Coming off a record year in 2017, CARSTAR North America aims to hit the 600-store mark and $1 billion in revenue this year, company executives said during a press briefing in Palm Springs, Calif.
The MSO posted sales of approximately $850 million and added 80 new stores in 2017, according to Arlo Johnson, VP of insurance for CARSTAR.
CARSTAR, which is part of Charlotte-based Driven Brands, also has posted 55 consecutive months of same-store sales gains, according to Johnson.
Johnson attributed most of that growth to new performance-based DRP agreements with insurance carriers, calling them “significant volume opportunities” for CARSTAR.
“We’ve had wild success in that area,” Johnson added.
CARSTAR has inked four new performance-based DRP agreements with “top 10 carriers” in the last two years, according to Johnson.
The company expects to hit $1 billion in sales in 2018, and likely will reach 600 stores by mid-year, Johnson said.
Johnson acknowledged that the overall collision repair market “is yielding some growth,” as miles driven are up, and accident frequency and severity have been on the rise. But new DRP programs have been the biggest catalyst for CARSTAR, he noted.
“We’re hitting a nice trajectory at CARSTAR right now,” Johnson added.