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1. Company Snapshot

1.a. Company Description

Driven Brands Holdings Inc., together with its subsidiaries, provides automotive services to retail and commercial customers in the United States, Canada, and internationally.The company offers various services, such as paint, collision, glass, vehicle repair, car wash, oil change, and maintenance services.It also distributes automotive parts, including radiators, air conditioning components, and exhaust products to automotive repair shops, auto parts stores, body shops, and other auto repair outlets; windshields and glass accessories through a network of distribution centers; and consumable products, such as oil filters and wiper blades, as well as provides training services to repair and maintenance, and paint and collision shops.


The company sells its products and services under the Take 5 Oil Change, IMO, CARSTAR, ABRA, Fix Auto, Maaco, Meineke, Uniban, 1-800-Radiator & A/C, PH Vitres D'Autos, Spire Supply, and Automotive Training Institute names.As of December 25, 2021, it operated 4,412 company-operated, franchised, and independently-operated stores.Driven Brands Holdings Inc.


was founded in 1972 and is headquartered in Charlotte, North Carolina.

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1.b. Last Insights on DRVN

Driven Brands Holdings Inc.'s recent performance was positively driven by its Q2 earnings beat, with quarterly earnings of $0.36 per share exceeding the Zacks Consensus Estimate of $0.34 per share. Revenue grew 6.2% year-over-year to $551.0 million, with system-wide sales increasing 3.1% to $1.6 billion. The company's appointment of Mo Khalid as Chief Operating Officer and its participation in the Goldman Sachs 32nd Annual Global Retailing Conference may also boost investor confidence. Additionally, the company's growing presence and expansion efforts are noteworthy.

1.c. Company Highlights

2. Driven Brands' Q3 2025 Earnings: Strong Performance Amidst a Challenging Environment

Driven Brands reported a robust third quarter, with revenue growing 7% to an undisclosed figure, and adjusted EBITDA reaching $136 million. The company's same-store sales rose 3%, marking its 19th consecutive quarter of positive same-store sales growth. Earnings per share (EPS) came in at $0.34, beating analyst estimates of $0.29. The strong financial performance was driven by the continued expansion of Take 5 Oil Change, which delivered its 21st consecutive quarter of same-store sales growth, with a 7% increase. System-wide sales for Take 5 grew 18% year-over-year, contributing to the overall growth.

Publication Date: Nov -12

📋 Highlights
  • Revenue & EBITDA Growth: Driven Brands grew revenue by 7% to $1.6B system-wide sales in Q3 2025, with adjusted EBITDA reaching $136M (35% margin), up 40 bps YoY.
  • Take 5 Oil Change Outperformance: Take 5 drove 18% system-wide sales growth YoY, 7% same-store sales rise, and 15% adj. EBITDA growth, with margins expanding to 35%.
  • Store Expansion Momentum: Added 167 net new stores in the past 12 months (39 in Q3), including 150+ annual Take 5 unit growth expected, fueled by 40% franchisees in multiple area development agreements.
  • Same-Store Sales Consistency: Achieved 19th consecutive quarter of positive same-store sales growth (3% in Q3), with Take 5 recording 21st straight quarter of growth (7% YoY).
  • Full-Year Guidance Refinement: Revenue outlook narrowed to $2.1B–$2.12B and adj. EBITDA of $525M–$535M, balancing Q3 strength with cautious Q4 expectations amid macroeconomic uncertainty.

Segment Performance

The Take 5 Oil Change segment was a key driver of growth, with system-wide sales increasing 18% year-over-year and same-store sales growing 7%. The company's Franchise Brands segment also showed improvement, although Maaco continued to face pressure. As Michael Diamond noted, "Maaco is under pressure, but we've seen some improvement in Q3." The company's Collision segment is expected to face headwinds due to the broader consumer environment, but Driven Brands is confident in its ability to outperform the industry.

Outlook and Guidance

Driven Brands narrowed its full-year guidance ranges, expecting revenue of $2.1 billion to $2.12 billion and adjusted EBITDA of $525 million to $535 million. The company expects Take 5 to continue growing, but consolidated same-store sales may be negative due to the impact of Collision on same-store sales growth calculation. The company's guidance suggests a more measured outlook for Q4, reflecting the evolving macro environment.

Valuation and Growth Prospects

With a P/S Ratio of 1.05 and an expected revenue growth rate of 8.0% next year, Driven Brands appears to be reasonably valued. However, the EV/EBITDA ratio of 2985.22 suggests that the market may be pricing in significant growth expectations. Analysts expect the company to continue growing, driven by the expansion of Take 5 Oil Change, with a commitment to adding 150 or more units per year. The company's focus on deleveraging its balance sheet and achieving 3x net leverage by the end of '26 is also expected to support its growth prospects.

3. NewsRoom

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Driven Brands Holdings Inc. (DRVN) Presents at Morgan Stanley Global Consumer & Retail Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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Franchise Equity Partners získavajú IMO Car Wash od Driven Brands

Dec -03

Source: prnewswire.com

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Franchise Equity Partners приобретут IMO Car Wash у Driven Brands

Dec -03

Source: prnewswire.com

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Franchise Equity Partners (FEP) rachète IMO Car Wash à Driven Brands

Dec -02

Source: prnewswire.com

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Franchise Equity Partners to Acquire IMO Car Wash from Driven Brands

Dec -02

Source: prnewswire.com

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Driven Brands Announces Agreement to Divest International Car Wash Business

Dec -02

Source: businesswire.com

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Wall Street Analysts See a 45.86% Upside in Driven Brands Holdings (DRVN): Can the Stock Really Move This High?

Dec -01

Source: zacks.com

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HALPER SADEH LLC ENCOURAGES LIVE NATION ENTERTAINMENT, INC. SHAREHOLDERS TO CONTACT THE FIRM TO DISCUSS THEIR RIGHTS

Nov -30

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.43%)

6. Segments

Maintenance

Expected Growth: 8%

Driven Brands Holdings Inc.'s 8% maintenance growth is driven by increasing vehicle age, rising miles driven, and growing demand for premium maintenance services. Additionally, the company's expanded service offerings, strategic acquisitions, and strong brand recognition contribute to its growth momentum.

Car Wash

Expected Growth: 7%

Driven Brands' Car Wash segment growth is driven by increasing demand for premium car wash services, expansion into new markets, strategic acquisitions, and investments in technology and operational efficiency. Additionally, growing consumer preference for convenience and rising disposable incomes contribute to the 7% growth rate.

Paint, Collision & Glass

Expected Growth: 10%

Driven Brands Holdings Inc.'s 10% growth in Paint, Collision & Glass segments is driven by increasing demand for automotive repair services, expansion of insurance partnerships, and strategic acquisitions. Additionally, investments in digital platforms and process efficiencies have improved customer experience, leading to higher retention rates and revenue growth.

Platform Services

Expected Growth: 11%

Driven Brands' Platform Services segment growth is driven by increasing demand for digital solutions in the automotive industry, expansion of its proprietary technology, and strategic acquisitions. Additionally, the rise of online car buying and servicing, coupled with the need for dealerships to digitize their operations, contributes to the 11% growth.

Corporate and Other

Expected Growth: 6%

Driven Brands' Corporate and Other segment growth is driven by increasing demand for its automotive repair and maintenance services, expansion of its network of locations, and strategic acquisitions. Additionally, the company's focus on digital transformation, cost savings initiatives, and investments in marketing and advertising are contributing to its 6% growth.

7. Detailed Products

Take 5 Oil Change

A quick lube and oil change service that provides fast and convenient oil changes

Meineke Car Care Centers

A full-service car care center that provides maintenance and repair services

MAACO

A collision repair and auto painting service that provides high-quality repairs

CARSTAR

A collision repair service that provides high-quality repairs and auto bodywork

ABRA Auto Body & Glass

A collision repair and auto glass service that provides high-quality repairs

Auto Glass Now

An auto glass repair and replacement service that provides fast and convenient service

8. Driven Brands Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Driven Brands Holdings Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's diversified portfolio of brands and services.

Bargaining Power Of Customers

Driven Brands Holdings Inc. has a large customer base, but the bargaining power of customers is limited due to the company's strong brand recognition and customer loyalty programs.

Bargaining Power Of Suppliers

Driven Brands Holdings Inc. has a diverse supplier base, but the bargaining power of suppliers is moderate due to the company's dependence on a few key suppliers for certain materials and services.

Threat Of New Entrants

The automotive aftermarket industry is highly competitive, and the threat of new entrants is high due to low barriers to entry and the potential for disruption from new technologies and business models.

Intensity Of Rivalry

The automotive aftermarket industry is highly competitive, and the intensity of rivalry is high due to the presence of many established players and the need for continuous innovation and differentiation.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 76.82%
Debt Cost 4.35%
Equity Weight 23.18%
Equity Cost 9.92%
WACC 5.64%
Leverage 331.49%

11. Quality Control: Driven Brands Holdings Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Kingsway Financial Services

A-Score: 4.6/10

Value: 4.6

Growth: 4.2

Quality: 3.7

Yield: 0.0

Momentum: 9.5

Volatility: 5.7

1-Year Total Return ->

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Driven Brands

A-Score: 4.5/10

Value: 6.0

Growth: 5.3

Quality: 3.0

Yield: 0.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Cars

A-Score: 4.3/10

Value: 7.2

Growth: 5.4

Quality: 6.3

Yield: 0.0

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

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Vroom

A-Score: 3.6/10

Value: 8.2

Growth: 4.6

Quality: 4.0

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

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America's Car-Mart

A-Score: 3.6/10

Value: 8.7

Growth: 3.6

Quality: 5.4

Yield: 0.0

Momentum: 1.5

Volatility: 2.7

1-Year Total Return ->

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RumbleON

A-Score: 3.3/10

Value: 8.0

Growth: 5.2

Quality: 2.9

Yield: 0.0

Momentum: 3.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.0$

Current Price

15$

Potential

-0.00%

Expected Cash-Flows