Driven Brands (NASDAQ:DRVN) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Driven Brands (NASDAQ:DRVN) announced its quarterly earnings data on Thursday. The company reported $0.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.26 by $0.03, Briefing.com reports. The company had revenue of $507.42 million for the quarter, compared to analysts’ expectations of $506.33 million. Driven Brands had a net margin of 9.08% and a return on equity of 25.70%. Driven Brands’s revenue was down 7.9% compared to the same quarter last year. During the same period in the previous year, the company posted $0.36 EPS.

Here are the key takeaways from Driven Brands’ conference call:

• Take 5 continued to lead growth, posting 3.6% same-store sales growth, 13% systemwide sales growth, and its 24th consecutive quarter of positive comps. The company added 50 net locations and maintains an approximately 800-unit pipeline toward a long-term goal of more than 2,500 stores.
• Driven strengthened its balance sheet, ending the quarter at 3.1x net leverage and remaining on track to reach 3.0x by year-end. Second-quarter free cash flow rose to $44.7 million, while interest expense declined by $10.4 million year over year.
• Management cited continued pressure on lower-income consumers, higher oil-related input costs, and uncertainty from the Middle East conflict. The company expects these factors to weigh on sales in the second half, although it plans to use disciplined pricing and targeted promotions to offset some impact.
• Although full-year 2026 guidance was reiterated, management now expects adjusted EBITDA to be closer to the low end of its $430 million-$460 million range. Restatement costs are expected at the high end of the previously stated $35 million-$45 million range, with some costs shifting into the third quarter.
• Franchise Brands generated reliable cash flow with a 59% adjusted EBITDA margin, but Maaco remained pressured and collision repair showed only stabilization. Auto Glass Now reported 2.6% same-store sales growth, though its $3.5 million adjusted EBITDA was reduced by a $4 million out-of-period charge and management cautioned that quarterly performance will be uneven.

Driven Brands Trading Down 11.3%

DRVN traded down $1.65 during trading on Thursday, hitting $12.96. The company’s stock had a trading volume of 1,174,407 shares, compared to its average volume of 1,500,898. Driven Brands has a twelve month low of $9.80 and a twelve month high of $19.74. The stock has a market cap of $2.14 billion, a PE ratio of 11.57 and a beta of 0.95. The firm’s 50 day moving average price is $14.04 and its 200-day moving average price is $13.72. The company has a debt-to-equity ratio of 2.08, a current ratio of 1.38 and a quick ratio of 1.25.

Hedge Funds Weigh In On Driven Brands

Large investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC grew its holdings in Driven Brands by 744.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,103 shares of the company’s stock valued at $37,000 after buying an additional 1,854 shares during the period. Osaic Holdings Inc. boosted its position in shares of Driven Brands by 82.1% in the second quarter. Osaic Holdings Inc. now owns 2,087 shares of the company’s stock worth $37,000 after acquiring an additional 941 shares during the last quarter. Federated Hermes Inc. grew its holdings in Driven Brands by 30.5% in the fourth quarter. Federated Hermes Inc. now owns 8,727 shares of the company’s stock valued at $129,000 after purchasing an additional 2,040 shares during the period. Tower Research Capital LLC TRC grew its holdings in Driven Brands by 709.3% in the second quarter. Tower Research Capital LLC TRC now owns 8,490 shares of the company’s stock valued at $149,000 after purchasing an additional 7,441 shares during the period. Finally, Amundi acquired a new position in Driven Brands during the fourth quarter worth approximately $169,000. 77.08% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the company. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $14.75 price objective on shares of Driven Brands in a report on Wednesday, May 20th. Robert W. Baird set a $18.00 price target on shares of Driven Brands and gave the company an “outperform” rating in a report on Wednesday, May 20th. BTIG Research reiterated a “buy” rating and issued a $17.00 price objective on shares of Driven Brands in a research note on Friday, June 12th. Morgan Stanley decreased their price objective on shares of Driven Brands from $17.00 to $16.00 and set an “equal weight” rating on the stock in a report on Wednesday, May 20th. Finally, BMO Capital Markets lowered their price target on Driven Brands from $18.00 to $14.00 and set a “market perform” rating on the stock in a report on Thursday, May 21st. Two research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $17.18.

Driven Brands Company Profile

Driven Brands Holdings Inc (NASDAQ: DRVN) is a leading North American provider of automotive aftermarket services, operating through a network of franchised and company-owned locations. The company’s platform encompasses a diverse portfolio of car care and maintenance brands, including Meineke Car Care Centers, Maaco Collision Repair & Auto Painting, Take 5 Oil Change, and Carstar Collision Repair. Driven Brands delivers a full range of services from routine maintenance and oil changes to collision repair, paint protection, and vehicle customization.

Headquartered in Charlotte, North Carolina, Driven Brands serves both individual consumers and commercial clients across the United States and Canada.