One Hour Analysis: Driven Brands Holdings ($DRVN), Road Kill or Road to Redemption?
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Driven Brands Holdings Inc. (DRVN) – $13.46 Huck Looking for Investment Ideas THE AUTOMOTIVE CARE INDUSTRY Driven Brands operates in an industry that has many similar characteristics as the restaurant industry, including the sale of needs-based services that are relatively recession resistant. The automotive care industry is a $390B a year industry with strong tailwinds. There are currently over 285M cars on the road (growing 4% a year) and customers travel over 3T miles a year. The average age of a car on the road today continues to rise and is currently over 12.5 years. The industry is highly fragmented (80% independent shops) and the smaller competitors tend to be relatively unsophisticated. Also similar to the restaurant industry is the limited risk of eCommerce incursion, as well as the increasing importance of digital strategies such as loyalty programs. Brand recognition and reputation (e.g. McDonald’s, Chipotle, Starbucks) is crucial as well, as are the operational and marketing benefits of national scale.
One Hour Analysis: Driven Brands Holdings ($DRVN), Road Kill or Road to Redemption?
One Hour Analysis: Driven Brands Holdings…
One Hour Analysis: Driven Brands Holdings ($DRVN), Road Kill or Road to Redemption?
Driven Brands Holdings Inc. (DRVN) – $13.46 Huck Looking for Investment Ideas THE AUTOMOTIVE CARE INDUSTRY Driven Brands operates in an industry that has many similar characteristics as the restaurant industry, including the sale of needs-based services that are relatively recession resistant. The automotive care industry is a $390B a year industry with strong tailwinds. There are currently over 285M cars on the road (growing 4% a year) and customers travel over 3T miles a year. The average age of a car on the road today continues to rise and is currently over 12.5 years. The industry is highly fragmented (80% independent shops) and the smaller competitors tend to be relatively unsophisticated. Also similar to the restaurant industry is the limited risk of eCommerce incursion, as well as the increasing importance of digital strategies such as loyalty programs. Brand recognition and reputation (e.g. McDonald’s, Chipotle, Starbucks) is crucial as well, as are the operational and marketing benefits of national scale.