Driven Brands ( NASDAQ: DRVN ) shares rose on Wednesday after guiding toward resilient sales in 2023.
The North Carolina-based specialty retail group posted a mixed result for the fourth quarter, beating on the bottom line but narrowly missing top-line expectations. Same store sales rose sharply in the quarter, jumping 11% from the prior year quarter.
"2022 was a year of record performance and significant strategic progress for Driven Brands. We deepened our competitive moat as our differentiated offering resonated with our customers,” CEO Jonathan Fitzpatrick commented. “We gained significant market share in this large and growing $350 billion needs-based automotive services category, and we are leveraging our proven playbook to drive long-term, sustainable growth.”
Moving forward, management projected $2.35B for the year ahead, above the consensus of $2.3B. Additionally, an adjusted EBITDA guidance of approximately $590M came in above the $586.5M consensus forecast. Those figures appeared to overshadow a light adjusted EPS forecast of approximately $1.21 against a consensus of $1.32.
“Our guidance reflects that momentum, our continued confidence in our business model, the resilience of the category, and a track record of execution,” Fitzpatrick said.
Shares of Driven Brands ( DRVN ) drove about 2% higher shortly after the market open on Wednesday.
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Driven Brands stock gains on above-consensus sales forecast