Driven Brands Q1 EPS of $0.30 Beats, Revenue $484.4M Slightly Misses
DRVN•Driven Brands delivered adjusted EPS of $0.30 in Q1, beating estimates by $0.02 while revenue fell 0.7% to $484.4 million year-over-year. Management reaffirmed full-year guidance of $1.15–1.25 EPS and $1.95–2.05 billion revenue, driven by 8% sales growth and 2% same-store increases.
1. Q1 Financial Results
Driven Brands reported adjusted EPS of $0.30 in Q1, surpassing forecasts by $0.02, while revenue reached $484.4 million, up 8% from $447.6 million a year earlier but shy of expectations. Same-store sales grew 2% across the network, driven by ongoing demand for maintenance and repair services.
2. Take 5 Segment Performance
The Take 5 quick oil change segment generated $323.2 million in revenue, posting 4.5% same-store sales growth and marking its 23rd consecutive quarter of growth, as system-wide sales increased 6% to $1.6 billion and total stores rose 5% to 4,281 locations.
3. Guidance Reaffirmation
Management reaffirmed full-year guidance of $1.15 to $1.25 adjusted EPS and $1.95 to $2.05 billion revenue, aligning with analyst midpoints, and expects same-store sales growth of 0% to 2% along with 160 to 190 net new location openings.
4. Balance Sheet and Costs
Adjusted EBITDA climbed 2% year-over-year to $104.1 million despite about $9.1 million in nonrecurring costs from prior financial restatements, while net leverage improved to 3.2 times adjusted EBITDA on an enhanced balance sheet.
