HG Vora Capital Management’s Stock Picks For 2025

6. Driven Brands Holdings Inc (NASDAQ:DRVN)

Shares held by HG Vora Capital Management: 7.40 million

Value of Position: $119.44 million

Next on the list of HG Vora Capital Management’s Stock Picks is Driven Brands Holdings Inc (NASDAQ:DRVN), which owns a portfolio of North American automotive service brands, including Take 5 Oil Change, Meineke Car Care Centers, and 1-800-Radiator & A/C. HG Vora Capital Management added Driven Brands to its equity portfolio during the fourth quarter of 2023, after the stock plummeted by some 60% between May and October. In August 2023, after weaker-than-anticipated quarterly results, Driven Brands Holdings Inc (NASDAQ:DRVN) had to slash its guidance and the management stated that it would have to cut the scope of its auto-glass network by a third due to issues with integrating the auto-glass network. Later, Driven Brands had to take a goodwill impairment of $1.0 billion on its car wash segment after previously having disclosed declines in same store car wash sales. Nevertheless, in 2024, the company showed some signs of recovery with its stock gaining more than 20%. In its last quarterly report, for the third quarter of 2024, Driven Brands Holdings Inc (NASDAQ:DRVN) posted adjusted EPS of $0.26, beating the consensus estimate of $0.22, while its revenue of $591.7 million was slightly lower than anticipated and grew by 2% on the year, while same store sales appreciated by 1.1% on the year. The growth was driven by strong performance of the Take 5 Oil Change segment, which recorded 15% revenue growth and a 5% same store sales increase.