FAT Brands Inc., a global restaurant franchising company, has revealed its plans to conduct an initial public offering (IPO) for its Twin Peaks restaurant business. The primary goal of this transaction is to create a separate publicly traded company, unlocking value for FAT Brands’ shareholders and fostering the continued growth of the Twin Peaks brand and its presence in the restaurant market.
Twin Peaks, renowned for its sports lodge dining concept, has been rapidly expanding since its acquisition by FAT Brands in October 2021. With the recent opening of its 100th location, Twin Peaks currently operates in 26 states and two countries. The brand aims to open an additional 18 to 20 lodges in 2023, which would bring the total unit count to around 115 by year-end. Furthermore, Twin Peaks has a committed development pipeline with plans for 109 more franchise locations. Over the next few years, the brand intends to double its unit count to over 200 lodges, with franchised locations accounting for more than 80% of the total. These growth projections are expected to drive systemwide sales to approximately $1.0 billion.
Ken Kuick, Co-CEO and CFO of FAT Brands, expressed confidence in the success of Twin Peaks, highlighting its industry-leading average unit volumes and an impressive 11.3% increase in annual same-store sales in 2022. The decision to establish Twin Peaks as a separate publicly traded company is aimed at maximizing the brand’s potential, capitalizing on expansion plans, and solidifying its position as a leader in the sports lodge dining category.
The timing and scale of the IPO will be contingent on market conditions and other factors, and FAT Brands intends to maintain majority ownership of the newly formed public company following the transaction. It’s important to note that a registration statement with the U.S. Securities and Exchange Commission has not yet been filed, and this announcement does not constitute an offer to sell or a solicitation to buy any securities.
FAT Brands Inc. is a leading global franchising company that specializes in acquiring, marketing, and developing a diverse range of dining concepts worldwide. With an extensive portfolio of 17 restaurant brands including Round Table Pizza, Fatburger, Marble Slab Creamery, and Johnny Rockets, FAT Brands has established a significant presence in the industry. Currently, the company operates and franchises over 2,300 units globally, catering to the diverse tastes and preferences of customers worldwide.
FAT Brands follows a strategic approach in its franchising endeavors, carefully selecting and acquiring brands that align with its vision and have the potential for growth and success. By leveraging its expertise and resources, the company effectively markets and develops these dining concepts to expand their reach and maximize its profitability.
Each brand within the FAT Brands portfolio offers a unique dining experience, catering to different culinary preferences and dining occasions. Whether it’s the classic and delicious pizzas from Round Table Pizza, the iconic burgers from Fatburger, the indulgent ice cream creations from Marble Slab Creamery, or the timeless American diner experience provided by Johnny Rockets, FAT Brands covers a wide spectrum of culinary delights.
With its vast network of franchise locations, FAT Brands has a global footprint, ensuring that customers can enjoy their favorite meals and dining experiences in various parts of the world. The company’s commitment to quality, innovation, and customer satisfaction has contributed to its success and positioned it as a leader in the franchising industry.
By combining its extensive industry knowledge with effective marketing strategies, FAT Brands continues to drive growth and expansion. The company’s ability to identify emerging trends, adapt to changing consumer preferences, and capitalize on market opportunities has been key to its sustained success.
Twin Peaks, established in 2005 in Lewisville, Texas, presently operates 100 locations in the United States and Mexico. The restaurant chain is renowned for its sports lodge theme, offering made-from-scratch food, 29-degree cold beer, scenic views, and wall-to-wall TVs. Twin Peaks’ menu features a wide array of options, ranging from handcrafted burgers to smoked brisket, pork, and wings, catering to a diverse range of appetites.
As with any forward-looking statements, it is advisable to exercise caution. The information provided in this press release includes expectations regarding the planned IPO and its benefits, future financial and operational results of Twin Peaks, timing and performance of new store openings, and the brand’s pipeline of new locations. These forward-looking statements are subject to various risks, uncertainties, and contingencies that may be difficult to predict and are beyond FAT Brands’ control, potentially leading to actual results differing materially from the expressed or implied expectations. It is recommended to refer to the filings made by FAT Brands Inc. with the U.S. Securities and Exchange Commission for a detailed discussion of the risks and uncertainties that could impact actual results. FAT Brands undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
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