NASDAQ$DRVN

Driven Brands Holdings Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Driven Brands reported strong second-quarter results with significant same-store sales growth and net new store additions.

Driven Brands Holdings Inc. reported a substantial increase in revenue and earnings per share for the second quarter of 2021. Revenue increased by 123% compared to the previous year, driven by the acquisition of ICWG and organic growth across all segments. The company added 70 net new stores and saw a significant increase in consolidated same-store sales. Driven Brands raised its fiscal year 2021 guidance due to the strong operating performance.

  • Revenue increased by 123% year-over-year, reaching $374.8 million.
  • Consolidated same-store sales grew by 38.7% for the quarter.
  • The company added 70 net new stores during the quarter.
  • Net income increased by 1051% compared to the prior year, reaching $35.2 million.

Headline financials

Total Revenue

$375M

Previous: $168M+123.3%
EPS (adj)

$0.25

Previous: -$0.01+2600.0%
Car Wash Same Store Sales Growth

35.2%

No prior period
Total same store sales growth

38.7%

Previous: -19.0%+303.7%
Total store count

4.3K

Previous: 3.2K+33.6%
Free Cash Flow

$35.2M

No prior period
Net Income

$35.2M

Previous: $3.06M+1051.2%
Operating Income

$63.6M

Previous: $21.3M+198.8%
Gross Profit

$2M

Previous: $168M-98.8%
Cash & Equivalents

$147M

Previous: $67.6M+117.8%
Total Assets

$4.82B

No prior period

Revenue & EPS history

Driven Brands · Revenue · Quarterly

$375M

Q2 2021+123.3%vs Q2 2020
Beat estimate in 7 of 10 quarters(70%)
ActualEstimate

Revenue by segment

Driven Brands · $375M total across 5 segments · Q2 2021

  • Company-operated store sales
    $206M+135.2%
  • Independently-operated store sales
    $56.4M
  • Supply and other revenue
    $54.7M+39.4%
  • Franchise royalties and fees
    $37.9M+33.9%
  • Advertising contributions
    $19.6M+55.7%

Forward guidance

The Company has raised its guidance for fiscal year 2021, expecting revenue of approximately $1.4 billion, adjusted EBITDA of approximately $345 million, and adjusted earnings per share of approximately $0.83.

Tailwinds

  • Revenue of approximately $1.4 billion
  • Adjusted EBITDA of approximately $345 million
  • Adjusted Earnings per Share of approximately $0.83
  • Low double-digit same-store sales growth with positive same-store sales across all segments
  • Maintenance: 80 to 90 stores net store growth

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 Q2 2021

Historical avgQ2 2021

-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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