Automotive services conglomerate Driven Brands (NASDAQ: DRVN) reached four years of year-over-year quarterly sales growth, as it also announced an agreement to sell its U.S. car wash business and a new CEO on Feb. 25.
Despite the company posting full-year 2024 revenue of $2.3 billion -- a 2% increase from 2023 -- Driven Brands also saw a 2024 net loss of $292 million, compared to a net loss of $745 million in 2023. The company announced full-year 2024 and fourth-quarter 2024 financial results in a press release Feb. 25.
Driven Brands notched revenue of $564 million in 2024’s fourth quarter, a 2% increase from 2023’s final quarter.
Driven Brands also announced a definitive agreement to sell its Take 5 Car Wash business to Express Wash Operations, LLC, for $385 million. The deal is expected to take effect in the second quarter of 2025.
“This transaction will enable Driven Brands to reduce debt and enhance our focus on our growing Take 5 Oil Change brand and our stable, cash-generating franchise brands,” Driven Brands CEO Jonathan Fitzpatrick said in a statement. “This decision follows a deliberate and thoughtful strategic review of value-maximizing options for the U.S. car wash business.”
As of Dec. 28, the company had $2.7 billion in long-term debt, $250.1 million less than 2023.
Driven Brands has about 5,200 locations worldwide, and is the largest automotive services company in North America. Its portfolio of franchised business lines includes Meineke Car Care Centers, Maaco, Take 5 Oil Change, Auto Glass Now, 1-800-Radiator & A/C, CARSTAR, Abra, Fix Auto and Take 5 Car Wash.
In addition to earnings and its spinoff of its car wash subsidiary, Driven Brands also announced Daniel Rivera as the company’s new CEO, effective May 9. Fitzpatrick will stay on the board and will step into the role of non-executive chair upon the start of Rivera’s term. Fitzpatrick will work as a special advisor for Rivera for the rest of the year to ensure a smooth transition, according to the press release.
Partly as a result of selling its car wash business, Driven Brands expects its year-over-year revenue for 2025 to decrease by between $190 million and $290 million, and its adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) to drop by between $2.7 million and $32.7 million. However, the company anticipates its adjusted earnings per share to rise from $1.14 in 2024 to anywhere between $1.15 and $1.25 for 2025.
The Charlotte, NC-based company is looking to add as many as 175 to 200 net stores to its portfolio this year, it stated.
Brian Bradley