DRIVEN BRANDS Reports Q2 FY2023 Earnings Results on June 30, 2023
August 11, 2023
🌥️Earnings Overview
DRIVEN BRANDS ($NASDAQ:DRVN) reported total revenue of USD 606.9 million for the second quarter of FY2023, ending on August 2 2023. This was an increase of 19.3% from the same period last year. Net income for the quarter also grew 166.2% year over year to USD 37.8 million.
Market Price
On Wednesday, June 30, 2023 DRIVEN BRANDS reported their Q2 FY2023 earnings results. The stock opened at $18.7 and closed at $15.2, showing a plunge of 41.2% from the previous closing price of 25.8. The sharp drop in share price was unexpected and investors are concerned about the company’s outlook. The company’s revenue for the period was lower than expected, which caused investors to become nervous about the future of DRIVEN BRANDS. DRIVEN BRANDS also mentioned that expenses were higher than anticipated due to increased costs associated with their new initiatives.
Analysts have suggested that DRIVEN BRANDS may need to re-evaluate their business strategy in order to turn around their financial performance in the near future. Investors have also called on the company to provide more clarity on their current financial situation and future plans. It remains to be seen how DRIVEN BRANDS will respond to these pressures and if they can bounce back from this sudden drop in stock price. 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
At GoodWhale, we conducted an analysis of DRIVEN BRANDS‘ fundamentals. Based on the Star Chart, DRIVEN BRANDS is strong in growth and medium in profitability, however it is weak in asset and dividend. After evaluating the company’s fundamentals, we classified it as a ‘gorilla’, which is a type of company that achieved stable and high revenue or earning growth due to its strong competitive advantage. Given its strong growth performance, DRIVEN BRANDS may be of interest to value investors who are seeking to invest in companies that have potential for long-term returns. In addition, DRIVEN BRANDS has a high health score of 7/10 considering its cashflows and debt, indicating to us that it is capable of sustaining future operations in times of crisis. 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
The investing analysis in DRIVEN BRANDS looks favorable. The company reported total revenue of USD 606.9 million and a net income of USD 37.8 million in Q2 of FY2023 – a rise of 19.3% and 166.2% respectively year-over-year. Despite this, the stock price moved down the same day.
This may be a sign that the stock market is expecting even better financial performance in future quarters, or that investors were expecting more from the current quarter’s results. Overall, the future looks promising for DRIVEN BRANDS investors, with solid growth and strong prospects for the future.
Related Posts
Recent Posts
