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

Driven Brands (NASDAQ:DRVN) announced its quarterly earnings results 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 firm 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 9.08% and a return on equity of 25.70%. The firm’s quarterly revenue was down 7.9% on a year-over-year basis. During the same period last year, the firm 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 Price Performance

Shares of DRVN stock traded down $1.65 during trading hours on Thursday, reaching $12.96. 1,174,407 shares of the company were exchanged, compared to its average volume of 658,609. Driven Brands has a fifty-two week low of $9.80 and a fifty-two week high of $19.74. The company has a debt-to-equity ratio of 2.08, a current ratio of 1.38 and a quick ratio of 1.25. The stock’s fifty day moving average is $14.02 and its two-hundred day moving average is $13.70. The company has a market cap of $2.14 billion, a price-to-earnings ratio of 11.57 and a beta of 0.95.

Analysts Set New Price Targets

DRVN has been the subject of several recent analyst reports. Canaccord Genuity Group set a $18.00 price objective on shares of Driven Brands in a report on Monday, June 8th. Morgan Stanley reduced their target price on Driven Brands from $17.00 to $16.00 and set an “equal weight” rating on the stock in a report on Wednesday, May 20th. Piper Sandler increased their price target on Driven Brands from $11.00 to $13.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 20th. Weiss Ratings upgraded Driven Brands from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, July 28th. Finally, Benchmark reissued a “buy” rating on shares of Driven Brands in a research note on Tuesday, May 26th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, Driven Brands has an average rating of “Moderate Buy” and an average target price of $17.18.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of DRVN. Orion Porfolio Solutions LLC boosted its stake in Driven Brands by 108.6% in the fourth quarter. Orion Porfolio Solutions LLC now owns 28,341 shares of the company’s stock valued at $420,000 after acquiring an additional 14,757 shares during the last quarter. Natixis Advisors LLC raised its position in shares of Driven Brands by 75.1% during the 4th quarter. Natixis Advisors LLC now owns 22,585 shares of the company’s stock valued at $335,000 after acquiring an additional 9,687 shares during the last quarter. Dark Forest Capital Management LP bought a new stake in shares of Driven Brands during the 3rd quarter valued at $369,000. Mercer Global Advisors Inc. ADV bought a new stake in shares of Driven Brands during the 3rd quarter valued at $296,000. Finally, BNP Paribas Financial Markets lifted its stake in shares of Driven Brands by 89.7% in the 3rd quarter. BNP Paribas Financial Markets now owns 12,516 shares of the company’s stock valued at $202,000 after purchasing an additional 5,917 shares during the period. Institutional investors and hedge funds 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.