FAT Brands Announces Intent to Take Twin Peaks Public

Global Restaurant Franchising Company Looks to Unlock Value and
Build on Growth of Twin Peaks Restaurant Chain

LOS ANGELES, June 06, 2023 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) today announced its plans to pursue an initial public offering of its Twin Peaks restaurant business. The transaction is intended to unlock value for FAT Brands’ shareholders by creating a separate publicly traded company and help facilitate continued strong growth of the restaurant chain and market segment.

Twin Peaks continues to redefine the sports lodge dining category, most recently opening its 100^th location. Since the acquisition by FAT Brands in October 2021, Twin Peaks’ footprint has continued to grow both in unit count and geographically, and now operates in 26 states and two countries. The brand is slated to open 18 to 20 new lodges in 2023 and expects to end 2023 with approximately 115 lodges, an almost 40 percent increase in unit count since the acquisition. The brand also has a committed development pipeline for an additional 109 franchise locations. Over the next several years, Twin Peaks plans to double its unit count to more than 200 lodges and increase the mix of franchised locations from 70 percent today to more than 80 percent. The planned unit growth is expected to increase systemwide sales to approximately $1.0 billion.

“Twin Peaks was an exceptional acquisition for us in 2021,” said Ken Kuick, Co-CEO and CFO of FAT Brands. “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 percent in 2022. We believe that creating a separate publicly traded company will provide the best opportunity to further enhance the brand, capitalize on its expansion plans and build upon its position as a leader in the sports lodge dining category.”

The timing and size of the transaction to take Twin Peaks public will be subject to market conditions and other factors. FAT Brands plans to remain the majority owner of the new publicly traded company following the transaction.

A registration statement has not yet been filed with the U.S. Securities and Exchange Commission. This press release does not constitute an offer to sell or the solicitation of any offer to buy, and there shall not be any sale of, any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.