Driven Brands (DRVN) Q4 2024 earnings summary

Executive summary

• Fiscal year 2024 revenue reached $2.34 billion, up 2%, with Adjusted EBITDA of $553 million and Adjusted Net Income of $186 million ($1.14 per diluted share).

• Q4 2024 revenue was $564 million (up 2% year-over-year), Adjusted EBITDA $130.7 million, and diluted Adjusted EPS $0.30.

• Opened 191 net new stores in 2024, including 174 Take 5 Oil Change locations, achieving 1.3% same-store sales growth.

• Announced sale of U.S. car wash business, expected to close in Q2 2025, and CEO succession plan with Danny Rivera to become CEO after Q1 2025.

• System-wide sales for FY24 were $6.5 billion, up 4%, with 16 consecutive quarters of same-store sales growth.

Financial highlights

• Q4 system-wide sales grew 5.5% to $1.6 billion; same-store sales up 2.9% (16th consecutive positive quarter).

• Q4 Adjusted EBITDA increased 4.6% to $130.7 million; margin improved by 60 bps to 23.2%.

• Q4 net loss of $312 million due to $317.9 million in asset impairments (mainly U.S. car wash segment).

• Full-year 2024 net loss was $292 million ($1.82 per diluted share), a significant improvement from prior year.

• Paid down $248.6 million of debt in 2024; ended Q4 with net leverage of 4.4x.

Outlook and guidance

• 2025 revenue guidance: $2.05–$2.15 billion; Adjusted EBITDA: $520–$550 million; Adjusted diluted EPS: $1.15–$1.25.

• Same-store sales growth expected at 1%–3%; net store growth of 175–200 units.

• Net capital expenditures projected at 6.5%–7.5% of revenue; interest expense $125–$130 million.

• Targeting net leverage of 3x by end of 2026; free cash flow to be used for further debt reduction.