Driven Brands Reports Significant Financial Growth During 2023 Fiscal Year

In a February 22 conference call meeting, Auto Glass Now’s parent company Driven Brands reported solid financial growth for its 2023 fiscal year and fourth quarter.

Driven Brands is based in Charlotte, North Carolina. It is the parent company of many automotive services companies, including Auto Glass Now, which has auto glass repair and replacement shops across the United States.

Driven Brands produced a revenue of $2.3 billion in its 2023 fiscal year, which ended December 30, 2023. This marks a 13% increase from their previous fiscal year.

The company cites a 7% same-store sales growth and a 4% net store growth for its 12%, or $6.3 billion, system-wide increase in 2023 over the prior year.

Driven Brands president and CEO Jonathan Fitzpatrick showcases building their United States glass platform as a 2023 highlight. He also stated that that their fleet team generated approximately $470 million in system-wide sales, which he said was their best year ever.

Fitzpatrick also emphasized how important their paint, collision and glass segment was to Driven Brands.

“Now our total commercial business represents approximately 50% of total system-wide sales when you include sales from our insurance partners in glass collision and paint,” he said. “Commercial sales are incredibly important to Driven because our franchisees liked the business and the sales are predictable and sticky. This is a great balance to our retail sales.”

The paint, collision, and glass segment (PCGS) of Driven Brands, which includes Auto Glass Now, had approximately $3.39 billion in system-wide sales and a little over half a billion dollars in revenue over the 2023 fiscal year. In the fourth quarter, the segment saw approximately $835 million in system-wide sales and $117 million in revenue.

For the company as a whole, the PCGS plus the maintenance segment drove a revenue increase of $554 million, or 2.6%, for the fourth quarter. This was less than the revenue generated in the fourth quarter of the previous fiscal year, executive vice president and CFO Gary Ferrera

Auto Glass Now is now integrated within Driven Brands in its 2023 fiscal year. Driven Brands had acquired Auto Glass Now in 2022.

Although the proposed class action suit against Driven was not mentioned, executive vice president and COO Danny Rivera’s comment on integration seemed to address it. “I’m happy to say that as of today, the integration is behind us,” Rivera said. “Auto Glass Now is operating as one brand with one operating playbook.”

The integration means Driven Brands has “implemented (their) core systems and processes, including one point of sale system, one phone and lead management system, one payroll system and comp plan.”

Rivera said Auto Glass Now, along with several of their other franchises, are “managed to deliver accelerated growth in terms of revenue” and that Auto Glass Now is in a good position to increase its performance in 2024.

Driven Brands projects a 2024 revenue of about $2.35-$2.45 billion, a same-store sales growth of 3% to 5% and a new store growth of about 205 to 220 stores. The PCGS is expected to yield a net store growth of 25 to 35 stores with 85% franchise.

Though Driven Brands’ 2024 fiscal year has had a rocky start, Fitzpatrick remains optimistic.

“January was a challenging month with sales been impacted by multiple storms, flooding and freezing temperatures across many of our markets,” Fitzpatrick said. “And we estimate this could negatively impact performance in Q1. However, we don’t see this having a material impact on the full year.”

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