Driven Brands boosts Q2 sales, profits

CHARLOTTE, N.C. — Driven Brands Holdings Inc., the parent company of Take 5 Oil Change, Meineke Car Care Centers, Maaco, 1-800-Radiator & A/C, and CARSTAR, increased its system-wide sales 65% to a record $1.2 billion in the second quarter, ended June 26, compared with the year-ago period.

The company generated a net store growth of 34% with a same-store sales growth of 38.7%. On a two-year basis, same-store sales increased 19.1%.

"The power of Driven Brands is evident in our continued strong operating results," President and CEO Jonathan Fitzpatrick said.

"While this quarter laps the depths of COVID-19 in the prior year, our strong two-year trend indicates continued momentum in the fundamentals of our business.

"Initiatives we implemented last year, coupled with strong execution from employees and franchisees drove compounding same-store sales and store growth. We continued to capitalize on opportunities as consumers drove more in the second quarter."

The company's net income surged 1,051% to $35.2 million, compared with the year-ago period, while its EBITDA increased 152% to $100.8 million.

The company's revenue increased 123%, driven primarily by the acquisition of International Car Wash Group in the third quarter of 2020 as well as organic growth across all segments from positive same-store sales growth and net store growth.

The company added 70 net new stores during the second quarter.

The company's vehicle maintenance segment, which included 1,485 stores, generated revenue of $145 million and segment adjusted EBITDA of $44.6 million for the quarter.

For the second quarter, Driven Brands tripled its total operating income to $63.6 million on a 123% jump in revenues to $374.8 million.

For the first six months, the company more than tripled its operating income to $113.4 million on revenues of $704.2 million.

Due to the strong operating performance, Driven Brands raised its guidance for fiscal year 2021 expecting full-year revenue of $1.4 billion and an adjusted EBITDA of approximately $345 million.

The company said it expects to end the year with a net store growth of 80 to 90 stores among its automotive maintenance operations, driven by roughly equal parts franchise and company-operated store growth.