FAT Brands Announces Opening of First Twin Peaks Conversion from a Smokey Bones

Rhea-AI Summary

FAT Brands Inc. (NASDAQ: FAT) has announced the opening of its first converted Smokey Bones location to Twin Peaks in Lakeland, Florida. This move is part of FAT Brands' strategy to fuel growth for Twin Peaks, its fastest-growing brand, by converting select Smokey Bones locations. The company has identified approximately 30 Smokey Bones locations for potential conversion over the next several years.

Ken Kuick, Co-CEO and CFO of FAT Brands, highlighted that this conversion strategy provides a significant return on investment by reducing construction time by about a year and a half. Twin Peaks, known for its strong and growing average-unit volumes, is expected to benefit from this expansion plan as it continues to redefine the polished casual dining sector.

Positive

• Conversion strategy reduces construction time by approximately 1.5 years
• Twin Peaks is FAT Brands' fastest-growing concept with strong average-unit volumes
• Pipeline of about 30 Smokey Bones locations identified for potential conversion
• Strategy expected to drive robust expansion plans for Twin Peaks domestically

Negative

• None.

Insights

Financial Analyst

FAT Brands' strategy to convert Smokey Bones locations to Twin Peaks is a smart move for accelerating growth and improving profitability. The conversion process saves approximately 18 months of construction time, significantly reducing capital expenditure and time-to-market. This approach allows FAT Brands to leverage existing real estate and infrastructure, potentially leading to faster ROI.

Twin Peaks, as FAT Brands' fastest-growing concept with strong and growing average-unit volumes, presents an opportunity for increased revenue per location. The pipeline of 30 planned conversions over the next few years could substantially boost FAT Brands' top-line growth. However, investors should monitor the conversion costs and performance metrics of these new Twin Peaks locations to ensure the strategy delivers the expected returns.

Market Research Analyst

The conversion strategy aligns well with current market trends in the restaurant industry. Polished casual dining, which Twin Peaks represents, has been gaining traction among consumers seeking elevated dining experiences. This move allows FAT Brands to capitalize on changing consumer preferences while optimizing its real estate portfolio.

The success of this strategy will largely depend on local market dynamics and Twin Peaks' ability to attract a different customer base than Smokey Bones. Investors should watch for cannibalization risks and monitor customer reception in converted locations. Additionally, the focus on Twin Peaks expansion suggests FAT Brands sees long-term growth potential in the sports bar concept, which could indicate a shift in the company's overall portfolio strategy.

Fast-Growing Sports Lodge Fuels Additional Growth Through Sister Brand Conversion Strategy

LOS ANGELES, Sept. 17, 2024 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc., (NASDAQ: FAT), a leading global franchising company and parent company of 18 iconic brands including Twin Peaks, is pleased to announce the opening of the first converted Smokey Bones location to Twin Peaks in Lakeland, Florida.

Since acquiring Smokey Bones last year, FAT Brands has identified a select number of Smokey Bones locations to convert to its fastest-growing brand, Twin Peaks. The global restaurant franchising company has identified this strategy as a key growth pillar for the brand and currently has a pipeline of approximately 30 Smokey Bones locations they are looking to convert over the next several years.

“Converting Smokey Bones locations to Twin Peaks provides a significant return on investment as altering a standing restaurant with similar square footage and real estate draw like Smokey Bones cuts out about a year and a half of construction time,” said Ken Kuick, Co-CEO and CFO of FAT Brands. “Twin Peaks is our fastest-growing concept, producing strong and growing average-unit volumes. We believe this strategy will further drive the brand’s robust expansion plans domestically as it continues to redefine the polished casual dining sector.”

For more information on FAT Brands, visit www.fatbrands.com.

About FAT (Fresh. Authentic. Tasty.) Brands

FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. The Company currently owns 18 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Smokey Bones, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,300 units worldwide. For more information on FAT Brands, please visit www.fatbrands.com.

About Twin Peaks

Founded in 2005 in the Dallas suburb of Lewisville, Twin Peaks has over 110 locations in the US and Mexico. Twin Peaks is the ultimate sports lodge featuring made-from-scratch food and the coldest beer in the business, surrounded by scenic views and wall-to-wall TVs. At every Twin Peaks, guests are immediately welcomed by a friendly Twin Peaks Girl and served up a menu made for MVPs. From its smashed and seared-to-order burgers to its in-house smoked brisket, and wings, guests can expect menu items that satisfy every appetite. To learn more about franchise opportunities, visit twinpeaksfranchise.com. For more information, visit twinpeaksrestaurant.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the timing and performance of new store openings. Forward-looking statements reflect the expectations of management concerning the future and are subject to significant business, economic and competitive risks, uncertainties, and contingencies. These factors are difficult to predict and beyond our control and could cause our actual results to differ materially from those expressed or implied in such forward-looking statements. We refer you to the documents that are filed from time to time by FAT Brands Inc. with the Securities and Exchange Commission, such as its reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of these and other factors. We undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date of this press release.

Media Relations:
FAT Brands Inc.
Erin Mandzik
emandzik@fatbrands.com
860-212-6509

FAQ

What is FAT Brands' new strategy for Twin Peaks expansion?

FAT Brands is converting select Smokey Bones locations to Twin Peaks restaurants, with the first conversion completed in Lakeland, Florida. This strategy aims to accelerate Twin Peaks' growth by utilizing existing restaurant spaces.

How many Smokey Bones locations does FAT Brands plan to convert to Twin Peaks?

FAT Brands has identified approximately 30 Smokey Bones locations for potential conversion to Twin Peaks over the next several years.

What are the benefits of converting Smokey Bones locations to Twin Peaks for FAT Brands?

The conversion strategy provides a significant return on investment by reducing construction time by about 1.5 years and leveraging existing restaurant spaces with similar square footage and real estate draw.

When did FAT Brands acquire Smokey Bones?

According to the press release, FAT Brands acquired Smokey Bones last year, which would be in 2023.