Driven Brands bullish after positive '21 results

CHARLOTTE, N.C. — Driven Brands Holdings Inc., franchisor of several vehicle maintentance businesses, including Meineke Car Care, reported fiscal 2021 operating income of $361.7 million on 62.4% higher revenue of $1.47 billion,

The upbeat fiscal 2021 results prompted Driven Brands to project 28% earnings growth in 2020 to approximately $465 million on sales of $1.9 billion. Net income was $9.54 million, versus a net loss of $4.32 million a year ago.

Driven Brands President and CEO Jonathan Fitzpatrick called the results a "testament to the strength and diversity of the Driven Brands portfolio and the hard work the team has demonstrated throughout 2021" and suggested that the firm is "well positioned to maximize long-term value for all of our stakeholders."

Collectively, Driven Brands' franchise networks collectively generated systemwide sales of $4.5 billion, an increase of 35% versus the prior year, with 6% net store growth and an increase in consolidated same-store sales of 17.1%.

For the fourth quarter, revenue grew 36% to $391.9 million, based on 26% higher systemwide sales of $1.2 billion. The firm reported a 23-cent per-share net loss in the quarter, driven by a $56 million one-time transaction expense associated with the late 2021 acquisition of Auto Glass Now.

Driven Brands franchised store network covers 4,400 points of sale in 15 countries operating under five brands: Take 5 Oil Change, Meineke Car Care Centers, Maaco, 1-800-Radiator & A/C and CARSTAR.

Of the firm's $1.47 billion in fiscal 2021 revenue, $843.6 million came from company-operated stores and $144.4 million in franchise royalties, etc.

For the current fiscal year, Driven Brands is projecting:

• Mid-single-digit same-store sales growth.
• Net store growth of approximately 225, including 145 in the maintenance sector, split 65/35 franchised/company-operated, and 45 in the car wash sector.

Driven Brands didn't discuss Meineke Car Care specifically in the earnings report or during a Feb. 16 conference call with the financial community.

Separately, the business lists 11 new locations set to open soon, including three each in California and Florida and single locations in California, New Jersey, North Carolina, Oklahoma, Texas and Washington. In total, there are over 800 Meineke locations in operation.