Driven Brands Holdings Inc. (DRVN) Bundle
A Brief History of Driven Brands
Driven Brands Holdings Inc., headquartered in Charlotte, NC, is the largest automotive services company in North America. As of 2024, the company operates a diverse portfolio of brands, including Take 5 Oil Change, Meineke Car Care Centers, Maaco, and CARSTAR, among others. Driven Brands services approximately 70 million vehicles annually through more than 5,100 locations across 14 countries.
Financial Performance Overview
For the third quarter of 2024, Driven Brands reported:
- Total Revenue: $591.7 million, a 2% increase from the previous year.
- Net Loss: $14.9 million, or $0.09 per diluted share, compared to a net loss of $799.3 million, or $4.83 per diluted share, in the same quarter of 2023.
- Adjusted EBITDA: $138.8 million, reflecting a 14% increase year-over-year.
- System-wide Sales: $1.641 billion, also a 2% increase from the prior year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $591.7 million | $581.0 million |
| Net Loss | $14.9 million | $799.3 million |
| Adjusted EBITDA | $138.8 million | $122.0 million |
| System-wide Sales | $1.641 billion | $1.609 billion |
Key Performance Indicators
As of September 28, 2024, the company reported the following metrics segmented by business lines:
| Segment | System-wide Sales (in millions) | Store Count | Same-Store Sales Growth | Segment Adjusted EBITDA (in millions) |
|---|---|---|---|---|
| Maintenance | $535.9 | 1,899 | 3.0% | $96.7 |
| Car Wash | $140.4 | 1,107 | 1.8% | $25.6 |
| Paint, Collision & Glass | $857.2 | 1,897 | 1.3% | $34.7 |
| Platform Services | $108.2 | 206 | N/A | $22.5 |
| Corporate / Other | N/A | N/A | N/A | $10.1 |
Capital and Liquidity
Driven Brands ended Q3 2024 with:
- Total Liquidity: $655.3 million, consisting of $204.2 million in cash and cash equivalents and $451.1 million in undrawn capacity on its revolving credit facility.
Outlook for Fiscal Year 2024
The company's adjusted outlook for fiscal year 2024 includes:
- Revenue: Expected to range from $2.33 billion to $2.43 billion.
- Adjusted EBITDA: Anticipated between $529 million and $559 million.
- Adjusted Earnings Per Share: Projected at $0.88 to $1.00.
- Same-Store Sales Growth: Estimated between 1% to 3%.
- Net Store Growth: Approximately 205 to 220 new locations.
Driven Brands continues to focus on strategic growth and operational efficiency as it aims to enhance its market position in the automotive services sector.
A Who Owns Driven Brands Holdings Inc. (DRVN)
Major Shareholders
As of 2024, Driven Brands Holdings Inc. (DRVN) has a diverse array of shareholders, including institutional investors and individual stakeholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 10.2% | 16,700,000 |
| The Vanguard Group, Inc. | 9.5% | 15,400,000 |
| Wellington Management Co. LLP | 8.3% | 13,400,000 |
| State Street Corporation | 7.8% | 12,600,000 |
| FMR LLC (Fidelity) | 5.7% | 9,200,000 |
| Other Institutional Investors | 58.5% | 94,000,000 |
| Individual Investors | 31.3% | 50,000,000 |
Executive Leadership and Ownership
The executive team at Driven Brands also holds a significant number of shares. Key executives include:
- Jonathan Fitzpatrick (President and CEO) - 1,200,000 shares, approximately 0.75% ownership
- Michael R. McMahon (CFO) - 800,000 shares, approximately 0.5% ownership
- Additional Executives - collectively hold about 2.5% of the company
Market Performance and Stock Information
As of October 31, 2024, Driven Brands Holdings Inc. (DRVN) trades at a price of $20.00 per share. The company's market capitalization is approximately $3.2 billion, reflecting a significant presence in the automotive services sector.
Recent Financial Highlights
Driven Brands reported the following financial metrics for Q3 2024:
- Revenue: $592 million
- Net Loss: $14.9 million
- Adjusted EBITDA: $138.8 million
- Same-store Sales Growth: 1.1%
Driven Brands has achieved a total system-wide sales of $1.6 billion during the same quarter, with a total of 5,109 locations across its various brands.
Driven Brands Holdings Inc. (DRVN) Mission Statement
Driven Brands Holdings Inc. operates as the largest automotive services company in North America, focusing on a diverse range of consumer and commercial automotive needs. As of 2024, the mission statement emphasizes delivering exceptional service and quality across its various brands, which include Take 5 Oil Change, Maaco, and Meineke Car Care Centers. The company aims to provide reliable, high-quality automotive services while fostering growth and profitability for its franchise partners and corporate locations.
Core Values
- Integrity: Commitment to ethical practices and transparency.
- Customer Focus: Prioritizing customer satisfaction and service excellence.
- Innovation: Continuously improving services and technology.
- Teamwork: Collaborating effectively across all levels of the organization.
- Community Engagement: Supporting local communities through various initiatives.
Financial Overview
As of September 28, 2024, Driven Brands reported a net revenue of $591.7 million, reflecting a 2% increase compared to the same period in 2023. The company generated system-wide sales of $1.64 billion, marking a 1.1% growth year-over-year. The adjusted EBITDA for the third quarter was $138.8 million, representing a 14% increase compared to the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenue | $591.7 million | $581.0 million | 2% |
| System-wide Sales | $1.64 billion | $1.62 billion | 1.1% |
| Adjusted EBITDA | $138.8 million | $122.1 million | 14% |
| Net Income (Loss) | $(14.9 million) | $(799.3 million) | N/A |
Store Count and Growth
Driven Brands has experienced consistent growth in its store count, reaching a total of 5,109 locations by the end of Q3 2024. This includes both franchise and company-operated stores across its various service segments.
| Segment | Store Count (Q3 2024) | Store Count (Q3 2023) |
|---|---|---|
| Maintenance | 1,899 | 1,732 |
| Car Wash | 1,107 | 1,133 |
| Paint, Collision & Glass | 1,897 | 1,920 |
| Platform Services | 206 | 208 |
| Total | 5,109 | 4,993 |
Future Outlook
For the fiscal year 2024, Driven Brands has reaffirmed its revenue outlook at approximately $2.33 to $2.43 billion, with an adjusted EBITDA range of $529 to $559 million. The company anticipates same-store sales growth between 1% to 3% and plans to add approximately 205 to 220 new stores.
| Fiscal Year 2024 Outlook | Current Range | Previous Range |
|---|---|---|
| Revenue | $2.33 - $2.43 billion | $2.35 - $2.45 billion |
| Adjusted EBITDA | $529 - $559 million | $535 - $565 million |
| Adjusted EPS | $0.88 - $1.00 | $0.88 - $1.00 |
| Same-store sales growth | 1% - 3% | N/A |
| Net store growth | 205 - 220 | N/A |
How Driven Brands Holdings Inc. (DRVN) Works
Company Overview
Driven Brands Holdings Inc. (DRVN) is the largest automotive services company in North America, providing a range of consumer and commercial automotive needs. The company operates various brands, including Take 5 Oil Change, Meineke Car Care Centers, and Maaco, among others. As of 2024, Driven Brands has over 5,100 locations across 14 countries, servicing approximately 70 million vehicles annually.
Financial Performance
For the third quarter of 2024, Driven Brands reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Revenue | $591.7 million | $581.0 million |
| Net Loss | ($14.9 million) | ($799.3 million) |
| Adjusted EBITDA | $138.8 million | $122.1 million |
| Earnings per Share (Diluted) | ($0.09) | ($4.83) |
| Adjusted Earnings per Share (Diluted) | $0.26 | $0.18 |
Key Performance Indicators
Driven Brands' performance can be analyzed through various segments:
| Segment | System-wide Sales (in millions) | Store Count | Same-Store Sales Growth | Segment Adjusted EBITDA (in millions) |
|---|---|---|---|---|
| Maintenance | $535.9 | 1,899 | 3.0% | $96.7 |
| Car Wash | $140.4 | 1,107 | 1.8% | $25.6 |
| Paint, Collision & Glass | $857.2 | 1,897 | 1.3% | $34.7 |
| Platform Services | $108.2 | 206 | N/A | $22.5 |
| Corporate / Other | N/A | N/A | N/A | $10.1 |
| Total | $1,641.8 | 5,109 | 1.1% | $138.8 |
Balance Sheet Highlights
As of September 28, 2024, Driven Brands has the following balance sheet figures:
| Assets | Value (in thousands) |
|---|---|
| Total Current Assets | $747,175 |
| Total Assets | $5,759,816 |
| Total Liabilities | $4,797,009 |
| Total Shareholders' Equity | $962,807 |
Cash Flow Overview
For the nine months ended September 28, 2024, Driven Brands reported the following cash flow metrics:
| Cash Flow Category | Value (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $174,654 |
| Capital Expenditures | ($185,453) |
| Cash Used in Business Acquisitions | ($2,759) |
| Cash Provided by (Used in) Investing Activities | $85,280 |
| Cash (Used in) Provided by Financing Activities | ($226,661) |
Future Outlook
Driven Brands has reaffirmed its guidance for fiscal year 2024, projecting:
- Revenue: Approximately $2.33 - $2.43 billion
- Adjusted EBITDA: Approximately $529 - $559 million
- Adjusted EPS: Approximately $0.88 - $1.00
- Same-store sales growth: 1% to 3%
- Net store growth: Approximately 205 to 220
The company continues to focus on leveraging its brands and expanding its market presence to drive growth and profitability in the automotive services sector .
How Driven Brands Holdings Inc. (DRVN) Makes Money
Revenue Streams
Driven Brands Holdings Inc. generates revenue through multiple channels within the automotive services sector. The primary revenue sources include:
- Franchise royalties and fees
- Company-operated store sales
- Independently-operated store sales
- Advertising contributions
- Supply and other revenue
Financial Performance Overview
As of the third quarter of 2024, Driven Brands reported total net revenue of $591.7 million, representing a 2% increase compared to the prior year. The system-wide sales for the same period reached approximately $1.6 billion, also reflecting a 2% year-over-year growth.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Net Revenue | $591.7 million | $581.0 million |
| System-wide Sales | $1.641 billion | $1.609 billion |
| Net Loss | $(14.9) million | $(799.3) million |
| Adjusted EBITDA | $138.8 million | $122.0 million |
Segment Performance
The company's revenue is segmented into several categories, each contributing differently to the overall financial results:
| Segment | System-wide Sales (in millions) | Revenue (in millions) | Adjusted EBITDA (in millions) |
|---|---|---|---|
| Maintenance | $535.9 | $278.2 | $96.7 |
| Car Wash | $140.4 | $142.2 | $25.6 |
| Paint, Collision & Glass | $857.2 | $109.0 | $34.7 |
| Platform Services | $108.2 | $52.2 | $22.5 |
Store Count and Growth
As of the end of Q3 2024, Driven Brands operates a total of 5,109 locations across various segments:
| Segment | Franchise Stores | Company-operated Stores | Independently-operated Stores | Total Store Count |
|---|---|---|---|---|
| Maintenance | 1,204 | 695 | — | 1,899 |
| Car Wash | — | 388 | 719 | 1,107 |
| Paint, Collision & Glass | 1,669 | 228 | — | 1,897 |
| Platform Services | 205 | 1 | — | 206 |
Outlook for 2024
Driven Brands has reaffirmed its outlook for the fiscal year 2024, projecting total revenue between $2.33 billion and $2.43 billion and Adjusted EBITDA in the range of $529 million to $559 million. The company anticipates same-store sales growth of 1% to 3% and net store growth of approximately 205 to 220 locations.
| Outlook Metric | Current Projection |
|---|---|
| Total Revenue | $2.33 - $2.43 billion |
| Adjusted EBITDA | $529 - $559 million |
| Same-store Sales Growth | 1% - 3% |
| Net Store Growth | 205 - 220 |
Driven Brands' diverse revenue streams and strategic growth initiatives position it as a leading player in the North American automotive services market, servicing approximately 70 million vehicles annually and generating around $2.3 billion in annual revenue from its operations.
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Article updated on 8 Nov 2024
Resources:
- Driven Brands Holdings Inc. (DRVN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Driven Brands Holdings Inc. (DRVN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Driven Brands Holdings Inc. (DRVN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.