On Tuesday, Driven Brands Holdings Inc. ( DRVN ) reported fourth-quarter results and announced a transition of its Chief Executive Officer (CEO) and the sale of its U.S. car wash business.

Quarterly Results: The company reported adjusted EPS of 30 cents, surpassing the 18 cents estimate, while sales reached $564.1 million, falling short of the consensus of $572.2 million.

Revenue rose 2% year over year (Y/Y), with system-wide sales rising 5% Y/Y to $1.6 billion led by 3% Y/Y same store sales growth and 191 net new units.

The company concluded the quarter with $170.0 million in cash and cash equivalents, along with $478.7 million of available capacity on its variable funding securitization senior notes and revolving credit facility.

Jonathan Fitzpatrick, President and Chief Executive Officer, said, “Fiscal year 2024 was a year of growth and strong execution for Driven Brands ( DRVN ), led by our flagship brand Take 5 Oil Change.”

”We are proud of the results, as we delivered Adjusted EBITDA and same store sales in line with our full-year outlook, while also achieving our full-year leverage target. These results are directly attributable to more than 10,000 Driven Brands ( DRVN ) team members and franchisees who consistently deliver an exceptional customer experience,” 

Notably, in the first quarter of 2025, the company revised its operating segments and will now have the following reportable segments: Take 5, Franchise Brands, International Car Wash, and Corporate and Other.

FY25 Outlook: Driven Brands ( DRVN ) projects revenues of $2.05 billion—$2.15 billion vs. the consensus of $2.53 billion and adjusted EPS of $1.15-$1.25, compared to the $1.24 estimate.

CEO Change: The company appointed Chief Operating Officer Daniel Rivera as President and CEO, effective May 9, 2025.

Jonathan Fitzpatrick, who has served as President and CEO since 2012, informed the Board on February 24, 2025, of his decision to step down from the role on May 9, 2025.

Business Sale: Driven Brands ( DRVN ) inked a definitive deal to sell its U.S. car wash business to Express Wash Operations, LLC for $385 million.

The cash proceeds from the transaction is expected to be primarily used to reduce debt as Driven Brands ( DRVN ) aims to achieve a net leverage ratio of 3x or lower by the end of 2026.

The transaction is expected to close in the second quarter of 2025, pending customary closing conditions.

Price Action: DRVN shares closed higher by 2.09% to $15.64 at the last check on Tuesday.

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