Driven Brands Holdings (DRVN) Company Report

Driven Brands has sold its US and international car wash businesses to align with its core "growth and cash" strategy, which is expected to result in a loss of approximately $80 million in EBITDA but maintain strong free cash flow.
The company is focused on the growth of its Take 5 segment, targeting 2,500 units and opening over 150 new locations annually, with 170 opened last year. Take 5's EBITDA margins remain steady around 35%.
Despite the collision industry being down approximately 10% year-over-year in Q1 and Q2, Driven Brands is gaining market share and saw improvement in Q3.
Management reissued Q4 guidance and remains confident in it, despite observed market choppiness.

1 day ago

Transcript

Driven Brands Discusses Strategic Asset Sales, Leverage Reduction, and Growth Initiatives

DRVN

M&A

Guidance Update

New Projects/Investments

Driven Brands has sold its U.S. and international car wash businesses, which did not align with its "growth and cash" strategy. This is expected to accelerate the company's commitment to reaching 3 times net leverage by the end of 2026, with the international car wash sale contributing approximately 0.3 times to this reduction.
The company's core strategy focuses on the Take 5 oil change business for growth, targeting 2,500 units and planning to open 150+ locations annually. Cash generation is driven by its North American franchise businesses, including Meineke and Maaco.
The Take 5 business demonstrated strong performance with 7% growth in Q3 , consistently increasing attachment rates to the low 50s , and successfully introducing new services like "differentials". Take 5's EBITDA margins have remained stable at approximately 35%.
Management acknowledged "choppiness" in Q4 due to macroeconomic factors but expressed confidence in the reissued guidance, which incorporated these dynamics.

1 day ago

Transcript

Driven Brands Sells International Car Wash Business, Targets 3x Net Leverage by 2026

DRVN

M&A

Guidance Update

Revenue Acceleration/Inflection

Driven Brands has sold its international car wash business, following the sale of its US car wash business, to align with its core "growth and cash" strategy.
This divestiture is expected to accelerate the company's commitment to achieving 3 times net leverage by the end of 2026, with an estimated pro forma impact of 0.3 times reduction in leverage, using the proceeds to pay down debt.
The company's strategy focuses on Take 5 Oil Change as its primary growth engine, aiming to open 150-plus locations annually and leveraging its 21 consecutive quarters of same-store sales growth. Franchise businesses like Meineke and Maaco are targeted for steady cash generation with margins exceeding 60%.
Post-divestiture, Driven Brands anticipates remaining a heavy free cash flow world, despite an estimated $80 million reduction in EBITDA from the sold international car wash business, with projected pro forma CapEx of 6.5%-7% for the current year.

1 day ago

Transcript

Driven Brands Sells IMO Car Wash to Franchise Equity Partners

DRVN

M&A

New Projects/Investments

Franchise Equity Partners (FEP) has entered into an agreement to acquire IMO Car Wash from Driven Brands (DRVN), as announced on December 2, 2025.
The transaction includes IMO's entire portfolio of 720 locations, primarily situated across the United Kingdom and Germany, with additional sites in nine other European countries and Australia.
IMO Car Wash is recognized as the largest tunnel car wash business in the world.
This acquisition marks FEP's inaugural transaction outside the United States.

3 days ago

Press Release

Driven Brands to Sell International Car Wash Business for €406M

DRVN

M&A

Guidance Update

Accounting Changes

Driven Brands Holdings Inc. has agreed to sell its international car wash business, IMO, to Franchise Equity Partners for an initial purchase price of 406 million euros.
The company plans to use the proceeds primarily to pay down debt and focus on its core North American operations.
This sale is expected to reduce Driven Brands' pro forma leverage by approximately 0.3x, supporting its goal to achieve a 3x net leverage ratio by the end of 2026.
Driven Brands will reclassify the international car wash business as discontinued operations starting in Q4 2025.

3 days ago

Morningstar

Driven Brands Announces Agreement to Divest International Car Wash Business and Updates FY2025 Outlook

DRVN

M&A

Guidance Update

Driven Brands Holdings Inc. has entered into a definitive agreement to sell IMO, its international car wash business, to Franchise Equity Partners.
The sale price for IMO is €406 million, based on its balance sheet as of June 30, 2025, and the transaction is expected to close in the first quarter of 2026.
This divestiture is anticipated to reduce pro forma leverage by approximately 0.3x, with cash proceeds primarily used to pay down debt, supporting the company's commitment to achieve 3x net leverage by the end of 2026.
For the fiscal year ending December 27, 2025, the company updated its outlook for continuing operations, expecting revenue of ~$1.85 - $1.87 billion, Adjusted EBITDA of ~$445 - $455 million, and Adjusted Diluted EPS of $1.18 to $1.23.

3 days ago

8-K

Bragar Eagel & Squire Investigates Driven Brands Holdings Officers and Directors

DRVN

Legal Proceedings

Demand Weakening

Bragar Eagel & Squire, P.C. is investigating certain officers and directors of Driven Brands Holdings, Inc..
This investigation follows a class action complaint filed on December 22, 2023, alleging the company made materially false and misleading statements and omissions.
The allegations concern Driven Brands' ability to efficiently integrate acquired businesses, specifically its U.S. auto glass businesses, and the performance and competitive position of its car wash business segment.
The complaint claims the company misrepresented its acquisition integration as a "core strength" and its car wash business as a "competitive moat," while downplaying "softness" in customer demand.

Nov 23, 2025, 4:49 AM

Press Release

Driven Brands Reports Strong Q3 2025 Results and Narrows Full-Year Guidance

DRVN

Earnings

Guidance Update

Management Change

Driven Brands reported strong Q3 2025 financial results, with revenue increasing 6.6% to $535.7 million, adjusted EBITDA reaching $136.3 million, and adjusted diluted EPS from continuing operations at $0.34. The company achieved its 19th consecutive quarter of positive same-store sales growth at 2.8%.
The company made significant progress in strengthening its balance sheet, reducing net leverage to 3.8 times net debt to adjusted EBITDA from 4.1 times at the end of Q2 2025, and repaid approximately $171 million of debt during the quarter. The goal remains to reach 3 times net leverage by the end of 2026.
The Take 5 Oil Change segment continued its strong performance, with same-store sales increasing 6.8%, revenue growing 13.5%, and adjusted EBITDA rising 15% to $107.3 million in Q3 2025. This segment also added 38 net new units.
Driven Brands narrowed its full-year 2025 guidance, now expecting revenue between $2.1 billion and $2.12 billion, adjusted EBITDA between $525 million and $535 million, and adjusted diluted EPS from continuing operations between $1.23 and $1.28. This revised outlook reflects strong year-to-date performance combined with a more cautious view for Q4 due to macroeconomic uncertainty.
The company announced key management changes, with Mo Khalid appointed Chief Operating Officer and Tim Austin named President of Take 5 Oil Change.

Nov 4, 2025, 1:30 PM

Transcript

Driven Brands Reports Strong Q3 2025 Results, Narrows Full-Year Guidance

DRVN

Earnings

Guidance Update

Management Change

Driven Brands reported Q3 2025 revenue of $535.7 million, an increase of 6.6% year over year, with adjusted EBITDA of $136.3 million and adjusted diluted EPS of $0.34.
The company achieved its 19th consecutive quarter of positive same-store sales growth at 2.8% and reduced its net leverage to 3.8 times, progressing towards a target of 3 times by 2026.
The Take Five Oil Change segment continued its strong performance with 6.8% same-store sales growth and 15% adjusted EBITDA growth to $107.3 million in Q3 2025, opening 38 net new units.
Driven Brands narrowed its full-year 2025 guidance ranges for revenue to $2.1 billion to $2.12 billion, adjusted EBITDA to $525 million to $535 million, and adjusted diluted EPS to $1.23 to $1.28, citing a more cautious outlook due to a choppy macroeconomic environment in Q4.
Mo Khalid was appointed Chief Operating Officer and Tim Austin was named President of Take Five Oil Change, strengthening the company's leadership.

Nov 4, 2025, 1:30 PM

Transcript

DRVN Reports Q3 2025 Financial Metrics

DRVN

Earnings

Debt Issuance

DRVN reported a net leverage ratio of 3.8x as of Q3 2025.
The company's Debt Agreement Adjusted EBITDA for the LTM period ended September 27, 2025, was $543,930 thousand.
As of September 27, 2025, DRVN had Total Debt of $2,214,380 thousand and Net Debt of $2,052,352 thousand.

Nov 4, 2025, 1:30 PM

Presentation

Earnings Transcripts

Quarterly earnings call transcripts for Driven Brands Holdings.

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