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

Driven Brands (NASDAQ:DRVN) posted its quarterly earnings data on Thursday. The company reported $0.29 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.26 by $0.03, Briefing.com reports. The business had revenue of $507.42 million during the quarter, compared to the consensus estimate of $506.33 million. Driven Brands had a net margin of 8.61% and a return on equity of 24.50%. The firm’s quarterly revenue was down 7.9% compared to the same quarter last year. During the same quarter last year, the company posted $0.36 earnings per share.

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 Stock Up 2.9%

Shares of NASDAQ:DRVN opened at $13.33 on Friday. The firm has a fifty day moving average price of $14.01 and a two-hundred day moving average price of $13.70. The company has a market cap of $2.20 billion, a price-to-earnings ratio of 12.82 and a beta of 0.95. The company has a debt-to-equity ratio of 2.08, a current ratio of 1.38 and a quick ratio of 1.25. Driven Brands has a one year low of $9.80 and a one year high of $19.74.

Key Driven Brands News

Here are the key news stories impacting Driven Brands this week:

• Positive Sentiment: Activist investor ADW Capital Management, which owns approximately 4.8% of Driven Brands, urged the board and controlling shareholder Roark Capital to begin an immediate public strategic review. ADW is seeking a potential sale of the entire company or individual business segments, an independent special committee, and an outside financial adviser. The campaign could increase the prospect of a takeover, asset sales, or other actions to unlock shareholder value. ADW Capital letter to Driven Brands
• Neutral Sentiment: Driven Brands reported second-quarter 2026 adjusted earnings of $0.29 per share and revenue of $507.4 million. Results were broadly in line with expectations, with revenue slightly above consensus and earnings beating some estimates, although another estimate placed EPS just below expectations. Driven Brands reports second-quarter 2026 results
• Negative Sentiment: The quarterly update also showed underlying year-over-year pressure: revenue declined 7.9% and EPS fell from $0.36 in the prior-year period to $0.29. The earnings decline and softer sales may limit the stock’s upside unless the strategic-review campaign gains traction. Driven Brands second-quarter earnings analysis

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on DRVN shares. Benchmark restated a “buy” rating on shares of Driven Brands in a research note on Tuesday, May 26th. William Blair downgraded Driven Brands from an “outperform” rating to a “hold” rating in a research note on Wednesday, April 22nd. Robert W. Baird set a $18.00 price objective on Driven Brands and gave the company an “outperform” rating in a report on Wednesday, May 20th. Weiss Ratings raised Driven Brands from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, July 28th. Finally, The Goldman Sachs Group reissued a “neutral” rating and issued a $14.75 target price on shares of Driven Brands in a research report on Wednesday, May 20th. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $16.77.

Institutional Investors Weigh In On Driven Brands

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Boston Partners increased its holdings in shares of Driven Brands by 1,301.0% in the 4th quarter. Boston Partners now owns 3,426,388 shares of the company’s stock worth $50,783,000 after buying an additional 3,181,812 shares during the last quarter. Qube Research & Technologies Ltd bought a new stake in shares of Driven Brands during the 3rd quarter worth $12,599,000. Goldman Sachs Group Inc. lifted its holdings in shares of Driven Brands by 14.8% during the 4th quarter. Goldman Sachs Group Inc. now owns 3,826,160 shares of the company’s stock worth $56,704,000 after acquiring an additional 491,919 shares during the last quarter. Russell Investments Group Ltd. grew its position in Driven Brands by 195.1% in the fourth quarter. Russell Investments Group Ltd. now owns 691,129 shares of the company’s stock worth $10,243,000 after acquiring an additional 456,947 shares in the last quarter. Finally, Millennium Management LLC grew its position in Driven Brands by 51.3% in the fourth quarter. Millennium Management LLC now owns 1,263,464 shares of the company’s stock worth $18,725,000 after acquiring an additional 428,499 shares in the last quarter. Hedge funds and other institutional investors own 77.08% of the company’s stock.

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.