Jonathan Fitzpatrick: Yes. Great. Thanks, Robby. Really, what we’re saying is I’m not calling out any of our individual businesses as having direct impact at this moment with the lower income households. What I’m saying is that given sort of the inflationary environment, we do believe that, that customer cohort is likely to be the most challenged throughout the balance of the year. So that’s sort of number one. I think when you think about Driven in our portfolio, there’s a couple of things that are naturally in our favor. Number one, we mentioned on the last call, about 50% of our sales come from commercial or B2B customers. So that’s a really nice hedge and obviously, there’s no household income impacts there with that B2B customer set.
I think the other thing is if you look across our portfolio, the majority of our businesses, Robby are needs-based businesses. So it’s very hard to put those off. You really have to get those done. If you look at the history of Driven Brands, and obviously, we’ve only been public a couple of years, if you look at the last two major sort of financial stress points, the ’07, ’08 time and obviously, March of 2020, because of our needs-based businesses, we see very minimal impact over time in those two time periods. So I’m just calling out that I think there is likely incremental challenge to those lower household incomes with the inflationary environment, but I think Driven is uniquely positioned to sort of manage through that. So that’s what I would say.
Robby Ohmes: Got you. That’s really helpful. And then just a follow-up, just on Take 5 with the online appointments, I’m just curious, how do you manage that if that takes off like a rocket, and you just get a ton of online appointments. Does that interfere at all with the drive-up customer?
Danny Rivera: No. Hey Robby, this is Danny. I appreciate the question. No, it doesn’t interfere. So the team has done a really nice job of accounting for. Our model predominantly is we want folks to come in at any time, no appointment necessary. The way that we’ve rolled out appointments that accounts for our business model and it won’t interfere. So it’s pretty intelligently laid out, and we like what we’re seeing so far.
Robby Ohmes: Great. Thanks so much.
Operator: Your next question comes from Seth Sigman from Barclays. Please ask your question.
Seth Sigman: Great, thanks. Good morning everyone. I wanted to focus on the Maintenance segment and the demand trends. Any more color on just the cadence after that difficult January? I guess, what did you see the rest of the quarter and then even early here in the second quarter? Any more perspective on that end customer, based on the issues you talked about, is that just driving lower transactions, just less frequency or is there a trade down that you’re seeing as well? Thanks.
Jonathan Fitzpatrick: Good morning, Seth, Jonathan again. And I just want to reiterate, we’re saying that we think lower household income customers could be challenged with the sort of ongoing inflationary conditions. We’re not pointing to any of our businesses that have seen impact yet. So I think we’re just being prudent around the balance of the year. Within Q1 and maintenance, I think we did see very challenging weather conditions in Q1. I think most retailers in the United States saw that. The good news about our Maintenance segment, both our Meineke business and our Take 5 Oil Change business, it is a truly needs-based category. So while we did see some challenge in Q1, we obviously think that we catch up those customers that we’re looking for those services, so nothing at this point in that segment that concerns us. Obviously, we’re keeping an eye very closely on how the consumer reacts throughout the balance of the year.
Seth Sigman: So just fair to think that as the weather has normalized in certain markets, you’ve seen evidence of that pent-up demand is coming through, I guess that. And then just I have a follow-up question there around the guidance, I think I heard you say most of the comp growth is expected to come in the second half of the year. That’s overall across the business segments. So does that imply second quarter will look a lot like the first quarter?
Jonathan Fitzpatrick: Yes. I would say that on your first question on same-store sales for maintenance segment, we’re very pleased with how the business finished the quarter and excited about the next three quarters for that business. And then I’ll let Gary talk about the guidance.
Gary Ferrera: Yes. I mean we don’t give specifically quarterly guidance. I mean, I think I was pretty directed where I thought at least adjusted EBITDA will come out in Q2 and that in the second half of the year is where we expect to see most of the growth because just the comps and the lapping of the comps. Q2 is usually our largest quarter on an adjusted EBITDA basis. We don’t see that changing. I think that’s it.
Seth Sigman: Okay, thanks guys.
Operator: Your next question comes from Brian McNamara from Canaccord Genuity. Please ask your question.
Madison Callinan: Hi guys. This is Madison Callinan on for Brian. Thanks for taking my questions. The CFO change is just really typically aren’t well received by the market. It was two changes in the year regardless of the region or circumstance will naturally concerns investors. Will you guys reassure investors concerned by the recent turnover in the seat? Thanks.
Jonathan Fitzpatrick: Well maybe I’ll start with Gary, and then I’ll sort of follow up, but…
Gary Ferrera: Yes. I’d repeat what I said is go into an opportunity to work with someone I’ve known for three decades and move my family back to Colorado or be back with my family in Colorado. But loved working with Jonathan and Danny. And Joel has been by my side ever since I walked in the door. So the two of us have done everything done together, and Mike has been here for a few years and knows the company in and out. So I think transition should be pretty smooth.
Jonathan Fitzpatrick: Yes, Madison, I think it’s a good question. We’ve got a strong bench of talent here. Joel is going to do an amazing job as Interim. Michael Beland is our fabulous Chief Accounting Officer. Gary has got a phenomenal opportunity and a lot of this is personal decisions. And I would remind you that there is no one person that’s overly important in Driven Brands, and we feel really good about the year. And again, I would just thank Gary for all the partnership over the last 12 months.
