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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.
Revenue by Segment
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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