Twin Hospitality Group, the parent company of the Twin Peaks breastaurant chain, is acquiring eight franchised locations in Florida for $47 million in cash.
The restaurants, currently owned by DMD Ventures, include some of the best-performing of Twin Peaks' 114 "sports lodges." They’re expected to contribute a total of $76 million to $77 million in annual revenue and $9 million to $10 million in additional annual earnings before interest, taxes, depreciation and amortization (EBITDA), which Twin Hospitality plans to use to pay down debt.
The deal will also allow Twin Peaks to tap into the strong and growing Florida market. But the company said its development strategy will remain focused on franchising. At the end of 2024, the chain consisted of 34 company-owned locations and 74 franchised stores.
"We are delighted to bring proven, high-performing franchise locations into our corporate portfolio," said Twin Hospitality CEO Kim Boerema in a statement. "These are some of our top performing restaurants, and Florida has consistently demonstrated strong performance as a key market for Twin Peaks.”
DMD was founded in 2012 and operates Twin Peaks, Papa Johns, Candlewood Suites and Craveworthy Brands locations. Last year, it filed for bankruptcy for two of its Twin Peaks restaurants amid a lawsuit from a lender.
Dallas-based Twin Peaks has struggled since its IPO last January in a spinoff from Fat Brands. In the third quarter, same-store sales fell 4.1% year over year, and revenues fell 1.4%, though sales improved in core markets. The company also reported a net loss of $24.5 million.
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