Driven Brands reports strong third quarter results; Raises full year guidance reflecting outperformance
For the third quarter of 2022, revenue increased 39% versus the prior year to $516.6 million. System-wide sales increased 22% versus the prior year to $1.5 billion, with 9% net store growth and an increase in consolidated same-store sales of 11.9%.
- Revenue increased 39% powered by 12% same-store sales and net store growth
- Operating profit increased by 50% enabled by significant operating leverage
- Guidance increase reflects powerful customer value proposition and resilient needs-based industry
Driven Brands Holdings Inc. (NASDAQ: DRVN) (“Driven Brands” or the “Company”) today reported financial results for the third quarter ended September 24, 2022.
For the third quarter, revenue increased 39% versus the prior year to $516.6 million. System-wide sales increased 22% versus the prior year to $1.5 billion, with 9% net store growth and an increase in consolidated same-store sales of 11.9%.
Net Income increased 16% versus the prior year to $38.4 million or $0.23 per diluted share in the third quarter.
Adjusted Net Income1 increased 26% to $55.0 million or $0.32 per diluted share2.
“We continue to have solid momentum entering the fourth quarter, building on our strong performance year-to-date. We are growing, taking share and generating cash, leveraging our proven playbook for growth with a robust pipeline of franchise and greenfield openings,” said Jonathan Fitzpatrick, President and CEO.
“The benefits of our scale and breadth of our offering deepen our competitive moat and differentiate our business, driving unit expansion, same store sales growth, and cost savings. Our continued execution combined with the strength of our business model gives us confidence that we are on track to meet or exceed our long-term plan.”
Comparisons are third quarter of 2022 ended September 24, 2022 versus third quarter of 2021 ended September 25, 2021 unless otherwise noted
- Revenue increased 39% to $516.6 million, driven by same-store sales and net store growth.
- Consolidated same-store sales increased 11.9%.
- The Company added 101 net new stores during the quarter.
- Net Income increased 16% to $38.4 million.
- Adjusted Net Income1 increased 26% to $55.0 million.
- Adjusted EBITDA3 increased 32% to $129.4 million.