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

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 If you’ve been reading my newsletters, you know how often I rely on Tegus for my research. It’s truly revolutionized how I get up to speed on new industries and companies. Tegus has the largest transcript library in the world, with over 75% of private market transcripts. Whether you’re curious about AI, biotech, or any niche market, Tegus has the insights you need. What sets Tegus apart is its all-in-one platform. It’s packed with expert call transcripts, management checks, panel calls, and in-depth financial data. No more jumping between different services or piecing together fragmented data. With Tegus, everything is right at your fingertips. The best part? The insights you get are from the very people shaping the industries you’re interested in. You’ll find perspectives from insiders and executives that you simply can’t get anywhere else. To see Tegus in action and understand why it’s my go-to resource, visit Tegus.com/value – that’s T-E-G-U-S dot com slash value. Trust me, once you try Tegus, you’ll never look back.