 additional franchise units during coming years. This will bring Twin Peaks’ total units to more than 200 restaurants, with franchises comprising 80% of the units; currently the restaurant chain is 70% franchise units. Once these expansion plans are realized, system wide sales are projected to reach about $1 billion.

Financial Numbers for Twin Peaks

“Twin Peaks was an exceptional acquisition for us in 2021,” Ken Kuick, co-CEO and CFO of FAT Brands, said in the news release. “Led by veteran CEO Joe Hummel and a seasoned management team, Twin Peaks continues to produce industry-leading average unit volumes, with annual same-store sales increasing by 11.3% in 2022. We believe that creating a separate publicly traded company will provide the best opportunity to further enhance the brand…”

In an interview with Bloomberg, FAT Brands founder and Chairman Andy Wiederhorn noted that Twin Peaks is “the largest brand we own by same-store sales, and it has significant growth opportunities.” Twin Peaks restaurants generate an annual net profit of about 15% to 20%, he told Bloomberg, and added that Florida units have roughly $9 million to $12 million in revenue per year. “From a FAT Brands perspective, this brand is a crown jewel, [and] there is a pent-up demand for restaurant IPOs,” Wiederhorn said.

FAT Brands did not disclose a timetable for the IPO, but did state that it will maintain its majority stake in Twin Peaks after the brand goes public. A registration statement has not been filed with the U.S. Securities and Exchange Commission. 

About Twin Peaks and FAT Brands

Twin Peaks was established in 2005 in Lewisville, Texas, a suburb of Dallas. The chain has 100 sites in the United States and Mexico. Twin Peaks offers made-from-scratch food such as burgers, brisket and wings as well as 29-degree beer, with every diner surrounded by televisions. 

FAT Brands acquires, markets and develops quick, casual restaurant concepts globally. The company owns 17 brands, including Buffalo’s Cafe & Express, Elevation Burger, Fatburger, Fazoli’s, Great American Cookies, Hot Dog on a Stick, Hurricane Grill & Wings, Johnny Rockets, Marble Slab Creamery, Native Grill & Wings, Ponderosa and Bonanza Steakhouses, Pretzelmaker, Round Table Pizza, and Yalla Mediterranean along with Twin Peaks. It franchises and owns 2,300-plus units worldwide.