- Coronavirus restrictions aided sales for grocery and home improvement chains while acting as a headwind for services spending last year, but those trends are reversing in 2021.
- Car maintenance and repair spending and auto insurance losses slumped in 2020 as consumers drove less, but are rebounding in 2021, benefiting DRVN's maintenance, car wash and collision businesses.
- The population of cars in the US 6 years or older is likely to rise significantly through 2025, and older vehicles are a lucrative market for auto repair shops.
- While DRVN is the largest automotive services company in North America, its market share is between 1% and 4% in its core markets, leaving room to grow by acquiring smaller operators.
- DRVN's franchise model drives superior growth and profit margins, yet it trades at a discount to its peers; we see upside to around $32.
For further details see:
Driven Brands: A Stealth Reopening Play With M&A Upside