Fat Brands is adding another restaurant brand to its growing menu.
The owner of Fatburger, Johnny Rockets, Marble Slab Creamery and other restaurant companies has agreed to acquire casual dining chain Twin Peaks from Garnett Station Partners for $300 million. Fat Brand said the acquisition will expand its portfolio from quick-service, fast-casual and casual dining concepts into the fast-growing segment of “polished casual dining.”
Founded in 2005 in the Dallas suburb of Lewisville, Twin Peaks is designed as the ultimate sports lodge. The company operates 82 locations in 25 states. It expects to open another six locations by the end of the year, with 18 more under development.
With 82 stores currently open, six additional stores due to open by year-end 2021
The addition of Twin Peaks is expected to increase Fat Brands’ systemwide sales from approximately $1.4 billion to more than $1.8 billion across more than 2,100 stores around the globe, the majority of which are franchised.
This is Fat Brands’ second major acquisition this year. In June, it agreed to acquire Global Franchise Group, which operates five quick-serve brands, for $442.5 million in cash and stock.In 2020, the company acquired Johnny Rockets for approximately $25 million.
“Following the recent acquisitions of Johnny Rockets and Global Franchise Group, this acquisition comes at a time when we’re seeking to expand our market segments into sports and polished casual dining,” said Fat Brands CEO Andy Wiederhorn. “As a strong, growth-oriented concept, Twin Peaks complements our existing brands.”
Wiederhorn added that Twin Peaks has average unit volumes between $4.5 million and $6.5 million for new units, which is at the high end of industry growth standards.
“The exceptional unit economics and proven track record of the Twin Peaks brand has led to extraordinary demand for new store openings from new and existing franchisees,” he said. “The current pipeline of new franchise locations as well as the large potential for global expansion of this successful brand is what brought us to the table and makes this a truly unique acquisition for Fat Brands.”
“The sale of Twin Peaks to FAT Brands marks a major milestone for us after a year of consistent sales growth as we work towards our vision of becoming a global-facing brand,” said Joe Hummel, CEO of Twin Peaks. “FAT Brands has a proven track record of scaling and introducing concepts to international markets. We’re excited to be part of Andy’s vision as he continues to build FAT Brands.”
Fat Brands currently owns 14 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises over 2,000 units worldwide.