Driven Brands Reports 13% Revenue Increase

By Tamara Parker • Thursday, February 22 15:57 • Permanent Link

Driven Brands Holdings Inc. (NASDAQ: DRVN) has reported a 13% increase in revenue for the fiscal year 2023, propelled by a 7% growth in same-store sales and a 4% expansion in net store count, as per the company's recent press release. The company's system-wide sales reached $6.3 billion, marking a 12% increase from the previous year.

Despite these gains, driven by robust performance in its maintenance segment, the company encountered significant non-cash charges resulting in a net loss of $745.0 million for the year. Adjusted net income was reported at $155.9 million, reflecting a 25% decrease from the prior year.

Jonathan Fitzpatrick, President and CEO of Driven Brands, expressed satisfaction with the company's performance, stating, "We are happy to announce that we delivered on our updated 2023 outlook for all financial metrics, while also pivoting our strategy and adapting to the dynamic market."

Looking forward to fiscal year 2024, Fitzpatrick outlined the company's objectives, emphasizing a focus on "accelerating growth, reducing debt, and making sure that Driven has the right assets to execute on both our short- and long-term goals."

In terms of financial outlook for 2024, the company anticipates revenue in the range of approximately $2.35 billion to $2.45 billion, alongside adjusted EBITDA of approximately $535 million to $565 million. Additionally, the company expects same-store sales growth of 3% to 5% and net new store growth of approximately 205 to 220.

Driven Brands, headquartered in Charlotte, NC, is the largest automotive services company in North America, operating under various well-known brands including Take 5 Oil Change, Meineke Car Care Centers, Maaco, and Carstar. The company's network spans approximately 5,000 locations across 13 countries, servicing over 70 million vehicles annually and generating around $2.3 billion in annual revenue from approximately $6.3 billion in system-wide sales.

The company's shares have experienced a 10.8% decline and are currently trading at a price of $12.99.

For more detailed information, the company's full 8-K submission is available here.

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