Twin Hospitality Group Price & Performance (TWNP)

The presentation of this additional information should not be considered in isolation nor as a substitute for results prepared in accordance with GAAP. Reconciliations to comparable GAAP measures are available in today's earnings press release. I would now like to turn the call over to Joe Hummel, Chief Executive Officer.

Hello, and welcome to our inaugural conference call. Today marks another exciting new chapter for us as we begin our journey as Twin Hospitality Group, Inc. A standalone publicly traded company. Thank you to all of our team members, franchise partners and guests for making this achievement possible. In January, our parent company, FAT Brands, spun out its two polished casual brands, Twin Peaks and Twin Bones, into a distinct corporate entity, As a result, we now trade separately on the NASDAQ under the ticker TWNP.

Our public listing creates an opportunity for shareholders to directly participate in Twin Peaks growth and success while providing us with another source of capital to execute on our robust development plans. Since Twin Peaks has always operated separately within the Fat Branch portfolio, the transition to becoming an independent company has been seamless. And our experienced executive team, most of whom have guided the brand's growth over a decade, remains firmly in place to lead our continued expansion and value creation. For those of you new to Twin Peaks, we're an award winning restaurant that redefines traditional sports bar experience. Our brand's journey began in 02/2005 with a single location in the Dallas suburb of Louisville, Texas. Has since grown to a system of 115 restaurants, across 27 states in Mexico. Twin Peaks unwavering commitment to an exceptional guest experience defines our brand and drives our continued success. Each of our lodges provide a rugged lodge atmosphere state of the art sports viewing experience and premium dining. This creates an unparalleled entertainment destination and enables us to generate consistent customer traffic across all dayparts including lunch, happy hour, dinner and late night. We offer our guests a made from scratch menu craft beverages featuring 29 degree draft beer, signature cocktails, attentive service from our engaging staff Our strategic barbell pricing, and approach balances accessible entry level options with premium offerings enabling us to serve guests across price points while maintaining exceptional value entry level.

Additionally, our extensive beverage offering supports high margin revenue across our restaurant base. We launched our newest bar menu in early February featuring an updated drink menu that adds 19 premium handcrafted cocktails, creative mix shots, trending categories, and top tier bourbons and tequilas. The enhancement brings both flavors and high end ingredients to the forefront. Delivering expertly crafted beverages as Twin Peaks continuing to raise the bar on what a sports bar can offer. Currently, alcohol makes up nearly half of all Twin Peaks Twin sales. At about two to three times higher than conventional casual dining chains.

Our guests exhibit strong brand loyalty as demonstrated by our Black Box Intelligence scores. We analyzed several consumer sentiment scores including consumer perception of our food, beverages, service, Ambiance consumer intent to return. For Black Box Intelligence, our scores are higher in every category relative to broader casual dining segment validating our brand strength. Throughout 2024, we expanded our footprint with nine new lodges including two in the fourth quarter. Looking ahead, we plan to open nine to 11 new units in 2025 Twin, with six to seven being franchised. Additionally, we anticipate opening between ten and fifteen new lodges in 2026 and an additional 10 to 15 in 2027 including Twin Bones conversions. As we continue growing, we're committed to maintaining a 75% to 80% franchise based system. Our robust growth plans supported by a pipeline of over 100 signed franchise commitments with existing franchise partners driving about 75% of that growth. In 2024, we signed four new franchise development agreements adding a total of 24 new lodge commitments. We then kicked off 2025 with a new five unit development agreement that will expand Twin Peaks into two new markets, South Dakota and Montana. Based on a 2023 whitespace analysis by Caliberate's eSight Analytics, we believe the total addressable market for Twin Peaks is approximately six fifty lodges in The U. S. Approximately two fifty lodges internationally.

With the current footprint of 115 lodges we clearly have significant white space opportunities ahead. We have a flexible real estate strategy and have been highly successful other restaurants and retail stores into Twin Peaks Lodges. This approach, which accounts for approximately 80% of our locations, offers several key advantages. Greater availability of potential sites, faster time to market, approximately nine months for a conversion versus eighteen months on a ground up, lower build out costs, and accelerated return on investment. To help fast track the brand's growth at the end of twenty twenty three, FAT Brands acquired the 60 unit casual dining chain Smokey Bones, with plans to convert approximately half to Twin Peaks. These ready to convert restaurants provide us with clear visibility into our near term growth objectives. Our first Smokey Bones conversion took place in Lakeland, Florida last September. The location more than doubled its sales volume growing from $3,500,000 Smokey Bones in 2023 through a current annualized run rate of approximately $8,000,000 for Twin Peaks. Just last week, we celebrated our second Smokey Bones conversion our first opening of the New Year with in Brandon, Florida, part of the Greater Tampa area. This is the sixteenth location in our high performing state of Florida.

We currently have two additional company owned Smoky Bones conversions planned for the remainder of the year with more to follow in 2026. Looking at our unit economics, Twin Peaks is currently on a path to $1,000,000,000 in sales over the next three to five years. Last year, average unit volumes reached $5,200,000 with top performing locations exceeding $10,000,000 When modeling Twin Peaks openings, we target the following average unit economics in the third full year of operations. AUV of approximately $6,500,000 Restaurant level contribution margin of approximately 16% for our company owned Twin Peaks restaurants, and cash on cash returns of approximately 28.9% for conversions from previous restaurants or retail stores and 37.1% for new build which equates to an approximately three year payback period.

Twin Peaks strong unit economics are a critical element of our ability to grow and attract franchise interest in developing the brand. Now let's turn to the initiatives we're working on for this year. Our marketing strategy is centered around major sporting events strategically enhanced with additional promotions and programming to create comprehensive calendar that maintains engagement between these marquee sport events. This year, we've already had exciting new playoff games the expanded college football playoffs, and UFC matchups that have been good for traffic drivers and are now beginning to see high enthusiasm around NHL and NBA games. Looking ahead, the NCAA college basketball tournament in March will be a key time frame for us to carve back some wins weather challenges during January and February that we all felt We have developed some exciting new promotions geared towards driving repeat visits In the summer FIFA Club World Cup will have an expanded format during June and July we're planning summer soccer promotions to capitalize on this opportunity. Then in the fall, we'll focus on Fantasy Football NFL and college football watch parties, we will complement this program with heavy sports marketing, and endorsers to solidify Twin Peaks position as the ultimate sports lodge for football season.

We were filling in the sports calendar gaps with promotions and unique campaigns around late night flatbread specials strong value messaging around summer driven cocktails such as our robust margarita category along with local specials unique to each slot. Moon Peaks leverages its local sports lodge field by building strong connections within each community throughout Grassridge Mark. This consists of local promo teams activating in and around each lodge along with unique media tactics crafted for each local market to tap into local In summary, 2025 marks an exciting new chapter for us and we're just getting started. We have a strong tenured management team, an underpenetrated brand that offers exceptional experiences while providing value to our franchise partners and shareholders. With that, now turn the call over to Ken Kuwick, CFO of Twin Hospitality Group, Bank review our fourth quarter twenty twenty four financial information. Thank you, Joe. Before I discuss our quarterly results, I'd like to briefly recap our recent spin off from FAT Brands. On January 30, FAT Brands distributed approximately 5% of their ownership in Twin Hospitality Group Inc. Twin A common stock current Fab brand stockholders. While the remaining shares continue to be held by Fab Brands.

Twin Hospitality Group began trading on the NASDAQ at the time of the spin off and we are excited as we begin this next chapter. Separately, during the fourth quarter, we refinanced our credit facility to a new thirty year The refinancing stabilizes our financial structure and provides for an additional $25,000,000 in new store financing will allow us to further drive growth. Moving on to our fourth quarter results, I'll start by noting that 2024 was a fifty two week fiscal year, and 2023 was a fifty three week fiscal year. The fourth quarter of twenty twenty four was a thirteen week quarter and the fourth quarter of twenty twenty three was a fourteen week quarter. So there's one more week of operations in last year's results and the extra week falls in the fourth quarter. We Moving on to our quarterly results, our system wide sales which includes both Twin Peaks and Twin Bones, were $184,000,000 a 4% decrease from last year's quarter.

The extra week in twenty twenty three's quarter contributed $13,700,000 of system wide sales. Of the total, Twin Peaks system wide sales were $148,900,000 in the quarter, a slight decrease from $149,000,000 in the prior year quarter. The extra operating week contributed $10,800,000 to last year's quarter which was offset by an increase driven by new Twin Peaks Lodges have opened since the fourth quarter of twenty twenty three. Total revenue was $86,500,000 in the quarter, an 8.2% decrease from $94,200,000 in last year's quarter. This was driven by the incremental operating week in the prior year quarter, which contributed $6,500,000 in revenue lower same store sales, and the closure of Smokey Bone's location for conversion into Twin Peaks Lodges, partially offset by revenues generated by our new Twin Peaks Lodges. Looking at revenue between Twin Peaks and Smokey Bones, Twin Peaks revenue was $51,400,000 in the quarter, down $200,000 from $51,600,000 in the prior year quarter. The decrease was due to the extra operating week in the prior year quarter which contributed $3,600,000 of revenue mostly offset by the opening of new lodges. Smokey Bone's revenue was $35,100,000 in the quarter, down from $42,700,000 in the prior year quarter.

Smokey Bones revenue declined as we continue our strategic conversion of Smokey Bones locations which requires temporary closures. As Joe mentioned, approximately half of our Smokey Bone locations are part of this transition plan. Additionally, we have slowed our Smokey Bones marketing activity approximately $3,000,000 of revenue to Smokey Bones. Company owned restaurant sales were $77,600,000 in the quarter, a 9% decrease from $85,300,000 in last year's quarter. This decline was attributed to the temporary closure of two Smoky Bones locations during their conversion to Twin Peaks, lower same store sales and the additional operating week in last year's quarter, which contributed $3,000,000 in cup Twin Peaks same store sales decreased 0.6% in the quarter including a 1.9% decrease at company owned locations. And a 0.1% decrease at franchise locations. Similar to others in the industry, same store sales in January and February Of This Year Negatively Impacted By Weather And Other Macroeconomic Factors. As A Result, Quarter To Date, Twin Peaks same store sales have declined 2.8% As Joe mentioned, we have a full slate of marketing initiatives in place for the remainder of the year and are excited about the upcoming NCAA college basketball tournament in March as it gives us an opportunity to drive traffic into our lodges.

Franchise revenue remained steady at $8,900,000 in the quarter compared to last year's quarter as growth from our new Twin Peaks franchise openings offset the impact of the extra operating week in last year's quarter. Which contributed $600,000 in franchise revenue. Turning to costs and expenses, food and beverage costs in the quarter remained flat at 27.4% of company owned restaurant sales as menu price increases offset higher food cost. Looking ahead, we expect commodity inflation to be in the low single digits for 2025 Twin. Labor and benefits costs in the quarter improved 10 basis points to 32.8% over last year's quarter, as labor efficiencies and menu price increased off Other operating costs increased two ten basis points to 22% in the quarter compared to 19.9% in the prior year quarter. This increase was primarily due to sales deleveraging, and costs associated with the closure of two Smokey Bones locations we prepare for their conversion into Twin Peaks Lodges. [indiscernible] Occupancy costs increased 60 basis points to 8.2% in the quarter compared to 7.6% in last year's quarter due to deleveraging from lower sales. Restaurant level contribution margin decreased 170 basis points to 8.1% in the quarter, compared to 9.8% in last year's quarter.

Looking at individual brand performance, Twin Peaks restaurant level contribution margin decreased 60 basis points to 14.4% in the quarter compared to 15% in last year's quarter.

Reflecting the cost of managers and trading, and training teams associated with the opening of new lodges As Joe mentioned, we target a 16% restaurant level contribution margin for New Twin Peaks Lodges three years after opening. Smokey Bone's restaurant level contribution margin decreased four ten basis points to 0.5% in the quarter from 4.6% in last year's quarter.

As we continue to close higher performing Smokey Bones locations, for conversion to Twin Peaks Lodges, we expect continued pressure on Smoky Bone restaurant level contribution margins. Additionally, we have identified nine underperforming Smokey Bone locations are expected to be closed during 2025 Twin. Advertising expense decreased 50 basis points to 5.4% in the quarter, from 5.9% in last year's quarter due to the slowdown in advertising activity at Smokey Bones. General and administrative expenses increased to $12,100,000 in the quarter from $8,900,000 in the year ago quarter primarily due to a $5,000,000 store closure reserve recorded in the fourth quarter of twenty twenty four related to the nine Smokey Bones restaurants that are Total other expense net, which consisted primarily of interest expense, was $13,300,000 in the quarter compared to $8,100,000 in last year's quarter. Additionally, in the fourth quarter of twenty twenty four, we recognized a $2,400,000 non cash loss on extinguishment of debt related to the refinancing of our securitized debt. Net loss in the quarter was $12,000,000 compared to $8,800,000 in last year's quarter. Adjusted EBITDA decreased to $4,100,000 in the quarter compared to $6,500,000 in last year's quarter.

The extra operating week in the fourth quarter of twenty twenty three contributed $900,000 to adjusted EBITDA. Twin Peaks adjusted EBITDA was $6,200,000 in the quarter, compared to $7,500,000 in last year's quarter with the extra operating week in last year's quarter contributing $800,000 Smokey Bone's adjusted EBITDA was negative $1,900,000 in the quarter compared to negative $600,000 in last year's quarter with the extra operating week in last year's quarter contributing a positive $100,000 And with that, I'd like to thank you again for your interest in Twin Hospitality. Joe and I are now happy to answer any questions that you may have. Operator, please open the line for questions.

Our first question is from Roger Liptin with Liptin Financial Services. Please proceed.

Hi, Joe. Hi, Ken.

Good evening, Roger.

Welcome aboard. Welcome to the great unwatched publicly held marketplace.

Thank you.

Pricing, what kind of pricing have you taken in the last twelve months And what do you contemplate needing to [indiscernible] maintain or potentially improve your margins this year?

Sure. Our rolling price as of 12/2024 was just slightly over 200 basis points. Going into Q1, we're looking at taking that we took the price on some targeted markets that had wage increases just due to the state wage increases that occurred at the beginning of the year. We're still evaluating pricing opportunities with the current environment, but we're really just going to focus on other means of efficiency to focus on the margins We want to really emphasize the barbell strategy that we have with the menus, across all the Twin Peaks restaurants.

We really provide a compelling price to value proposition that appeals to a diverse range of guests. So we're going to be very mindful and avoid pricing if possible. We believe the consumers a bit tired of pricing. And so we want to make sure that we drive efficient Okay. Thank you.

And you mentioned the cost of conversion is lower, less than building from scratch And now that you've got a couple of smoky bones conversions under your belt, what do you think is a good estimate on what they'll cost?

Sure. Both of them were great pieces of real estate. [indiscernible] Every second generation building has different scope to work. But after the two, Lakeland ran us about $4,300,000 of total conversion would be leasehold improvements in FF And E, where Brandon was a little higher, it a little more in-depth. It's a bit of a bigger building and around us 4.7. But we think that's four zero three four point seven range is a very strong range to say in, whereas a ground up with dirt will run you between six point five and seven point five. So considerably less capital on a second generation building. And what we're finding in the Smoky Bones is going to be very similar. We've reviewed all the locations that we're wanting to contemplate converting. So we kind of have a good understanding of what that cost is going to range.

Obviously, when you open the walls up of a second generation building, there's some different things about them.

But nothing we really haven't seen considering over 80% of our our unit count is conversions.

Right. And when you open a conversion or that might open a build [indiscernible] Do you typically advertise a great deal locally or do you I mean, is it a soft opening or an aggressive [indiscernible] We approach it as a soft opening even though they don't appear that way.

When you have a strong piece of real estate, everybody sees you building it for six to months. So that's advertising in its own right. But we try to stay out of the normal marketing for the time being. We want to go soft but soft doesn't seem to be happening nowadays.

There's a lot of excitement around the new openings.

And the brand is only opened how long?

Two weeks now?

Yes, we're Twin our second week.

So we're very excited, very strong reception from the Greater Tampa area and the Brandon Brandon is obviously a little bigger market than Lakeland, but the reception was fantastic.

Okay. And when would be the next one, the next opening conversion or otherwise? Well, our next opening is actually going to be in Algonquin, Illinois, which is a suburb Chicago, one of our franchise partners is the process of doing that and they're in the final stages. Our training team is getting ready to leave. So we're very excited about that. It is a second generation. It's not a Smokey Bones. It's another brand that was out there. And then from a Smokey Bones perspective, we're in demo in Kissimmee Florida, which is Orlando. And then we have a couple other that were in the middle of permitting review with different cities.

Got it. And the one in Chicago, was that a a new market for you or do you have No, that'll be our we have a store in Oak Brook, Illinois, Warrenville, Illinois and then there's one just in the DMA of Chicago, which is Shearville, Indiana. So this will be, I guess, I'll call it our fourth in the Chicago DMA and we're very excited about We're trying to get close to Ken's hometown.

Okay. Do you have a strategy in terms of out of the 10 or 11 that will open this year, how many do you target X percentage in new markets and X percentage in in existing markets Or don't you worry too much about that.

No, we really just target the best real estate within our franchise community and within our corporate development areas. We don't necessarily concern ourselves if it's a new DMA or an existing DMA with multiple Twin Peaks. Obviously, we want to be mindful of any kind of cannibalization, so we have that in thought. Mind if we're too close or not too close. So it's really come into effect. We just want to make sure that we have the best piece of real estate and then we go from there with [indiscernible] I recently hesitate to ask a question. But I'll take a chance and say, over the how many stores have you closed? In the West twelve or fifteen years that you've been building this brand, Roger, I'd have to give you the exact number. I don't have many. Off of the top of my head, but I don't have the exact number, but I certainly can get that to you later. [indiscernible] Well, that's what a shareholder would be hoping, right?

Right. And generally, if there's a closure, within the life of Twin Peaks, it's generally if the market has shifted and the lease extensions have run out and we've chose to relocate to a fresher market, or refresher building, whatever it may be, And so that's generally the reason a market would close.

And so, sure, there have been with the brand nearing twenty years. Twin are some leases that are out there that are coming up on fifteen, twenty years. So there might have been some market shifts. So that would drag some of that Yes. Well, that I wasn't so concerned about a twenty year lease that expired. I'm more concerned about it. [indiscernible] [indiscernible] not doing the numbers to carry the the real estate?

Yes. Yes. Thank you, Roger.

Our next question is from Peter Salat with BTIG Please proceed.

Great. Thanks and congrats on a successful [indiscernible] I had a couple of questions maybe on 2025 Twin.

Just for clarity, the 9% to 11 Twin Peaks that you guys highlighted in 2025, is that all U. S? Or are there any units that we should be expecting internationally? We're anticipating approximately two in Mexico Twin.

We have seven currently now and our partners down there constantly working different real estate deals, but we anticipate two locations in Mexico if everything pans out with the lease negotiations.

So that's nine to sorry, seven U. S. [indiscernible] Got it. And then two in Mexico. Got it. And then does the does the conversions there's two conversions that you're planning are those included in the seven to nine or are those in addition to the seven to nine?

Those are included in the 7% to 9%. I think as we were talking about it, there were just two more corporate conversions that we were anticipating after we opened a corporate conversion this two weeks ago in Brandon, Florida. So that's what that was referencing. And then it's a part of the seven and nine domestics. Got it. Okay. And then just as we think about the smoky bones, I see the EBITDA for that brand slightly negative. Should we anticipate any more closures in 2025? I suspect as you if you close some of those really underperformed Yes, I'll take that one.

So as we've talked about, there are about 60 original Smokey Bones restaurants will convert half of them in the Twin Peaks locations. The ones that we won't convert really because there's a Twin Peaks down the street. So we don't want to cannibalize an existing Twin Peaks or that 30 that we are not going to convert, so far we've identified nine that will close in 2025. We're always watching the operations of the restaurant. So it is very possible that we would close additional restaurants. It will continue to be a drag on our margins. We broke out the margins by concept on the call. And those restaurants will be a drag for a period of time. But Joe and I and the team are working to close those as quickly as possible.

Understood. Okay. Very helpful. Just maybe a couple more in terms of on the development anything we should be aware of on the cadence of the development particularly in The U. S, the 7% to 9%, is it more backend weighted, is [indiscernible] How should we be thinking about that?

You'll see probably a bit of a gap in Q2 because a lot of construction will be starting. So we'll see Q3, Q4 Obviously, we just opened Brandon. We're getting ready to open Algonquin in Chicago's the Chicago market.

And then you'll probably see something start popping again in late Q3, Q4 and then it will start popping them open again.

You get you get some of those delays sometimes with permitting and what have you. Right. And then just on same store sales, I know we started off the year down to 8% here January, February kind of consistent with what we're hearing from others in the industry. How do you anticipate the year to progress? You expect some improvement from there sequentially? Are there Some easier compares or tougher compares we should be aware of, any calendar shift Anything that we should be aware of on that front?

Well, obviously, we started with that 02/1928 number with 1% of it roughly being weather. All experienced some fun weather that wasn't so fun for all of us. But as the weather starts to improve, the excitement we're seeing as we got into P3 here recently with all the excitement building around March Madness, NBA playoffs, NHL, we're optimistic of how the traffic will and the sales will continue to go. Always rollovers exist. There is some shift Twin the Easter rollover, but there's the bigger thing for us is shifts in the sports calendar and different games and the success and not so success of the home teams and what that affects the store So we always pay attention to that. We're always studying the calendar and who's winning and who's losing. So that's what we play with Twin the sports bar world. We're feeling a lot of that.

Are feeling a lot of energy with the basketball playoffs coming.

Got it. Best of luck. Thanks guys. Thanks Peter.

Thank you.

Our next question is from Greg Fortinov, Private Investor. Please proceed.

Hey, guys. Thanks for taking my call. I have a couple of questions. So there's been number of things written about Hooters in relation Twin sort of conjunction with Twin Peaks, Can you just talk about how the closing or the bankruptcy of Hoovers is affecting Twin Peaks, good, bad or nothing? Or how that works.

Sure. Obviously, we operate somewhat in the same segment. From our brand perspective, We have an all female Wake Theft just like they do But I think outside of that, the comparisons not very close. Have great buildings, unbelievable TV packages. A scratch kitchen, a very expensive bar and you can't match the 29 degree beer. So we're not really feeling the effects of them. We'll probably start picking up some clientele. But I think their numbers are pretty low I'm not sure how big of a clientele lift we'll get off of it. As far as real estate goes, we're always evaluating their real estate or anybody's real estate estate that is the best real estate that could be a possibility for a conversion for us. So that's kind of how we look at Hooters. We look at all the casual dining brands similar Everybody has an aspect of their brand that is competitive with us and we attack that and try to out operate and operate with excellence on those those parts of their success or not.

So basically no major effect one way or the other?

That's a long answer.

Okay.

I would add, Greg, that there's a lot of workers out there as we're opening restaurants, we're always looking for front of house, back of house folks and this probably gives us a bigger population to go pick from. That's a very good point, Ken.

Yes, that is a good point. There will be some possible influx of potential candidates for us.

Okay. That makes sense. Just out of curiosity, what percentage of yearly sales does March Madness account for? Is it outsized?

I'm sorry, what was the last part of the question? Is it Is it like an outsized percentage like the two weeks of March Madness?

Is that a account for a certain percentage of sales that's outsized versus anything else? Or is it there other things that need to be done? No, it's not outsized. I mean, we really play within the whole sports calendar. As you're aware, the sports calendar so stretched out nowadays, the expanded college football playoffs, the NFL playoffs, all the pay per views with our friends at UFC and any kind of boxing there's won this weekend will be exciting. You just see some energy levels go up and down, but I don't see heavy lopsided percentages for March Madness versus other sports. And the sports watchers spreading their eyes out on so many different things. Soccer is starting to drag into our stores. We're seeing a lot of good positive wins with that with Champions League and Premier League and have the FIFA Club World Cup getting ready for the World Cup in 2026. So there's so many different sporting events. March Madness does not lopsided us.

Okay. A couple more easy ones, then I'll get to the hard ones. So, nowadays, there's so many sports betting apps, all these things. Has it ever come up to do a partnership with anyone or some kind of promotions any of these or you're trying to stay neutral and not pick a side? Well, you bring up a good point. We have been approached and we've looked at it. Obviously, different states had different laws.

So that prevents a national wide sporting app within the stores. What we see is by us having three to four views of TVs for sports, everybody has their sports betting app. They're more Twin tune to watching all the different games, whether it's RedZone or multiple different games we have on with 12 different satellites so we want to just stay focused We're there for them to have all their games that they're betting to be able to watch. And we try not to be the gambler advisor that would not be prudent on our part. And so we want to just let them be able to see everything they're betting on. That's what we see mostly of and the different states with different rules and laws around it makes it a little complicated. Okay.

Are you able to give a EBITDA forecast for 2025? Are you guys doing that? Or mean I haven't heard it, but Can you?

Yes. We're not at this time, Greg, but I think by the second quarter we will.

What Joe and I and the team are working through really is the conversion of those restaurants we want to close and what we're going to close. So as that becomes more firm for us, which we believe it will in the next two or three months, then we'll be in a position to provide much more clarity.

Okay.

So on the last call, I'm not sure if I heard this right or wrong, I thought Andy said you were considering doing an offering. I'm assuming there's something other than equity or is it possible just want to make sure let me say differently, that you're not going to be doing an equity offering in any time sooner at this price.

When we refinanced our securitization facility, this is Twin Peaks. We agreed with our bondholders that we would raise $100,000,000 of Twin piece equity between now and October the October the piece of it at the April, and that we would use 75% of those proceeds to down debt. So there will be an equity raise between now and October.

Of $100,000,000 What happens from there? It obviously depends on price and Joe and I are speaking with our Board of Directors and our bankers and we're market's right and if it provides additional shareholder value.

We have a public security available to do that. Are you talking about equity or something else? That equity? Equity. I mean, because because selling stock at this price I mean, it just doesn't seem I mean, this is supposed to have a $1,000,000,000 valuation If you're selling stock at a $400,000,000 valuation, it doesn't seem very shareholder friendly. Agreed. What we don't want to do is sell shares at a low price. So there are options for us to raise that financing. It could be a preferred security, structure preferred, there are options for us to do that. So where the market is not favorable for us, we won't sell into the market. Okay. So last question, a little personal, you tell me you don't want to answer it on my business. But since the stock has dropped precipitously, I'm just wondering if there's been any discussion amongst you and your team about Buying stock when you're allowed. As a management team?

Or you I mean, I'm just I'll ask you, but I would imagine that you're all the three shops. What's that? [indiscernible] as an insider buyer. I mean, the stocks would seem like everyone would be looking their chops to own the stock. With a five year horizon, big growth and all that. [indiscernible] of I'll be careful how I answer it because I don't want to answer it in a way shouldn't answer it. I'll say this. I believe and I think it'll be a hard press to find a CEO or CFO that thinks their stock is overvalued. I believe there is a significant value to momentum play in Twin Peaks. There are there's a pipeline of over 100 units built Twin. Paid for. We've got the real estate for Smokey Bones. So yes, I believe that if you ask me if I would be a buyer at this price, I would personally. But I can't make that recommendation to anybody out there.

Well, I look forward to seeing your buys in the filings. And that's it for me. Congratulations on getting public and wish you the best. Thank you, Greg.

It looks like there are no more questions. I would like to turn the call back over to Joe Hammel for his closing remarks.

I'd like to thank everybody for joining us on our inaugural call. And we look forward to our next earnings call.

Thank you. This will conclude today's conference