Along with its 2024 financial results, Driven Brands announced the transition to a new president and chief executive officer (CEO) during an investor call on the morning of Feb. 25.
Charlotte, North Carolina-based company reported revenue of approximately $2.34 billion generating net loss of about $292 million. The company operates several automotive services brands and franchises, including Auto Glass Now (AGN) and third-party administrator (TPA) Driven Claims.
An Executive Transition
Officials announced that Jonathan Fitzpatrick, the current president and CEO, will step down. Chief operating officer Danny Rivera will take his place on May 9, 2025.
Danny Rivera, Driven Brands’ chief operating officer, will become its new president/CEO.
Officials say Fitzpatrick will still serve on Driven Brands’ board as its non-executive chair, and current chair Neal Aronson will continue as director. Fitzpatrick will also be the board’s senior advisor for the rest of 2025.
“I am honored to be appointed as the next CEO of Driven Brands,” Rivera said in an official statement. “…I look forward to continuing to build on our momentum and drive profitable growth.”
In the investor meeting, Rivera added that he was grateful for Fitzpatrick’s leadership. He returned that sentiment.
“Danny has been my partner at Driven for almost 13 years, and I know he’ll be a great CEO,” he said.
According to officials, Fitzpatrick told the board on February 24, 2025, that he would be stepping down. Driven Brands is expanding its board to 11 directors “in connection with the CEO transition.”
Segment Switch
Driven Brands is rearranging its segments, executives told investors. While AGN used to fall under Driven’s Paint, Collision & Glass (PC&G) segment, it will now be part of a segment called “Corporate and Other.”
The segment is mostly dedicated to glass-related services like the retail, corporate and insurance elements of its U.S. glass business and Driven Claims. The segment also includes “certain shared corporate services costs” for Driven Brands.
Chief financial officer Mike Diamond told investors that the re-segmentation would “better highlight the growth aspects” of the individual businesses.
“We believe our glass businesses are an opportunity for growth, and we want to let them [succeed] in their own segment,” Diamond said, later adding, “It’s most important to get [AGN] to where it is ready to shine, then we’d think about [giving it its own segment].”
Driven divided its other businesses into a franchise brands segment, an international car wash segment, and a segment dedicated to Take 5 Oil Change. The paint and collision brands in the old PC&G segment will be divided among these new segments. The company has signed a deal to sell its U.S.-based car wash service, executives announced.
Fourth Quarter Financial Results
According to the company’s fourth quarter and fiscal year 2024 financial report, it had a revenue of about $2.34 billion for the whole year and about $564 million in the fourth quarter. This is slightly up from about $2.3 billion in 2023 and about $554 million in the fourth quarter of 2023.
“Fiscal year 2024 was a year of growth and strong execution for Driven Brands,” said Fitzpatrick.
The company ended the 2024 fiscal year with a net loss of approximately $292 million, down from 2023’s net loss of about $745 million
Driven’s PC&G segment delivered about $424.6 million in revenue in 2024 and about $98 million in the fourth quarter. In 2023, segment revenue was about $326 million for the year and about $85 million for the fourth quarter.
Rivera told investors that “[Driven’s] glass business successfully transitioned from an acquisition stage to a growth stage” over the course of 2024.
Driven Claims’ newest insurance partnerships should start to generate financial results in the first two quarters of 2025, Rivera says.
Driven Brands has three main goals for the new fiscal year, according to Fitzpatrick.
“Looking ahead to 2025, our focus is clear: delivering on our outlook, reducing debt and active portfolio management,” he said.
