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CHARLOTTE, N.C. - Driven Brands Holdings Inc. (NASDAQ: DRVN), a leading automotive services company in North America with a market capitalization of $2.66 billion, has implemented a new segment reporting structure effective in the first quarter of 2025. According to InvestingPro analysis, the company appears slightly undervalued at its current price of $16.26, with analysts setting price targets ranging from $16 to $23. The reorganization aims to provide a clearer picture of the company’s operations and the main factors contributing to its value creation.
Executive Vice President and Chief Financial Officer Mike Diamond stated that the realignment allows for a more transparent view of the company’s performance. Notably, Take 5 Oil Change has become a separate reportable segment, highlighting its role as a significant growth contributor. The company’s EBITDA of $429.12 million in the last twelve months demonstrates its operational scale. Furthermore, the company’s stable franchise businesses have been consolidated into a single segment. Diamond emphasized that the new structure accentuates the company’s dual strategy of growth through Take 5 Oil Change and generating free cash flow from its franchise brands. For detailed insights into Driven Brands’ financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s exclusive research reports.
Driven Brands has also updated its fiscal year 2024 quarterly segment financial information to reflect these changes. The company assures that the modifications to the reporting structure do not affect the consolidated historical financial results in accordance with U.S. GAAP. The updated financial details are available to the public on the Investor Relations section of Driven Brands’ website.
The company, headquartered in Charlotte, NC, is recognized as the largest automotive services provider in North America. Driven Brands encompasses a variety of consumer and commercial automotive services, including paint, collision, glass, vehicle repair, oil change, maintenance, and car wash. Its family of brands includes Take 5 Oil Change®, Take 5 Car Wash®, Meineke Car Care Centers®, Maaco®, 1-800-Radiator & A/C®, Auto Glass Now®, and CARSTAR®. Operating around 5,200 locations across 14 countries, Driven Brands services about 70 million vehicles annually and generates approximately $2.3 billion in annual revenue from an estimated $6.5 billion in system-wide sales. The company maintains a healthy current ratio of 1.52 and has achieved a notable revenue CAGR of 31% over the past five years. InvestingPro subscribers can access over 30 additional financial metrics and expert insights about Driven Brands’ growth trajectory and market position.
This restructured reporting format is based on a press release statement and is intended to offer stakeholders a more insightful understanding of the company’s financial health and strategic direction.
In other recent news, Driven Brands Holdings Inc. has announced a significant financial maneuver by extending its $300 million credit facility to 2030, providing the company with increased operational flexibility. The company reported $155 million in outstanding borrowings under this amended agreement, which includes specific covenants and restrictions. In a strategic move, Driven Brands has agreed to sell its U.S. car wash operations to Whistle Express Car Wash for $385 million, a transaction expected to close in the second quarter of 2025. This divestiture aligns with the company’s focus on its core operations, such as the Take 5 Oil Change segment, and aims to enhance shareholder value.
BMO Capital Markets responded to this development by raising its price target for Driven Brands to $16, maintaining a Market Perform rating. Additionally, a leadership transition is underway, with Daniel Rivera set to become President and CEO on May 9, 2025, succeeding Jonathan Fitzpatrick, who will transition to the role of nonexecutive chairman. Meanwhile, the company’s Chief Accounting Officer, Michael Beland, has announced his resignation effective January 3, 2025, with CFO Michael Diamond stepping in as interim principal accounting officer. These recent developments indicate Driven Brands’ commitment to strategic financial management and operational refinement.
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