DRIVEN BRANDS Reports Record-High Earnings for Q2 of Fiscal 2023
August 22, 2023
🌥️Earnings Overview
For the second quarter of fiscal 2023, DRIVEN BRANDS ($NASDAQ:DRVN) reported total revenue of USD 606.9 million, an increase of 19.3% compared to the same quarter in the previous year. Net income also rose by an impressive 166.2%, totaling USD 37.8 million, for the quarter ending June 30, 2023.
Price History
On Wednesday, DRIVEN BRANDS reported record-high earnings for Q2 of fiscal year 2023, with the stock opening at $18.7 and closing at $15.2, a plunge of 41.2% from its previous closing price of $25.8. This marked the highest quarterly earnings reported by the company in its history. The strong earnings were attributed to the company’s successful partnerships, ongoing initiatives to increase efficiency, and expansion into new markets. DRIVEN BRANDS has been making significant investments in technology and innovation, which have enabled it to stay ahead of the competition in terms of operational efficiency and customer experience.
In addition, the company has been actively working to build strong relationships with partners and customers in order to increase market share and revenue. Overall, DRIVEN BRANDS’ impressive performance in Q2 of fiscal year 2023 was a clear indication of the company’s resilience and commitment towards achieving long-term success. The record-high earnings are a testament to the hard work and dedication of the DRIVEN BRANDS team, who have worked tirelessly to bring the company to where it is today. 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
GoodWhale has conducted an analysis of the financials of DRIVEN BRANDS. Our ‘Star Chart’ has determined that DRIVEN BRANDS is strong in terms of growth, medium in profitability and weak in asset, dividend capabilities. We have classified DRIVEN BRANDS as a ‘gorilla’, which we define as a company which has achieved stable and high revenue or earning growth due to its strong competitive advantage. This classification, combined with the strong health score of 7/10 with regard to its cashflows and debt, indicates that DRIVEN BRANDS is well-positioned to safely ride out any crisis without the risk of bankruptcy. Therefore, this type of company is likely to attract investors who are looking for secure, long-term growth potential. 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 its second quarter earnings for the fiscal year 2023. Total revenue for the quarter was USD 606.9 million, a 19.3% increase year-over-year. Net income also increased by 166.2%, reaching USD 37.8 million.
Despite these impressive results, the stock price moved down on the same day, indicating that investors may be cautious on the company’s future prospects. Analysts suggest that investors keep an eye on DRIVEN BRANDS’ future performance metrics to determine whether the stock is a good investment opportunity.
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