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Driven Brands CAO to Resign, CFO to Take Interim Role

EditorLina Guerrero
Published 12/12/2024, 04:58 PM
DRVN
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CHARLOTTE, NC – Driven Brands Holdings Inc. (NASDAQ:DRVN), a $2.82 billion market cap leader in automotive repair services, announced on Monday that Michael Beland, the Chief Accounting Officer, will resign effective January 3, 2025. The company's stock has shown strong momentum, delivering a 33% return over the past year and trading near its 52-week high of $17.45. The news comes following Beland's decision to pursue another opportunity. Driven Brands has confirmed that his departure is not due to any disagreements on financial reporting or accounting practices.

Michael Diamond, currently serving as the Executive Vice President and Chief Financial Officer, will assume the role of interim principal accounting officer upon Beland's exit. The company has initiated a search for Beland's successor.

Beland's resignation was disclosed in a regulatory filing with the Securities and Exchange Commission. The filing clarified that the transition does not stem from any disputes over the company's financial integrity or accounting methods.

Driven Brands, headquartered in Charlotte, North Carolina, is known for its comprehensive services in the automotive repair sector. With a focus on maintaining high standards of financial reporting, the company has moved swiftly to ensure a seamless transition in its accounting leadership.

The market will be watching closely as Driven Brands navigates this change in its financial team. According to InvestingPro, the company maintains a FAIR financial health score, with analyst price targets ranging from $14.50 to $22.00. For deeper insights into DRVN's financial position and growth prospects, investors can access the comprehensive Pro Research Report, which provides expert analysis of key metrics and industry positioning.

In other recent news, Driven Brands has been the focus of analyst attention, with Stifel maintaining a Buy rating on the company and keeping its price target steady at $20. The firm's projections for fiscal year 2024 revenue stand at $2.34 billion, slightly below the consensus of $2.35 billion from other analysts. This outlook is based on a steady performance in Driven Brands' Maintenance segment and anticipates continued stability in the U.S. Car Wash segment.

Stifel's analysis also takes into account the recent sale of Driven Brands' Canadian distribution business. Despite this divestiture, the firm's outlook for Driven Brands' financials remains positive, with an earnings per share estimate for fiscal year 2025 set at $1.15.

In more recent developments, Driven Brands reported a modest rise in its Q3 2024 revenue, reaching $592 million, a 2% increase from the previous year, alongside adjusted EBITDA of $138.8 million. The company also saw its 15th consecutive period of same-store sales growth, bolstered by the addition of 56 new stores and a 1.1% increase in same-store sales.

Finally, Driven Brands anticipates full-year 2024 revenue to fall between $2.33 billion and $2.43 billion, with adjusted EBITDA expected to range from $529 million to $559 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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