Driven Brands strong first quarter came "despite a challenging macroeconomic landscape," President and CEO Jonathan Fitzpatrick said.
"Our scale and sophistication allowed us to navigate continued supply-chain challenges and an accelerating inflationary environment. This scale and sophistication, coupled with our proven playbook for growth, allowed us to once again outperform expectations," Fitzpatrick said, crediting both employees and franchisees for the results.
Looking at the rest of fiscal 2022, Fitzpatrick said: "With our scale, the significant whitespace in this fragmented and needs-based industry, and our robust cash generation engine, our business model remains well-positioned to maximize long-term value for all of our stakeholders."
During the quarter Driven Brands' network of stores grew by a net of 114 points of sale, including 79 Auto Glass Now stores acquired in January.
Among the company's various businesses, the Take 5 Quick Lube is growing particularly fast, Fitzpatrick told financial analysts in the firm's first quarter conference call.
Driven Brands projects the Take 5 business could grow by up to 750 locations in the coming three to four years, primarily by adding franchised sites, Fitzpatrick said. The franchise channel has doubled annually since Driven Brands started franchising it, growing form 37 units in the first quarter of 2020 to 77 stores a year ago and 159 units at last count.
The company expects to 100 more franchised location this year, Fitzpatrick said, and has commitments from existing and prospective franchisees for 600-plus locations.
Franchisees in the quick lube sector typically are larger and well capitalized, Fitzpatrick said, many with existing multi-unit businesses in other sectors. There are 56 franchisees in operation, he added, and 30% of them have signed a second or third development agreement.
Driven Brands also expects to open 50 company-owned stores this year.
The company did not comment on its Meineke Car Care business, which is part of its maintenance business sector. That division reported 28.5% higher system-wide revenue of $357.1 million, Driven Brands said, generated by 1,531 stores, including 982 franchised locations.
The franchisor said it expects the maintenance store count to grow by approximately 145 stores this year, 65% of which will be franchised.
