Wed, Feb 26, 9:37 PM (59 days ago)
Driven Brands Holdings Inc. (DRVN) reported a net revenue of approximately $2.3 billion for the fiscal year ended December 28, 2024, marking a 2% increase year-over-year, with system-wide sales of $6.5 billion, up 4%. The company experienced a net loss of $292 million, significantly improved from a $745 million loss in the prior year, primarily due to enhanced operating margins in key segments and a reduction in goodwill impairment charges. Adjusted EBITDA rose 7% to $553 million, driven by new store growth and improved margins across Maintenance, Platform Services, and Paint, Collision & Glass segments. The company operates over 5,200 locations across North America, focusing on diversified automotive services. Notably, Driven Brands recorded a $325 million impairment charge related to its U.S. Car Wash segment. Future outlook includes a strategic agreement to sell its U.S. Car Wash business for $385 million, which is expected to enhance liquidity. Key risks involve inflationary pressures, increased competition, and reliance on franchisee performance. The company maintains a substantial debt of approximately $2.7 billion, with ongoing liquidity supported by cash reserves and credit facilities. Driven Brands is positioned to leverage its scale and brand recognition for continued growth amid a competitive landscape.