Driven Brands (DRVN)

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Grabar Law Office is Investigating Claims on Behalf of Long-Term Shareholders of Nextracker, Inc. (NASDAQ: NXT); Driven Brands Holdings, Inc. (NASDAQ: DRVN); Extreme Networks, Inc. (NASDAQ: EXTR); and MGP Ingredients, Inc. (NASDAQ: MGPI)
Newsfilter· 2025-02-26 14:43
Nextracker, Inc. (NASDAQ:NXT) - Grabar Law Office is investigating claims on behalf of long-term shareholders regarding potential breaches of fiduciary duties by certain officers of Nextracker [1] - A securities fraud class action complaint alleges that Nextracker failed to disclose severe impacts of project delays on its business and financial results, including permitting and interconnection delays that impaired revenue conversion [3] - The complaint also claims that Nextracker could not offset negative impacts from project delays through increased client demand as previously represented [3] Driven Brands Holdings, Inc. (NASDAQ:DRVN) - Grabar Law Office is investigating claims on behalf of long-term shareholders concerning potential breaches of fiduciary duties by certain officers of Driven Brands [5] - A securities fraud class action complaint alleges that Driven Brands made materially false statements regarding its ability to integrate acquired businesses and the performance of its car wash segment [7] Extreme Networks, Inc. (NASDAQ:EXTR) - Grabar Law Office is investigating claims on behalf of shareholders regarding potential breaches of fiduciary duties by certain officers of Extreme Networks [9] - A securities fraud class action complaint alleges that Extreme Networks made false statements about adverse client demand trends and the status of its backlog, which was decreasing faster than represented [10] MGP Ingredients, Inc. (NASDAQ:MGPI) - Grabar Law Office is investigating claims on behalf of shareholders concerning potential breaches of fiduciary duties by certain officers of MGP Ingredients [12] - A securities fraud class action complaint alleges that MGP Ingredients made misleading statements about strong demand and inventory levels, while there was actually a slowdown in consumption and oversupply [14]
Driven Brands (DRVN) - 2024 Q4 - Earnings Call Transcript
2025-02-25 20:58
Financial Data and Key Metrics Changes - For Q4 2024, Driven Brands reported revenue of $564 million, a 2% increase year-over-year, with adjusted EBITDA of $130.7 million and diluted adjusted EPS of $0.30 [10][11][50] - For the full fiscal year 2024, revenue reached $2.3 billion, with adjusted EBITDA of $553 million, reflecting a 2% and 7% increase respectively compared to the previous year [11][56] - The company achieved a net leverage ratio of 4.4x in Q4, down from 4.5x in Q3, with a total debt paydown of approximately $248 million for the year [19][54] Business Line Data and Key Metrics Changes - The Take 5 Oil Change segment experienced 9.2% same-store sales growth in Q4, contributing to a total of 174 net new stores for the fiscal year [21][43] - The Paint, Collision & Glass segment generated revenue of $97.3 million with adjusted EBITDA of $33 million, while the Platform Services segment reported revenue of $40.2 million and adjusted EBITDA of $16.3 million [39][40] - The Car Wash segment reported revenue of $143.4 million and adjusted EBITDA of $28.7 million, with same-store sales growth of 7.9% [40] Market Data and Key Metrics Changes - Driven Brands noted that the ongoing inflationary environment is expected to pressure consumer spending, particularly among lower-income households, but anticipates some mitigation from strong performance in commercial and needs-based businesses [12][60] - The company reported system-wide sales growth of 3.6% to $6.5 billion for the full year, driven by same-store sales growth of 1.3% and net unit growth of 191 units [56] Company Strategy and Development Direction - The company plans to focus on three key priorities for 2025: delivering the 2025 outlook, utilizing cash flow to reduce debt, and active portfolio management [9][27] - A definitive agreement has been made to sell the U.S. car wash business, with the transaction expected to close in Q2 2025 [13][41] - The company will adopt a simplified segment structure starting Q1 2025, with Take 5 Oil Change as a stand-alone segment to enhance clarity for investors [14][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic macroeconomic environment, emphasizing the strength of the Take 5 Oil Change brand as a growth engine [12][27] - The company anticipates a more normalized level of same-store sales growth in 2025, following a particularly strong Q4 [36][86] - Management highlighted the importance of investing in frontline employees and maintaining high customer loyalty through service excellence [37][102] Other Important Information - The company has sold approximately $208 million in assets during fiscal year 2024, with over 75% of the divestiture process completed [18][54] - The company plans to provide quarterly unaudited pro forma results for FY 2024 in the new segment structure starting in mid-March 2025 [68] Q&A Session Summary Question: Can you provide color on the 2025 outlook and expected growth? - Management indicated that the U.S. car wash business contributed approximately $50 million of adjusted EBITDA, and the growth in 2025 will primarily come from Take 5 Oil Change, which has a strong unit pipeline and customer engagement [73][74] Question: What is the expected breakdown of unit growth between segments? - The majority of the expected net unit growth of 175 to 200 units will come from the Take 5 pipeline, with a historical trend of 2/3 being franchise stores and 1/3 company-owned [105][108] Question: What drove the increase in corporate costs in Q4? - The increase was attributed to performance-based compensation and share-based compensation related to IPO grants, reflecting strong company performance [102][103] Question: What is the plan for the International Car Wash segment? - The International Car Wash business will continue to be owned and operated, with stable performance expected, and management remains active in assessing its components [126] Question: Is there an appetite for M&A following the car wash sale? - While historically acquisitive, the company is currently focused on organic growth but remains open to accretive opportunities in the automotive aftermarket space [128]
Driven Brands (DRVN) - 2024 Q4 - Earnings Call Transcript
2025-02-25 20:00
Driven Brands Holdings, Inc. (NASDAQ:DRVN) Q4 2024 Earnings Conference Call February 25, 2025 8:30 AM ET Company Participants Joel Arnao - SVP, FP&A, Treasury and IR Jonathan Fitzpatrick - President, CEO & Director Daniel Rivera - EVP & COO Michael Diamond - CFO, EVP & Interim Principal Accounting Officer Conference Call Participants Pedro Gil - Morgan Stanley Justin Kleber - Baird Madison Callinan - Canaccord Genuity Chris O'Cull - Stifel Vicky Liu - Bank of America Merrill Lynch Phillip Blee - William Bla ...
Compared to Estimates, Driven Brands Holdings (DRVN) Q4 Earnings: A Look at Key Metrics
ZACKS· 2025-02-25 16:00
For the quarter ended December 2024, Driven Brands Holdings Inc. (DRVN) reported revenue of $564.12 million, up 1.9% over the same period last year. EPS came in at $0.30, compared to $0.19 in the year-ago quarter.The reported revenue represents a surprise of -1.18% over the Zacks Consensus Estimate of $570.83 million. With the consensus EPS estimate being $0.17, the EPS surprise was +76.47%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compa ...
Driven Brands Holdings Inc. (DRVN) Q4 Earnings Surpass Estimates
ZACKS· 2025-02-25 14:55
Driven Brands Holdings Inc. (DRVN) came out with quarterly earnings of $0.30 per share, beating the Zacks Consensus Estimate of $0.17 per share. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 76.47%. A quarter ago, it was expected that this company would post earnings of $0.23 per share when it actually produced earnings of $0.26, delivering a surprise of 13.04%.Over the last four quarters, ...
Driven Brands (DRVN) - 2024 Q4 - Annual Results
2025-02-25 13:01
Financial Performance - Fiscal 2024 revenue increased by 2% to $2.3 billion, driven by 1% same-store sales growth and 4% net store growth[2]. - Adjusted EBITDA for fiscal 2024 was $553 million, up 7% compared to the prior year[3]. - Net loss for fiscal 2024 was $292 million, or $1.82 loss per diluted share, an improvement from a net loss of $745 million, or $4.53 loss per diluted share in the prior year[3]. - Fourth quarter revenue was $564 million, a 2% increase year-over-year, with system-wide sales of $1.6 billion, up 5%[6]. - Adjusted Net Income for the fourth quarter was $48 million, or $0.30 per diluted share, compared to $28 million, or $0.17 per diluted share in the prior year[7]. - Total net revenue for the three months ended December 28, 2024, was $564,117,000, an increase of 1% compared to $553,677,000 for the same period in 2023[23]. - Adjusted Net Income for the year ended December 28, 2024, was $186.3 million, compared to $142.5 million for the year ended December 30, 2023, representing a 30.7% increase[33]. - Adjusted Earnings Per Share (EPS) for the year ended December 28, 2024, was $1.14, up from $0.86 for the year ended December 30, 2023, indicating a 32.6% growth[33]. - Adjusted EBITDA for the year ended December 28, 2024, was $552.7 million, compared to $516.9 million for the year ended December 30, 2023, reflecting a 6.9% increase[37]. - The net loss for the three months ended December 28, 2024, was $312.0 million, compared to a net loss of $13.1 million for the same period in 2023[33]. Operational Highlights - The company ended the fourth quarter with total liquidity of $648.7 million, including $170 million in cash and cash equivalents[10]. - Total operating expenses for the year ended December 28, 2024, were $2,479,819,000, down from $2,990,562,000 in 2023, indicating a reduction of approximately 17%[23]. - Cash provided by operating activities for the year ended December 28, 2024, was $241,447,000, compared to $235,167,000 in 2023, showing a slight increase of 3%[26]. - The company reported a basic loss per share of $1.91 for the three months ended December 28, 2024, compared to a loss of $0.08 per share in the same period of 2023[23]. - The company’s accumulated deficit increased to $1,002,583,000 as of December 28, 2024, from $710,087,000 in 2023[25]. - The company plans to continue focusing on cost reduction strategies and operational efficiencies to improve financial performance in the upcoming quarters[29]. Future Outlook - Fiscal year 2025 outlook projects revenue of approximately $2.05 - $2.15 billion, excluding the U.S. car wash business[12]. - Expected same-store sales growth for fiscal 2025 is between 1% and 3%, with net store growth of approximately 175 - 200[12]. - A CEO transition is set for May 9, 2025, with Daniel Rivera appointed as the new CEO[14]. - The company expects to continue incurring acquisition-related costs in future periods as part of its growth strategy[40]. Sales and Store Growth - Company-operated store sales reached $387,663,000 for the three months ended December 28, 2024, up from $366,668,000 in the prior year, reflecting a growth of 6%[23]. - The total store count increased to 5,179 as of December 28, 2024, up from 4,988 stores a year earlier, indicating a growth of approximately 3.8%[44]. - For the year ended December 28, 2024, total system-wide sales amounted to $6,509,318,000, compared to $6,283,728,000 for the year ended December 30, 2023, marking a year-over-year increase of about 3.6%[45]. - Company-operated stores contributed $1,544,932,000 to total system-wide sales for the year ended December 28, 2024, compared to $1,526,353,000 in the previous year, showing a slight increase of approximately 1.2%[45]. - Franchise stores generated system-wide sales of $1,158,852,000 in Q4 2024, compared to $1,107,296,000 in Q4 2023, reflecting a year-over-year increase of about 4.7%[44]. - The franchise store count remained stable at 3,129 as of December 28, 2024, consistent with the previous year, while independently operated stores totaled 720, unchanged from the prior year[45]. Segment Performance - The company reported a significant increase in paint, collision, and maintenance services, with total sales reaching $4,751,990,000 for the year ended December 28, 2024, compared to $4,560,980,000 in 2023, reflecting a growth of approximately 4.2%[45]. - The car wash segment saw total sales of $580,554,000 for the year ended December 28, 2024, compared to $591,752,000 in the previous year, indicating a decline of about 1.9%[45]. - The overall performance indicates a positive trend in system-wide sales and store expansion, positioning the company for continued growth in the upcoming fiscal year[45]. - The company plans to continue expanding its service offerings and store locations to drive future growth, focusing on enhancing customer experience and operational efficiency[44].
Grabar Law Office Is Investigating Claims on Behalf of Long-Term Shareholders of Driven Brands Holdings, Inc. (NASDAQ: DRVN); Extreme Networks, Inc. (NASDAQ: EXTR); MGP Ingredients, Inc. (NASDAQ: MGPI); and TaskUs, Inc. (NASDAQ: TASK)
Newsfilter· 2025-02-24 13:02
PHILADELPHIA, Feb. 24, 2025 (GLOBE NEWSWIRE) -- Driven Brands Holdings, Inc. (NASDAQ:DRVN): Grabar Law Office is investigating claims on behalf of long-term Driven Brands Holdings, Inc. (NASDAQ:DRVN) shareholders. The investigation concerns whether certain officers of the company have breached their fiduciary duties they owed to the company. If you have held Driven Brands (NASDAQ:DRVN) shares continuously since prior to October 27, 2021, you can seek corporate reforms, the return of funds back to the Compa ...
SHAREHOLDER ALERT: Kaskela Law LLC Announces Investigation of Driven Brands Holdings, Inc. (NASDAQ: DRVN) and Encourages Long-Term Investors to Contact the Firm
GlobeNewswire News Room· 2025-02-17 13:30
Core Viewpoint - Kaskela Law LLC is investigating Driven Brands Holdings Inc. for potential securities fraud related to misleading statements made by the company and its executives regarding key growth initiatives and financial performance [2][3]. Summary by Relevant Sections Securities Fraud Allegations - A securities fraud complaint has been filed against Driven Brands on behalf of investors who purchased shares between October 27, 2021, and August 1, 2023, alleging that the company made materially false and misleading statements and omitted critical information regarding its auto-glass business and car wash operations [2]. - The complaint highlights that Driven's executives assured investors of progress in their growth strategies, which were later revealed to be significantly behind schedule, leading to a 24% reduction in guidance on August 2, 2023 [2]. Financial Impact - Following the announcement of the guidance cut, Driven disclosed a substantial decline in same-store car wash sales and a nearly $1 billion write-down in its car wash segment, representing over 10% of the company's total asset value as of the end of 2022 [2]. - The stock price of Driven fell by $10.63, or over 41%, closing at $15.20 per share on August 2, 2023, amid unusually high trading volume [2]. Investigation Focus - The investigation aims to determine if Driven's board of directors violated securities laws or breached fiduciary duties in connection with the alleged misconduct [3].
Top 2 Auto Maintenance Stocks Gearing Up for 2025
MarketBeat· 2025-01-08 12:45
A robust vehicle sales market bodes well for the auto maintenance market since consumers will need to service their cars to keep them operating efficiently. Even during contractions in the auto/tires/trucks sector, maintenance is always a constant. Whether this entails replacing tire parts or getting repairs, car washes, and oil changes, auto maintenance is a fact of life for any automobile owner. Here are two auto maintenance and service industry stocks that could gain more in 2025. Get Goodyear Tire & Rub ...
Cautious Optimism Powers Driven Brands Holdings Earnings Drive
Seeking Alpha· 2024-11-03 10:07
Driven Brands Holdings Inc. (NASDAQ: DRVN ) has been around since 1972 and is based in Charlotte, North Carolina. They're a big name in the car service world across North America. With more than 5,000 locations spread over 13 countries and handling about 70The mission of Grassroots Trading rests on the following principles: providing objective, unbiased, and balanced research, backed by solid data and completely void of emotional influences or preference for companies; focusing on small- to mid-cap companie ...