NASDAQ$DRVN

Driven Brands Holdings Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Driven Brands reported strong first-quarter results, with revenue increasing by 20% driven by same-store sales growth of 9% and net store growth of 7%.

Driven Brands Holdings Inc. reported a 20% increase in revenue to $562.5 million for the first quarter, driven by a 9% increase in same-store sales and a 7% increase in net store growth. Net income decreased by 14% to $29.7 million, or $0.17 per diluted share. The company reaffirms its fiscal year 2023 guidance.

  • Revenue increased 20 percent to $562.5 million, driven by same-store sales and net store growth.
  • Consolidated same-store sales increased 9 percent.
  • The Company added 59 net new stores during the quarter.
  • Net Income decreased 14 percent to $29.7 million or $0.17 per diluted share.

Headline financials

Total Revenue

$562M

Previous: $468M+20.1%
EPS (adj)

$0.25

Previous: $0.28-10.7%
Car Wash Same Store Sales Growth

-11.3%

Previous: 6.6%-271.2%
Total same store sales growth

9.0%

Previous: 15.6%-42.3%
Total store count

4.9K

Previous: 4.5K+7.5%
Free Cash Flow

$29.7M

Previous: $34.4M-13.6%
Net Income

$29.7M

Previous: $34.4M-13.6%
Operating Income

$77.2M

Previous: $73.7M+4.7%
Gross Profit

$231M

Previous: $2M+11437.6%
Cash & Equivalents

$191M

Previous: $271M-29.5%
Total Assets

$6.71B

Previous: $5.88B+14.1%

Revenue & EPS history

Driven Brands · Revenue · Quarterly

$562M

Q1 2023+20.1%vs Q1 2022
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Driven Brands · $562M total across 5 segments · Q1 2023

  • Company-operated store sales
    $376M+28.6%
  • Supply and other revenue
    $68.7M+24.3%
  • Independently-operated store sales
    $52.5M-16.7%
  • Franchise royalties and fees
    $43.5M+14.9%
  • Advertising contributions
    $21.7M+10.0%

Forward guidance

The Company reiterates its expectations for fiscal year 2023 reflecting continued market shares gains driven by both robust same-store sales and net store growth:

Tailwinds

  • Revenue of approximately $2.35 billion.
  • Adjusted EBITDA1 of approximately $590 million.
  • Adjusted Earnings Per Share1 of approximately $1.21.
  • The Company has not included future M&A in its guidance for fiscal year 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-3.4%

Avg return

Earnings day

-1.8%

Avg return

5 days after

+0.6%

Avg return

30 days after

46%

11 / 24 earnings

Positive

+10.4%

Q1 2022

Best reaction

-37.7%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q4 2025-36.4%+3.9%
Q3 2025+5.5%-2.8%+7.6%
Q2 2025+1.9%-2.4%+13.1%
Q1 2025+6.8%+2.0%+1.3%
Q4 2024+2.1%+14.4%+16.8%
Q3 2024+3.9%+7.3%+18.7%
Q2 2024+1.0%-0.4%+6.7%
Q1 2024-20.9%-21.6%-21.6%
Q4 2023-7.6%-6.3%+5.2%
Q3 2023+2.6%+1.3%+20.3%
Q2 2023-37.7%-40.4%-42.5%
Q1 2023-4.5%-7.1%-16.1%
Q4 2022-0.5%+1.4%+0.7%
Q3 2022-4.6%-0.9%-4.6%
Q2 2022+2.0%+6.7%+8.0%
Q1 2022+10.4%+9.1%+12.9%
Q4 2019-3.8%-4.5%-6.8%
Q4 2021-1.2%-4.3%-5.6%
Q3 2020-1.9%+2.4%+3.2%
Q3 2021-2.0%+4.3%-0.6%
Q2 2020-0.1%-0.9%+5.2%
Q2 2021+3.3%+2.7%-4.0%
Q1 2021+6.9%+3.0%+7.7%
Q4 2020-5.8%-10.4%-12.1%
Q1 2020
Q1 2019

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