Driven Brands Holdings Inc. Files 2023 Annual Report on Form 10-K

Ticker: DRVN · Form: 10-K · Filed: Feb 28, 2024 · CIK: 1804745

Sentiment: neutral

Topics: Driven Brands, DRVN, 10-K, Annual Report, Automotive Services

TL;DR

<b>Driven Brands Holdings Inc. has submitted its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 30, 2023.</b>

AI Summary

Driven Brands Holdings Inc. (DRVN) filed a Annual Report (10-K) with the SEC on February 28, 2024. Driven Brands Holdings Inc. filed its 2023 Form 10-K on February 28, 2024, for the fiscal year ending December 30, 2023. The company operates in the Services-Automotive Repair, Services & Parking industry (SIC 7500). The filing covers the fiscal year from January 1, 2023, to December 30, 2023. Driven Brands Holdings Inc. was formerly known as RC Driven Holdings LLC until February 26, 2020. The company's principal business address is 440 S. Church Street, Suite 700, Charlotte, NC 28202.

Why It Matters

For investors and stakeholders tracking Driven Brands Holdings Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Driven Brands' financial health, operational segments, and strategic direction for the past fiscal year, crucial for investors and stakeholders to assess performance and future prospects. As a significant player in the automotive services sector, the detailed disclosures in this report offer insights into industry trends, competitive landscape, and potential risks affecting the company and its franchisees.

Risk Assessment

Risk Level: — Driven Brands Holdings Inc. shows moderate risk based on this filing. The company's financial performance and future outlook are subject to various risks inherent in the automotive services and franchising industries, including economic downturns, competitive pressures, and regulatory changes, as detailed in the full 10-K report.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Driven Brands' operational performance and potential challenges.

Key Numbers

Key Players & Entities

FAQ

When did Driven Brands Holdings Inc. file this 10-K?

Driven Brands Holdings Inc. filed this Annual Report (10-K) with the SEC on February 28, 2024.

What is a 10-K filing?

A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by Driven Brands Holdings Inc. (DRVN).

Where can I read the original 10-K filing from Driven Brands Holdings Inc.?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by Driven Brands Holdings Inc..

What are the key takeaways from Driven Brands Holdings Inc.'s 10-K?

Driven Brands Holdings Inc. filed this 10-K on February 28, 2024. Key takeaways: Driven Brands Holdings Inc. filed its 2023 Form 10-K on February 28, 2024, for the fiscal year ending December 30, 2023.. The company operates in the Services-Automotive Repair, Services & Parking industry (SIC 7500).. The filing covers the fiscal year from January 1, 2023, to December 30, 2023..

Is Driven Brands Holdings Inc. a risky investment based on this filing?

Based on this 10-K, Driven Brands Holdings Inc. presents a moderate-risk profile. The company's financial performance and future outlook are subject to various risks inherent in the automotive services and franchising industries, including economic downturns, competitive pressures, and regulatory changes, as detailed in the full 10-K report.

What should investors do after reading Driven Brands Holdings Inc.'s 10-K?

Investors should review the detailed financial statements and risk factors in the 10-K to understand Driven Brands' operational performance and potential challenges. The overall sentiment from this filing is neutral.

How does Driven Brands Holdings Inc. compare to its industry peers?

Driven Brands operates within the automotive services and franchising sector, a segment characterized by consistent demand for vehicle maintenance and repair, influenced by vehicle ownership trends and economic conditions.

Are there regulatory concerns for Driven Brands Holdings Inc.?

The company is subject to various federal and state regulations pertaining to business operations, franchising disclosures, and consumer protection laws within the automotive service industry.

Industry Context

Driven Brands operates within the automotive services and franchising sector, a segment characterized by consistent demand for vehicle maintenance and repair, influenced by vehicle ownership trends and economic conditions.

Regulatory Implications

The company is subject to various federal and state regulations pertaining to business operations, franchising disclosures, and consumer protection laws within the automotive service industry.

What Investors Should Do

  1. Review the full 10-K for detailed financial statements and segment performance.
  2. Analyze the risk factors section for potential challenges and uncertainties.
  3. Compare the reported fiscal year 2023 results with previous years' performance.

Key Dates

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year ending December 30, 2023, providing updated financial and operational data compared to previous filings.

Filing Stats: 4,361 words · 17 min read · ~15 pages · Grade level 15.7 · Accepted 2024-02-28 08:08:08

Key Financial Figures

Filing Documents

Risk Factors

Item 1A. Risk Factors 12

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 36

Cybersecurity

Item 1C. Cybersecurity 36

Properties

Item 2. Properties 37

Legal Proceedings

Item 3. Legal Proceedings 37

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 37 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 38

Reserved

Item 6. Reserved 39

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 40

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 60 Item 8. Financial Statements, Supplementary Data, and Reports of Independent Registered Public Accounting Firms (PCAOB ID Number 238 and 248 ) 61

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 107

Controls and Procedures

Item 9A. Controls and Procedures 107

Other Information

Item 9B. Other Information 108

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 108 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 109

Executive Compensation

Item 11. Executive Compensation 109

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 110

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 110

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 110 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 111

Form 10–K Summary

Item 16. Form 10–K Summary 114

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "plan," "possible," "potential," "predict," "project," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this document, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management, and expected market growth are forward-looking statements. In particular, forward-looking statements include, among other things, statements relating to: (i) our strategy, outlook, and growth prospects; (ii) our operational and financial targets and dividend policy; (iii) general economic trends and trends in the industry and markets; (iv) the risks and costs associated with the integration of, and or ability to integrate, our stores and business units successfully; (v) the proper application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates, and judgments; and (vi) the competitive environment in which we operate. Forward-looking statements are not based on historical facts but instead represent our current expectations and assumptions regarding our business, the economy, and other future conditions, and involve known and unknown risks, uncertainties, and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Given these uncertainties

Business

Item 1. Business Overview Driven Brands is the largest automotive services company in North America with a growing and highly-franchised base of approximately 5,000 locations across 49 U.S. states and 13 other countries. Our scaled, diversified platform provides high-quality services to an extensive range of retail and commercial customers. Our breadth of services covers a wide variety of automotive needs, including paint, collision, glass, and repair services, as well as a variety of high-frequency services, such as oil changes and car washes. Our portfolio of brands continues to generate consistent recurring revenue with strong operating margins. Our network generated approximately $2.3 billion in net revenue from approximately $6.3 billion in system-wide sales in 2023. The Company operates and reports financial information on a 52 or 53 week year with the fiscal year ending on the last Saturday in December. Our 2023 and 2021 fiscal years ending December 30, 2023 and December 25, 2021 each consisted of 52 weeks and our 2022 fiscal year ending December 31, 2022 consisted of 53 weeks. We are the largest provider of diversified automotive services in North America and have a portfolio of well-known brands, including CARSTAR , IMO , MAACO ("Maaco"), Meineke Car Care Centers ("Meineke"), PH Vitres D'Autos ("PH"), Take 5 Oil Change ("Take 5 Oil"), Take 5 Car Wash , Auto Glass Now ("AGN"), Fix Auto USA ("Fix Auto"), and 1-800-Radiator & A/C ("1-800 Radiator"), among others. Building from a 50 year history in the category with some of the most recognizable brands in the industry, our diversified platform caters to almost any automotive service occasion. Our Business Our suite of automotive services includes the following segments: Maintenance Our Maintenance segment is primarily comprised of the Take 5 Oil and Meineke brands. Our Maintenance brands service a combination of retail and commercial customers, such as fleet operators, through 1,786 total locations as o

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