Driven Brands (DRVN) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue reached $2.34 billion, up 2% YoY, with Adjusted EBITDA of $553 million, up 7% YoY; Q4 2024 revenue was $564 million and Adjusted EBITDA $130.7 million.

• Achieved 16 consecutive quarters of positive same-store sales growth, led by Take 5 Oil Change with 9.2% Q4 and 6.8% FY 2024 same-store sales growth.

• Announced sale of U.S. car wash business, expected to close in Q2 2025, with proceeds used for debt reduction.

• CEO succession plan: Jonathan Fitzpatrick to step down after Q1 2025, Danny Rivera to become CEO in May 2025.

Financial highlights

• Q4 system-wide sales grew 5.5% YoY to $1.6 billion; FY system sales up 4% to $6.5 billion.

• Q4 Adjusted EBITDA rose 5% YoY to $131 million; FY Adjusted EBITDA up 7% to $553 million.

• Q4 net loss of $312 million, driven by $317.9 million in asset impairments; FY net loss of $292 million, a significant improvement from $745 million loss prior year.

• Q4 Adjusted net income $48.4 million ($0.30 per diluted share); FY Adjusted net income $186.3 million ($1.14 per diluted share).

Outlook and guidance

• FY 2025 guidance (excluding U.S. car wash): revenue $2.05–$2.15 billion, Adjusted EBITDA $520–$550 million, Adjusted diluted EPS $1.15–$1.25, same-store sales growth 1–3%.

• Net store growth expected between 175–200 units; CapEx 6.5–7.5% of revenue; interest expense $125–$130 million.

• Targeting net leverage below 3x by year-end 2026.