CHARLOTTE, N.C. — Driven Brands Holdings Inc., the franchisor of several automotive service chains — including Meineke Car Care Centers and Take 5 Oil Change — boosted systemwide sales by 22% to $1.4 billion, with 7% net-store growth and an increase in consolidated same-store sales of 13.2% for the quarter ended June 25.
Driven Brands provides a range of consumer and commercial automotive services, including paint, collision, glass, vehicle repair, oil change, maintenance and car wash. The company oversees more than 4,500 locations in 15 countries.
Second-quarter systemwide sales of its 1,559 maintenance-focused stores, which include co-owned and franchised locations, totaled $399.2 million, with a same-store sales increase of 15%, and EBITDA of $64.1 million for the second quarter, compared with the year-ago period.
Driven Brand's 1,001 maintenance-focused franchised stores generated sales of $230.5 million for the quarter, an 18.2% increase, while the 558 company-owned locations reported a 33.7% jump in sales to $168.6 million.
For the first half, the franchised stores boosted sales 20% to $430.8 million while the company-owned stores increased sales 35.5% to $325.5 million. The company noted that 62 Drive N Style stores included in the results in 2021 are not included in the 2022 numbers because they are held for sale.
Company revenues increased 35.7% to $508.6 million for the second quarter but the company reported an operating loss of $35.7 million and a net loss of $57 million.
The revenue increase was driven by a same-store sales increase of 13.2% for the quarter and net-store growth of 80 locations, the company said. The loss was attributed to a $125.5 million one-time non-cash impairment charge related to intangible assets due to re-branding its U.S. car wash business.
For the first half, the company's operating income fell 66.4% to $38 million despite a 38.7% increase in total revenue to $976.9 million, compared with the year-ago period. The company reported a net loss of $22.6 million for the period.
"We delivered strong results in the second quarter. These results are a testament to the resilience of our needs-based service offering and our ability to drive sustainable growth and cash flow leveraging a proven playbook," President and CEO Jonathan Fitzpatrick said.
"We have significant momentum across our business capitalizing on the benefits of our scale, the quality of our offerings, the strength of our brands, our best-in-category data and marketing capabilities, and our ability to generate robust cash flow. We are delivering against our Dream Big plan of at least $850 million of adjusted EBITDA by the end of 2026, demonstrating our ability to drive significant shareholder value over time."
The company said it has raised its guidance for the fiscal year to account for its strong operating performance and M&A activity in the first half of 2022, as well as an updated outlook for the remainder of the year. This includes revenue of about $2 billion for the year, with adjusted EBITDA of about $495 million.
The company said it also expects low-double-digit same-store sales growth and net store growth of about 340 — including about 140 maintenance stores, of which 70% will be franchised and 30% will be company-operated.
The company did not provide sales or earnings for the individual businesses/brands.
