Driven Brands Holdings Inc. (NASDAQ: DRVN) stock rallied 5.12% on Wednesday, driven by the company's impressive fourth quarter and full-year 2024 financial performance, coupled with its strategic initiatives to streamline operations and enhance shareholder value.

In the fourth quarter, Driven Brands reported a 2% year-over-year increase in revenue to $564 million, supported by the addition of 70 net new stores and a solid 2.9% same-store sales growth. The company's adjusted EBITDA for the quarter stood at $130.7 million, reflecting its operational efficiency and cost management efforts.

The company's flagship Take 5 oil change business emerged as a key growth driver, posting a remarkable 9.2% same-store sales growth in Q4 2024 and 6.8% for the full fiscal year. This robust performance, coupled with the opening of 174 net new Take 5 stores during the year, contributed significantly to Driven Brands' overall growth, with full-year 2024 revenue reaching $2.3 billion and adjusted EBITDA increasing 7% year-over-year to $553 million.

In line with its active portfolio management strategy, Driven Brands announced a definitive agreement to sell its US car wash business, a move that is expected to streamline the company's focus on its core operations. This divestiture, slated for completion in Q2 2025, is anticipated to unlock further value for shareholders.

Additionally, Driven Brands demonstrated its commitment to reducing debt and improving its leverage position. By the end of Q4 2024, the company's net leverage stood at 4.4 times net debt to adjusted EBITDA, reflecting its successful efforts to pay down approximately $248 million in debt throughout the fiscal year.