Q1 2024 Driven Brands Holdings Inc Earnings Call Transcript
Key Points
- Driven Brands Holdings Inc (DRVN) reported a 1.7% revenue growth compared to the previous year, supported by the addition of 144 net new stores and a 0.7% increase in same-store sales.
- The company's Take 5 Oil Change segment marked its 15th consecutive quarter of positive same-store sales, with significant year-over-year margin expansion of approximately 300 basis points.
- Driven Brands Holdings Inc (DRVN) successfully launched the Driven Advantage purchasing platform, with about 75% of eligible locations beginning to use the platform since its launch in Q1 2023.
- The franchise businesses, including Meineke, Maaco, CARSTAR, and 1-800, continued to deliver strong results, contributing significantly to cash flow and maintaining high margins.
- Despite challenging weather conditions, Driven Brands Holdings Inc (DRVN) managed to deliver solid financial performance and remains confident in achieving its 2024 guidance.
- The first quarter revenue was negatively impacted by extreme weather conditions, particularly in January, which affected business operations.
- Ongoing inflationary pressures are expected to continue affecting consumer spending throughout 2024, with lower income households most likely to be impacted.
- The U.S. Car Wash segment experienced a decline in margins due to lower revenue, influenced by consumer softness, adverse weather, and competitive intrusion.
- The company's U.S. Glass business, Auto Glass Now, is facing challenges in scaling and momentum, although it is a focus for medium- and long-term growth.
- Driven Brands Holdings Inc (DRVN) is undergoing a transition in its CFO role, which could bring uncertainties despite the company's reassurance of a seamless transition.
Good morning. My name is Karina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Driven Brands' Q1 2024 Earnings Call. (Operator Instructions).
I will now turn the call over to Joel Arnao, SVP of Finance. Joel, you may begin your conference.
Good morning, and welcome to Driven Brands' First Quarter 2024 Earnings Conference Call. The earnings release and the leverage ratio reconciliation are available for download on our website at investors.drivenbrands.com. On the call today with me are Jonathan Fitzpatrick, President and Chief Executive Officer; Daniel Rivera, Executive Vice President and Chief Operating Officer; and Gary Ferrera, Executive Vice President and Chief Financial Officer. In a moment, Jonathan, Danny and Gary will walk you through our financial and operating performance for the quarter.
Before we begin our remarks, I'd like to remind you that management will refer to certain non-GAAP financial measures. You can find the reconciliations to most directly comparable GAAP
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