DRIVEN BRANDS Reports FY2023 Q2 Earnings Results for June 30 2023
August 20, 2023
🌥️Earnings Overview
On August 2 2023, DRIVEN BRANDS ($NASDAQ:DRVN) released their Q2 earnings results for the period ending June 30 2023, showing total revenue of USD 606.9 million, an impressive 19.3% increase from the same quarter in the previous year. Net income for the quarter also increased significantly, achieving a growth of 166.2% year over year, amounting to USD 37.8 million.
Price History
On Wednesday, DRIVEN BRANDS stock opened at $18.7 and closed at $15.2, resulting in a plunge of 41.2% from the previous closing price of 25.8. This sharp decline has sent shockwaves across the market as DRIVEN BRANDS had previously reported strong growth in the previous quarter. Analysts have pointed to a number of factors that could have impacted DRIVEN BRANDS’ stock price, including new competitors entering the market and rising costs of production. It is yet to be seen how DRIVEN BRANDS will respond to this sudden drop in their stock price and how the company will move forward to ensure profitability in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Driven Brands. More…
| Total Revenues | Net Income | Net Margin |
| 2.23k | 132.37 | 6.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Driven Brands. More…
| Operations | Investing | Financing |
| 236.37 | -576.5 | 344.18 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Driven Brands. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.84k | 5.1k | 10.44 |
Key Ratios Snapshot
Some of the financial key ratios for Driven Brands are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 50.2% | 61.8% | 15.1% |
| FCF Margin | ROE | ROA |
| -16.7% | 12.2% | 3.1% |
Analysis
After conducting an analysis of DRIVEN BRANDS‘ fundamentals, GoodWhale found that the company has a high health score of 7/10 with regard to its cashflows and debt, indicating that it is capable of safely riding out any crisis without the risk of bankruptcy. According to the Star Chart, DRIVEN BRANDS is classified as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. As such, DRIVEN BRANDS is especially attractive to investors interested in growth. While it is strong in terms of growth, it is rated as medium in terms of profitability and weak in terms of assets and dividend. This could make it a good option for investors who wish to invest in a company with potential for growth but are willing to accept lower returns in the short-term. More…
Peers
The company operates through a network of over 2,000 franchised and company-owned locations across North America, Europe, and South America. Sinomach Automobile Co Ltd, D’Ieteren Group, Fuyao Glass Industry Group Co Ltd are among Driven Brands Holdings Inc’s main competitors.
– Sinomach Automobile Co Ltd ($SHSE:600335)
The company’s market cap is 11.57B as of 2022, a Return on Equity of 3.61%. The company is engaged in the manufacture and sale of automobiles and related products.
– D’Ieteren Group ($OTCPK:SIEVF)
The D’Ieteren Group is a holding company for a number of businesses, including the Belgian automobile dealer Belron and the glass manufacturer Glaverbel. The company has a market capitalization of 8.1 billion as of 2022 and a return on equity of 6.23%. The company’s businesses are diversified and include a number of well-known brands. The company has a long history and is headquartered in Brussels, Belgium.
– Fuyao Glass Industry Group Co Ltd ($SHSE:600660)
Fuyao Glass Industry Group Co., Ltd. is a holding company, which engages in the manufacture and sale of automotive glass products. It operates through the following segments: Float Glass, Automotive Glass, and New Energy. The Float Glass segment offers flat glass products. The Automotive Glass segment produces and sells automotive safety glass products. The New Energy segment manufactures and sells solar photovoltaic glass products. The company was founded by Chaozhou Fuyao in 1987 and is headquartered in Fuzhou, China.
Summary
DRIVEN BRANDS recently reported their FY2023 Q2 earnings results for the period ending June 30 2023, showing total revenue of USD 606.9 million and net income of USD 37.8 million, representing a 19.3% and 166.2% increase year over year respectively. Despite this encouraging performance, the company’s stock price dropped significantly on the same day. Investors should pay close attention to the company’s future performance and analyze any potential risks before making any decisions.
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