Three law firms have begun investigating potential securities fraud claims on behalf of Driven Brands shareholders following the company’s stock hitting an all-time low last week.
Shares of Driven Brands (NASDAQ: DRVN), based in Charlotte, N.C., closed at $25.83 on Aug. 1. The company announced its second quarter results the following day, notably admitting that it’s “a few quarters behind” integrating multiple auto glass acquisitions under its Auto Glass Now brand. Its stock subsequently plunged 41.15% to close at $15.20.
Driven Brands’ stock opened at $15.37 this morning.
In the earnings announcement, Driven Brands said it was updating its guidance for fiscal year 2023 “based on weaker than anticipated performance in the car wash segment and U.S. glass business.” Specifically, the company said its glass segment “has been impacted by integration delays.”
The company revised its revenue guidance downward from $2.35 billion to $2.30 billion, while adjusted EPS was revised from $1.21 to $.92.
For the second quarter, Driven Brands recorded revenue of $606.9 million, up 19 percent versus the prior year. Net income increased to $37.7 million versus a net loss of $57 million in the prior year.
The law firms of Wolf Popper LP (New York), Kirby McInerney LP (New York) and Holzer & Holzer LLC (Atlanta) announced they would begin investigating potential securities fraud claims on behalf of Driven Brands shareholders.
In 2015, Driven Brands was acquired by private equity firm Roark Capital Group. The firm subsequently bought other businesses and integrated them with Driven Brands before taking the company public in January 2021.
The following year, Driven Brands acquired two auto glass companies to become the second-largest player in the U.S. auto glass industry. Its auto glass portfolio consists of Auto Glass Now, All Star Glass, KK Glass and Morris Glass.