GrizzlyRock Capital's Kyle Mowery on $DRVN's goodco / badco thesis

Yet Another Value Podcast

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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