Kyle Mowery, Managing Partner and Portfolio Manager at GrizzlyRock Capital, joins the podcast for the third time to discuss his thesis on Driven Brands Holdings Inc. (NASDAQ: DRVN), an automotive services company in North America, providing a range of consumer and commercial automotive needs, including paint, collision, glass, vehicle repair, oil change, maintenance and car wash
To see the full DRVN deck, see: https://www.grizzlyrockcapital.com/wp-content/uploads/2024/10/GrizzlyRock-Driven-Brands-Write-Up-October-2024.pdf
Chapters:
[0:00] Introduction + Episode sponsor: Tegus
[2:05] What is Driven Brands Holdings and why is it so interesting?
[3:38] What is Kyle seeing that the market is missing with $DRVN
[7:20] $DRVN trading history and what caused this dislocation that gives the perceived opportunity here
[11:59] What protects $DRVN from oversupply (oil change services) problem?
[16:37] Why is the brand and scale beneficial to Driven/Take 5?
[18:35] $DRVN valuation / why do they not report Take 5 numbers separately?
[24:59] How does Kyle view Roark's ownership of the company
[28:23] Capital allocation
[34:01] EV Risk
[38:03] Glass and Collision segments
[46:45] Path for Car Wash
[51:44] $DRVN bear case
[56:50] Final thoughts
Episode sponsor: Tegus
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