Driven Brands shares fall over 4% as Q4 revenue misses estimates, guidance disappoints

Published 25/02/2025, 14:00
Driven Brands shares fall over 4% as Q4 revenue misses estimates, guidance disappoints

CHARLOTTE, N.C. -On Tuesday, Driven Brands Holdings Inc. (NASDAQ:DRVN) reported fourth quarter earnings that beat expectations, but revenue fell short of analyst estimates.

The company also provided full-year 2025 guidance below consensus forecasts, sending shares down -4.24% in trading.

The automotive services company posted adjusted earnings per share of $0.30 for Q4, surpassing the analyst estimate of $0.18. However, revenue came in at $564.1 million, missing the $572.17 million consensus projection.

For the full year 2024, Driven Brands delivered revenue of $2.3 billion, up 2% YoY. System-wide sales increased 4% to $6.5 billion, driven by 1% same-store sales growth and a 4% increase in store count.

Looking ahead, the company expects fiscal 2025 adjusted earnings per share between $1.15 and $1.25, below the $1.24 analyst consensus. Revenue guidance of $2.05-2.15 billion also fell short of the $2.53 billion estimate.

"Fiscal year 2024 was a year of growth and strong execution for Driven Brands, led by our flagship brand Take 5 Oil Change," said Jonathan Fitzpatrick, President and CEO. "Looking ahead to 2025 our focus is clear: delivering on our outlook, reducing debt and active portfolio management."

The company also announced it has entered into a definitive agreement to sell its U.S. car wash business to Express Wash Operations, LLC.

Driven Brands expects same-store sales growth of 1-3% and net store growth of approximately 175-200 locations in fiscal 2025. The guidance excludes the impact of the U.S. car wash business sale and any potential M&A activity.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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