Driven Brands Holdings Inc.DRVN

Driven Brands Holdings Inc. Earnings Per Share Disclosure

10-KFiled Feb 26, 20252 min read
(Loss) Earnings Per Share
The Company calculates basic and diluted (loss) earnings per share using the two-class method. The following table sets forth the computation of basic and diluted earnings per share attributable to common shareholders:
Year Ended
(in thousands, except per share amounts)
December 28, 2024December 30, 2023December 31, 2022
Basic (loss) earnings per share:
Net (loss) income attributable to Driven Brands Holdings Inc.$(292,496)$(744,962)$43,188 
Less: Net (loss) income attributable to participating securities, basic(5,331)(15,673)914 
Net (loss) income after participating securities, basic$(287,165)$(729,289)$42,274 
Weighted-average common shares outstanding160,319 161,917 162,762 
Basic (loss) earnings per share$(1.79)$(4.50)$0.26 
Year Ended
(in thousands, except per share amounts)
December 28, 2024December 30, 2023December 31, 2022
Diluted (loss) earnings per share:
Net (loss) income attributable to Driven Brands Holdings Inc.$(292,496)$(744,962)$43,188 
Less: Net (loss) income attributable to participating securities, diluted (825)(12,176)816 
Net (loss) income after participating securities, diluted$(291,671)$(732,786)$42,372 
Weighted-average common shares outstanding160,319 161,917 162,762 
Dilutive effect of share-based awards— — 3,981 
Weighted-average common shares outstanding, as adjusted160,319 161,917 166,743 
Diluted (loss) earnings per share$(1.82)$(4.53)$0.25 
Basic (loss) earnings per share is computed by dividing net (loss) income by the weighted-average number of common shares outstanding for the period. In addition, the Company’s participating securities are related to certain restricted stock awards issued to Section 16 officers, which include non-forfeitable dividend rights.
The Company has performance awards that are contingent on performance conditions which have not yet been met and therefore were excluded from the computation of weighted average shares of 1,628,715, 1,284,454, and 4,661,504 shares for the years ended December 28, 2024, December 30, 2023, and December 31, 2022, respectively.
For the years ended December 28, 2024 and December 30, 2023, we had net losses from operations. As a result, no potentially dilutive securities were included in the denominator for computing diluted loss per share for these periods as their inclusion would be antidilutive.
The following securities were not included in the computation of diluted shares outstanding because the effect would be antidilutive:
Year Ended
Number of securities (in thousands)
December 28, 2024December 30, 2023December 31, 2022
Restricted stock units296 483 51 
Stock Options1,740 1,740 2,003 
Total2,036 2,223 2,054 

Historical Timeline

Fiscal YearFiled
2024Feb 26, 2025Showing above
2023Feb 28, 2024
2022Mar 1, 2023
2021Mar 18, 2022

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

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