NASDAQ$DRVN

Driven Brands Holdings Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Driven Brands reported a slight revenue increase and maintained same-store sales growth for the 14th consecutive quarter.

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.

Headline financials

Total Revenue

$612M

Previous: $607M+0.8%
EPS

$0.18

Previous: $0.29-37.9%
Take 5 System-wide Sales

$347M

No prior period
Franchise Brands System-wide Sales

$1.1B

No prior period
Car Wash System-wide Sales

$60.3M

No prior period
Auto Glass Now store count

720

Previous: 1.1K-36.3%
Franchise Brands store count

2.6K

No prior period
Total system-wide sales

$1.58B

No prior period
Take 5 store count

1.1K

No prior period
Total store count

4.7K

Previous: 4.9K-5.5%
Capital Expenditures

-$66.4M

No prior period
Free Cash Flow

$30.2M

Previous: $37.7M-20.1%
Net Income

$30.2M

Previous: $37.7M-20.1%
Operating Income

$80.5M

Previous: $97.6M-17.5%
Cash & Equivalents

$149M

Previous: $212M-29.8%
Total Assets

$5.83B

Previous: $6.84B-14.9%

Revenue & EPS history

Driven Brands · Revenue · Quarterly

$612M

Q2 2024+0.8%vs Q2 2023
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Driven Brands · $460M total across 4 segments · Q4 2025

  • Company-operated store sales
    $316M
  • Supply and other revenue
    $70.2M
  • Franchise royalties and fees
    $45.4M
  • Advertising contributions
    $28.3M

Forward guidance

The company updated its financial outlook for fiscal year 2024.

Tailwinds

  • 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.

Headwinds

  • 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
  • Car Wash same-store-sales-growth decreased -4.1%.
  • Paint, Collision & Glass same-store-sales-growth decreased -0.5%.

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 2024

Historical avgQ2 2024

-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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