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Jun 29, 2024
Driven Brands Q2 2024 Earnings Report
Driven Brands reported a slight revenue increase and maintained same-store sales growth for the 14th consecutive quarter.
Key Takeaways
Driven Brands reported a 1% increase in revenue to $612 million compared to the prior year. System-wide sales also increased by 1% to $1.7 billion, driven by same-store sales growth of 0.5% and the addition of 115 net new units. Net income was $30.2 million, or $0.18 per diluted share, while adjusted EBITDA increased by 4% to $152.2 million.
Driven Brands achieved its 14th consecutive quarter of same-store sales growth.
Take 5 Oil Change experienced revenue growth of 16%, supported by 6% same-store sales growth and 19% year-over-year unit growth.
The company ended the quarter with total liquidity of $316.1 million.
Michael Diamond was appointed as the Chief Financial Officer, effective August 9, 2024.
Driven Brands
Driven Brands
Driven Brands Revenue by Segment
Revenue by Segment
Franchise royalties and fees Revenue
CapyFin.comCompany-operated store sales Revenue
CapyFin.comIndependently-operated store sales Revenue
CapyFin.comAdvertising contributions Revenue
CapyFin.comSupply and other Revenue
CapyFin.com Forward Guidance
The company updated its financial outlook for fiscal year 2024.
Positive Outlook
- Revenue is expected to be at the low end of the original outlook (~$2.35 - $2.45 billion).
- Adjusted EBITDA is expected to be in the mid-to-high end of the original outlook (~$535 - $565 million).
- Adjusted EPS is expected to be at the high end of the original outlook (~$0.88 - $1.00).
- Net store growth is expected to be approximately 205 to 220, consistent with the original outlook.
- The company closed an offering by certain of its subsidiaries for $275.0 million in Series 2024 Class A-2 senior notes and $400.0 million in variable funding securitization senior notes.
Challenges Ahead
- Same-store sales growth is expected to be 1% to 3%, revised from the original outlook of 3% to 5%.
- The company has not included potential future M&A in its outlook for fiscal year 2024.
- The company's net income decreased from $37.7 million to $30.2 million
- Car Wash same-store-sales-growth decreased -4.1%.
- Paint, Collision & Glass same-store-sales-growth decreased -0.5%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income