Financial Data and Key Metrics Changes - For Q3 2024, Driven Brands reported revenue of $592 million, a 2% increase year-over-year, with adjusted EBITDA of $138.8 million and diluted adjusted EPS of $0.26 per share [11][54] - The company achieved its 15th consecutive quarter of positive same-store sales growth, with a growth rate of 1.1% [11][50] - Operating income for Q3 was $40 million, with adjusted EBITDA margin increasing by approximately 250 basis points to 23.5% [53] Business Line Data and Key Metrics Changes - The Take 5 Oil Change segment saw revenue growth of 15% and adjusted EBITDA growth of 14% compared to Q3 2023, marking its 17th consecutive quarter of positive same-store sales growth [17][34] - The PC&G segment reported revenue of $109 million and adjusted EBITDA of $34.7 million, with same-store sales up 1.3% [40] - The Car Wash segment generated $142.2 million in revenue and $25.6 million in adjusted EBITDA, with same-store sales increasing by 1.8% despite weather challenges [43] Market Data and Key Metrics Changes - The company faced significant challenges from four hurricanes in Q3, impacting over 500 locations and resulting in an estimated system-wide sales loss of up to $10 million [32][44] - The international Car Wash business performed well, helping to offset the negative impacts faced by the U.S. Car Wash business [43] Company Strategy and Development Direction - The company is focused on three key priorities: delivering the 2024 outlook, utilizing excess free cash flow to reduce debt, and active portfolio management [9][28] - Driven Brands aims to achieve a net leverage ratio of less than three times by the end of 2026, having already reached a leverage ratio of 4.5 times in Q3 [16][56] - The company is actively evaluating opportunities for portfolio management, including the divestiture of non-core businesses [15][102] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing inflationary pressures affecting consumer spending, particularly among lower-income households, but expressed confidence in the strength of their commercial business [13][28] - The company reiterated its guidance for the remainder of 2024, expecting revenue between $2.33 billion and $2.43 billion, and adjusted EBITDA between $529 million and $559 million [60][61] Other Important Information - Driven Brands has sold approximately $160 million in assets year-to-date, exceeding its previous full-year estimate of $150 million [55] - The company has a robust pipeline of approximately 1,000 sites for future growth, with a target of at least 2,000 locations for Take 5 Oil Change [19][20] Q&A Session Summary Question: Can you speak to ticket versus traffic in car wash specifically and within ticket, how is pricing trending there? - Management indicated satisfaction with both ticket and traffic growth, with Take 5 Oil Change delivering strong performance [63] Question: Can you talk about the retail flow post-hurricane within the U.S. car wash business? - Management emphasized a focus on membership growth, noting that they have surpassed one million members in the U.S. [68][69] Question: Can you discuss the maintenance segment margins and trends around mature store comps in Take 5 Oil? - Management acknowledged some margin degradation due to hurricanes but expressed satisfaction with both mature and new store performance [70][72] Question: How do you think about ticket and an opportunity to add more services in Take 5? - Management sees significant potential for ticket growth and plans to introduce more services in the future [76][78] Question: Can you provide context on the glass business and its growth potential? - Management clarified that they are focused on building the glass business and have secured new partnerships that will contribute to growth [80][88] Question: What is the current competitive landscape and trends in the commercial side? - Management noted ongoing consolidation in the industry and emphasized the importance of long-term commercial partnerships [100][101] Question: How much of the strategy to reach three times leverage by 2026 is dependent on debt paydown versus EBITDA growth? - Management indicated that both debt paydown and EBITDA growth will contribute to achieving the leverage target [102]

For the quarter ended September 2024, Driven Brands Holdings Inc. (DRVN) reported revenue of $591.68 million, up 1.8% over the same period last year. EPS came in at $0.26, compared to $0.20 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $603.84 million, representing a surprise of -2.01%. The company delivered an EPS surprise of +13.04%, with the consensus EPS estimate being $0.23.While investors scrutinize revenue and earnings changes year-over-year and how they com ...

Driven Brands Holdings Inc. (DRVN) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.23 per share. This compares to earnings of $0.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.04%. A quarter ago, it was expected that this company would post earnings of $0.27 per share when it actually produced earnings of $0.35, delivering a surprise of 29.63%.Over the last four quarters, ...

Driven Brands Holdings Inc. Reports Third Quarter 2024 Results th --15 consecutive quarter of same store sales growth-- --Take 5 Oil Change delivers 15% revenue growth and 5% same store sales growth-- --Net Loss of $15 million and Adjusted EBITDA of $139 million-- --Re-affirms FY24 Revenue, Adj. EBITDA and Adj. EPS outlook excluding disposition-- Charlotte, N.C. (October 31, 2024) - Driven Brands Holdings Inc. (NASDAQ: DRVN) ("Driven Brands" or the "Company") today reported financial results for the third q ...

Interest rates shouldn't be the main focus, but they can help these businesses that are already doing well. On Sept. 18, the Federal Reserve voted to lower interest rates for the first time in four years. There are certain stocks that can benefit from this move. But first, I should temper expectations. For starters, investors shouldn't get too hung up on interest rates because they aren't predictable. Even voting members of the Federal Reserve are often wrong when it comes to forecasting interest rates a ye ...

Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either Driven Brands Holdings Inc. (DRVN) or Gentex (GNTX) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with ...

Driven Brands Holdings Inc. (DRVN) closed the last trading session at $12.94, gaining 2.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $16.77 indicates a 29.6% upside potential. The mean estimate comprises 11 short-term price targets with a standard deviation of $2.48. While the lowest estimate of $14 indicates an 8.2% increase from the current price level, the most optimistic ...

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today: Meritage Homes (MTH) : This company which is one of the leading designers and builders of single-family homes, has seen the Zacks Consensus Estimate for its current year earningsincreasing 5.1% over the last 60 days. UL Solutions Inc. (ULS) : This company which provides safety science services, has seen the Zacks Consensus Estimate for its current year earnings increasing 4.2% over the last 60 days. Krystal Biotech (KRYS) : This gene t ...

Driven Brands Holdings Inc. (NASDAQ:DRVN) Q2 2024 Earnings Conference Call August 1, 2024 8:30 AM ET Company Participants Jonathan Fitzpatrick - President and CEO Danny Rivera - EVP and COO Joel Arnao - SVP & Interim CFO Chris Thompson - Senior Director, Treasury, and IR Conference Call Participants Simeon Gutman - Morgan Stanley Justin Kleber - Robert W. Baird Robby Ohmes - Bank of America Seth Sigman - Barclays Madison Callinan - Canaccord Genuity Christian Carlino - J.P. Morgan Peter Keith - Piper Sandle ...

Andy Sotiriou Summary Following my coverage of Driven Brands Holdings (NASDAQ:DRVN) in Mar'24, which I recommended a buy rating due to my expectation that the shares have been oversold and DRVN can beat its FY26 EBITDA margin guidance, this post is to provide an update on my thoughts on the business and stock. I am still buy-rated on DRVN despite the poor headline revenue performance. Bad weather was a major headwind for DRVN and had masked the positive results from DRVN's pricing strategy. As DRVN laps thi ...