Garnett Station Partners, LLC today announced an agreement by one of its affiliates to sell Twin Peaks, a national sports bar & grill franchise company, to FAT Brands (NASDAQ: FAT) for $300 million. Based in Dallas, Texas and founded in 2005, Twin Peaks offers high-quality, made-from-scratch food and a category-defining beverage menu, which includes its signature 29-degree draft beer, in a comfortable, polished mountain sports lodge setting.
“Twin Peaks is a truly unique concept within the casual dining industry, with a best-in-class management team and committed franchisees, as demonstrated by its significant growth and consistently strong financial results throughout its partnership with Garnett Station,” said Matt Perelman, Partner at Garnett Station Partners. “We have enjoyed working with the Twin Peaks team and wish them continued success with their new partners at FAT Brands, a leader in managing franchised, casual dining restaurant concepts.”
“Our business has returned to tremendous growth and success over the past six months – from rapid franchise development to same store sales outperformance – and we’re just getting started,” said Joe Hummel, Chief Executive Officer at Twin Peaks. “We are thankful for the years of support and guidance from Garnett Station, whose unique multi-industry experience has helped us identify value creation levers across all aspects of our business. Our new partnership with FAT Brands will allow us to accelerate our ambitious growth trajectory, with the synergies now available through our new parent. Above all, we’re excited to continue working with our franchisees to create great experiences for our customers and long-term growth.”
A Garnett Station affiliate invested in Twin Peaks in March 2019 and Garnett Station worked closely with the Company’s leadership team to identify growth opportunities for the already high-performing business. Consistent same store sales outperformance in the industry coupled with a detailed domestic and international development expansion plan has made Twin Peaks an attractive investment opportunity for franchisees.
Since Garnett Station’s strategic investment, Twin Peaks has increased unit count by approximately 15%, grown adjusted earnings by approximately 50% and significantly increased both its same store sales and company revenues. Today Twin Peaks is well positioned within the sports-driven casual dining industry, with a strong financial track record and significant opportunities for growth.
Duff & Phelps Securities, LLC served as financial advisor to Garnett Station Partners and Kirkland & Ellis LLP acted as legal counsel to Garnett Station Partners. Greenberg Traurig LLP acted as legal counsel to FAT Brands Inc.