Driven Brands Holdings Inc

Latest Results (08.10.2025):

Driven Brands Holdings Inc. reported its financial results for the fourth quarter of fiscal year 2024, demonstrating modest revenue growth and significant improvements in profitability. The company achieved a 2% increase in revenue compared to the prior year, while reducing its net loss and enhancing its adjusted EBITDA performance.

Revenue Growth

For the fourth quarter, Driven Brands reported revenue of $564 million, marking a 2% increase compared to the same period last year. This growth was supported by a 1% rise in same-store sales and a 4% increase in store count, contributing to overall system-wide sales of $1.6 billion, up 5% year-over-year.

Improved Profitability

The company reduced its net loss to $312 million, or $1.94 loss per diluted share, significantly improving from a net loss of $13 million, or $0.08 loss per diluted share, in the prior year. Adjusted Net Income rose to $48 million, up from $28 million, while Adjusted EBITDA increased by 5% to $131 million.

System-Wide Sales Growth

Driven Brands achieved system-wide sales of $1.6 billion in the fourth quarter, a 5% increase from the previous year. This growth was primarily driven by a 3% increase in same-store sales and the addition of 191 net new units, highlighting the company's effective expansion strategy.

Strategic Corporate Actions

The company announced a definitive agreement to sell its U.S. car wash business and a transition in its CEO position, appointing Daniel Rivera as the new President and Chief Executive Officer effective May 9, 2025. These strategic moves are aimed at optimizing the company’s portfolio and ensuring strong leadership for future growth.

Fiscal Year 2025 Outlook

Driven Brands provided its outlook for fiscal year 2025, excluding the U.S. car wash business, with expected revenue between $2.05 billion and $2.15 billion, Adjusted EBITDA between $520 million and $550 million, and Adjusted EPS between $1.15 and $1.25. The company also anticipates same-store sales growth of 1% to 3% and net store growth of approximately 175 to 200 locations.