NASDAQ$DRVN

Driven Brands Holdings Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Driven Brands' Q3 2022 earnings showcased strong growth, fueled by same-store sales and strategic acquisitions, leading to raised full-year guidance.

Driven Brands reported a strong third quarter with a 39% increase in revenue to $516.6 million, driven by a 11.9% increase in consolidated same-store sales and net store growth. Net income increased by 16% to $38.4 million, and the company raised its full-year guidance.

  • Revenue increased by 39% to $516.6 million, driven by same-store sales and net store growth.
  • Consolidated same-store sales increased by 11.9%.
  • The company added 101 net new stores during the quarter.
  • Net income increased by 16% to $38.4 million.

Headline financials

Total Revenue

$517M

Previous: $371M+39.2%
EPS (adj)

$0.32

Previous: $0.26+23.1%
Car Wash Same Store Sales Growth

-9.0%

No prior period
Total same store sales growth

11.9%

Previous: 12.8%-7.0%
Total store count

4.7K

Previous: 4.4K+7.7%
Free Cash Flow

$38.4M

Previous: $33.1M+15.9%
Net Income

$38.4M

Previous: $33.1M+15.9%
Operating Income

$95.8M

Previous: $63.7M+50.3%
Gross Profit

$2M

Previous: $2M+0.0%
Cash & Equivalents

$190M

Previous: $115M+65.0%
Total Assets

$6.12B

Previous: $5.01B+22.3%

Revenue & EPS history

Driven Brands · Revenue · Quarterly

$517M

Q3 2022+39.2%vs Q3 2021
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Driven Brands · $517M total across 5 segments · Q3 2022

  • Company-operated store sales
    $341M+59.6%
  • Supply and other revenue
    $67.3M+32.7%
  • Franchise royalties and fees
    $45.6M+17.0%
  • Independently-operated store sales
    $40.5M-15.6%
  • Advertising contributions
    $22M+11.4%

Forward guidance

The Company has raised its guidance for the fiscal year to account for its strong operating performance and M&A activity in the third quarter of 2022, while keeping fourth quarter expectations unchanged.

Tailwinds

  • Revenue of approximately $2.0 billion.
  • Adjusted EBITDA of approximately $503 million.
  • Adjusted earnings per share of approximately $1.21.
  • Low-double-digit same-store sales growth.
  • Net store growth of approximately 370.

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 Q3 2022

Historical avgQ3 2022

-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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