NASDAQ$DRVN

Driven Brands Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Driven Brands' Q2 2023 performance was marked by a 19% revenue increase, driven by 8% same-store sales growth and 7% net store growth, despite challenges in the Car Wash segment and U.S. glass business.

Driven Brands reported a 19% increase in revenue to $606.9 million for Q2 2023, driven by strong same-store sales and net store growth. Net income increased to $37.7 million, compared to a net loss in the prior year. The company is updating its full-year guidance due to weaker than anticipated performance in the Car Wash segment and U.S. glass business.

  • Revenue increased by 19% to $606.9 million compared to the prior year.
  • System-wide sales increased by 18% to $1.7 billion versus the prior year.
  • Net income increased to $37.7 million, or $0.22 per diluted share.
  • The company added 74 net new stores in the quarter.

Headline financials

Total Revenue

$607M

Previous: $509M+19.3%
EPS (adj)

$0.29

Previous: $0.35-17.1%
Car Wash Same Store Sales Growth

-4.0%

Previous: -2.7%-48.1%
Total same store sales growth

7.6%

Previous: 13.2%-42.4%
Auto Glass Now store count

1.1K

No prior period
Total store count

4.9K

Previous: 4.6K+7.2%
Free Cash Flow

$37.7M

Previous: -$57M+166.2%
Net Income

$37.7M

Previous: -$57M+166.2%
Operating Income

$97.6M

Previous: -$35.7M+373.5%
Gross Profit

$318M

Previous: $2M+15792.6%
Cash & Equivalents

$212M

Previous: $198M+7.2%
Total Assets

$6.84B

Previous: $5.91B+15.7%

Revenue & EPS history

Driven Brands · Revenue · Quarterly

$607M

Q2 2023+19.3%vs Q2 2022
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Driven Brands · $607M total across 5 segments · Q2 2023

  • Company-operated store sales
    $395M+21.8%
  • Supply and other revenue
    $76.2M+21.2%
  • Independently-operated store sales
    $61.5M+12.0%
  • Franchise royalties and fees
    $49.8M+11.0%
  • Advertising contributions
    $24.7M+12.0%

Forward guidance

Driven Brands is updating its fiscal year 2023 guidance based on weaker than anticipated performance in the Car Wash segment and U.S. glass business. Revenue is now expected to be $2.30 billion, Adjusted EBITDA is projected at $535 million, and Adjusted EPS is forecasted at $0.92.

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 2023

Historical avgQ2 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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