Street Calls of the Week
Driven Brands Holdings Inc. (NASDAQ:DRVN), a $2.62 billion market cap company with annual revenues of $2.34 billion, has announced the appointment of Rebecca Fondell as the new Senior Vice President and Chief Accounting Officer, effective May 9, 2025. According to InvestingPro analysis, the company appears to be slightly undervalued based on its Fair Value assessment. Fondell, 41, brings a wealth of experience from her previous role as Global Corporate Controller at Papa John’s International (NASDAQ:PZZA), Inc., and her tenure as Vice President of Accounting, Controller for Reliance Worldwide Corporation.
Fondell’s career began at Ernst & Young, followed by positions at Georgia-Pacific LLC, Coca-Cola Enterprises, Inc., and Coca-Cola European Partners (NASDAQ:CCEP). She is a licensed Certified Public Accountant and holds a Bachelor of Science in Accountancy from LaGrange College and a Master of Accountancy from Auburn University.
Under the terms of her offer letter, Fondell will receive an annual base salary of $400,000. She will also be eligible for an annual performance-based cash bonus with a target of 50% of her annual base salary, as well as annual equity grants of restricted stock units and performance stock units with a target value of 75% of her annual base salary. This compensation package comes at a time when the company maintains a FAIR financial health score according to InvestingPro’s comprehensive analysis, which includes over 30 financial metrics and detailed company health assessments. These incentives are subject to approval by the Board or a committee thereof.
Additionally, Fondell has been offered a cash sign-on bonus of $150,000, which is repayable if she resigns or gives notice of resignation within 12 months of payment. Alongside her 2025 annual equity grant, she will receive a one-time sign-on grant of restricted stock units valued at $400,000, vesting over three years.
If Driven Brands terminates her employment without cause or if she resigns for good reason, Fondell will be entitled to 9 months’ salary continuation as severance. There are no reported arrangements or understandings between Fondell and any other persons in connection with her appointment, nor are there any family relationships between her and any director or executive officer of the company. Analysts maintain a consensus BUY rating on the stock, with price targets ranging from $16 to $25 per share. For deeper insights into DRVN’s valuation and growth prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence. Furthermore, there are no transactions involving Fondell that would require disclosure under SEC regulations.
The information provided is based on a press release statement.
In other recent news, Driven Brands Holdings Inc. has completed the sale of its U.S. car wash operations to Whistle Express Car Wash for approximately $385 million. This transaction, involving a $255 million cash payment and a $130 million interest-bearing seller note, marks a strategic shift for Driven Brands to focus on its Take 5 Oil Change brand and other franchise businesses. The proceeds from the sale are intended for debt reduction, with a goal of achieving a net leverage ratio of 3x or lower by the end of 2026. Additionally, Driven Brands has restructured its segment reporting to provide a clearer view of its operations, with Take 5 Oil Change highlighted as a significant growth contributor. Stifel analysts have maintained a Buy rating and a $22 price target for Driven Brands, reflecting confidence in the company’s strategy and future earnings potential. BMO Capital Markets has also raised its price target to $16, following the car wash business sale. Furthermore, Driven Brands announced an amendment to its revolving credit facility, extending its maturity to 2030, which provides the company with continued operational flexibility. The company also revealed a leadership transition, with Daniel Rivera set to become the new President and CEO, while Jonathan Fitzpatrick will transition to nonexecutive chairman.
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