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Dec 26, 2020
Driven Brands Q4 2020 Earnings Report
Driven Brands reported an increase in revenue and system-wide sales, driven by net store growth and the acquisition of ICWG, but same-store sales declined due to the COVID-19 pandemic.
Key Takeaways
Driven Brands Holdings Inc. reported strong fourth-quarter results, with a 58% increase in revenue to $288.5 million and a 24% increase in system-wide sales to $935.1 million. The company added 42 net new stores and experienced a decline in same-store sales of 3.4%. The acquisition of ICWG significantly contributed to the revenue growth.
System-wide sales increased by 24% to $935.1 million, driven by 36% net store growth.
Revenue increased by 58% to $288.5 million, primarily due to the acquisition of International Car Wash Group (ICWG).
The company added 42 net new stores during the quarter, with growth in Maintenance, Car Wash, and Paint, Collision, and Glass segments.
Same-store sales declined by 3.4%, with increases in Maintenance and Platform Services segments offset by a decline in Paint, Collision, and Glass segment due to reduced traffic from the COVID-19 pandemic.
Revenue by Segment
Forward Guidance
Driven Brands provided guidance for the fiscal year ending December 25, 2021, including net store growth targets for Maintenance, Car Wash, and Paint, Collision, and Glass segments, positive same-store sales growth, and Adjusted EBITDA as a percentage of revenue of approximately 23%.
Positive Outlook
- Maintenance: 80 to 90 stores; driven by roughly equal parts franchise and company-operated store growth
- Car Wash: 20 to 30 stores; driven primarily by company-operated store growth
- Paint, Collision, and Glass: 60 to 70 stores; driven by franchise store growth
- Positive same-store sales growth
- Adjusted EBITDA as a percentage of revenue of approximately 23%, consistent with fiscal year 2020.
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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