Driven Brands Likely to Deliver Relatively In-Line Q2 Results, RBC Says

MT Newswires Live
08/04

Driven Brands (DRVN) will likely post relatively in-line Q2 Results, RBC Capital Markets said in a note emailed Tuesday.

The investment firm said it expects Driven Brands to deliver Q2 same-store sales growth of 1.2%, above the consensus estimate for 1.1% growth, and adjusted earnings before interest, taxes, depreciation and amortization of $105 million, also above the consensus estimate for $103 million.

RBC said it sees "potential for modest upside relative to expectations" on the company's Take 5 maintenance center segment, but also expects "franchised brands to remain pressured."

The investment firm expects the Take 5 business to post same-store sales growth 3.5%, above consensus estimates calling for an increase of 3.4%.

Meanwhile, franchised brands' same-store sales rose 0.9% in Q1 as the segment was backed by a quarter on quarter improvement in the collision business, the note said, adding that for Q2, Driven Brands' management indicated expectations for "some moderation in trends."

RBC has an outperform rating on Driven Brands and $17 price target.

Price: 14.80, Change: +0.23, Percent Change: +1.54

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