The following is a summary of the Driven Brands Holdings Inc. (DRVN) Q1 2024 Earnings Call Transcript:
Financial Performance:
Driven Brands reported Q1 2024 revenue growth of 1.7% with system-wide sales of $1.6 billion.
Total Q1 revenue was $572.2 million and adjusted EBITDA was $131 million, an increase of 1.7% and 6.1%, respectively.
In Q1, the maintenance segment showed growth, with revenue of $261.7 million and adjusted EBITDA of $91.4 million, representing growth of 15% and 26.6%.
The Car Wash segment recorded a 7.4% decline in same-store sales, with revenue of $144.7 million and adjusted EBITDA of $29.1 million.
The PC&G segment experienced an 11.9% and 13.1% drop in revenue and EBITDA respectively, largely due to refranchising initiatives.
Platform Services segment delivered revenue of $53.8 million and adjusted EBITDA of $19.9 million, for an increase of 3.4% and 16.8% respectively.
The net income for Q1 decreased significantly to $4.3 million as compared to $29.7 million in Q1 2023.
Business Progress:
Despite challenging conditions, Driven Brands opened 28 new stores in Q1 and plans to open around 150 new locations every year.
The company is positive about the progress of the online marketplace 'Driven Advantage', with approximately 75% of eligible locations purchasing from the platform.
Driven Brands plans a focus on improving the U.S. Car Wash and Glass business, targeting a robust second half of 2024.
Their Maintenance segment will expand, with the majority of new stores scheduled for the latter half of the year.
Despite a decline in the Car Wash segment, the company is looking to expand membership base by offering more value deals and testing new pricing strategies.
The company sees potential growth in the PC&G segment especially in the Glass business and intends to undertake initiatives to boost the top and bottom lines.
Driven Brands has confirmed its fiscal 2024 outlook with revenue expected between $2.35 billion and $2.45 billion.
More details: Driven Brands IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.