Driven Brands Holdings (DRVN)
NASDAQ:DRVN
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Driven Brands Holdings
(NASDAQ:DRVN)
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Rating:56Neutral
Price Target:
$16.50
▲(33.28% Upside)
Action:UpgradedDate:01/28/26
The score is held back primarily by weak financial performance (declining TTM growth, negative profitability, and high leverage). Technicals and recent updates are more supportive—momentum is positive and earnings commentary/corporate actions emphasize Take 5 strength and debt reduction—but valuation remains constrained by losses (negative P/E).
Positive Factors
High‑margin Take 5 growth
Sustained Take 5 same‑store growth and a 35% adjusted EBITDA margin indicate a scalable, repeatable quick‑service oil change model. High margin, unit economics and continued unit openings support durable cash generation and franchise roll‑out over the next several years.
Negative Factors
High leverage
A debt-to-equity ratio near 3.5 is a persistent constraint on strategic flexibility, increasing interest burden and refinancing risk. High leverage limits investment in growth initiatives and makes the company more vulnerable to economic downturns despite asset sales.
Read all positive and negative factors
Positive Factors
Negative Factors
High‑margin Take 5 growth
Sustained Take 5 same‑store growth and a 35% adjusted EBITDA margin indicate a scalable, repeatable quick‑service oil change model. High margin, unit economics and continued unit openings support durable cash generation and franchise roll‑out over the next several years.
Read all positive factors
Driven Brands Holdings (DRVN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.10B
Dividend YieldN/A
Average Volume (3M)856.10K
Price to Earnings (P/E)10.8
Beta (1Y)0.86
Revenue Growth-6.96%
EPS Growth-3223.14%
CountryUS
Employees10,700
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)0.30
Shares Outstanding164,454,220
10 Day Avg. Volume1,077,421
30 Day Avg. Volume856,097
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)4.28
Price to Sales (P/S)1.11
P/FCF Ratio-55.26
Enterprise Value/Market Cap2.20
Enterprise Value/Revenue2.13
Enterprise Value/Gross Profit4.09
Enterprise Value/Ebitda308.73
Forecast
1Y Price Target
$19.07Price Target Upside54.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)1.36
Revenue Forecast (FY)$2.04B
Driven Brands Holdings Business Overview & Revenue Model
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, v...
How the Company Makes Money
Driven Brands generates revenue through multiple streams, primarily from service fees charged at its franchise and company-owned locations. This includes revenue from automotive maintenance and repair services, collision repair, and detailing serv...
Driven Brands Holdings Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Neutral
Driven Brands reported strong financial results for the third quarter, with significant growth in revenue and the Take 5 Oil Change segment. However, macroeconomic uncertainties and specific segment challenges, particularly in the franchise and collision industries, present potential headwinds as the company navigates the fourth quarter.Positive Updates
Revenue Growth and EBITDA Performance
Driven Brands reported a 7% increase in revenue and achieved an adjusted EBITDA of $136 million. System-wide sales increased by 5% with 167 net new stores added over the past 12 months.
Negative Updates
Macroeconomic Uncertainty
The fourth quarter is experiencing choppiness due to macroeconomic factors such as a government shutdown and potential disruptions in military and social program funding.
Read all updates
Q3-2025 Updates
Positive
Negative
Revenue Growth and EBITDA Performance
Driven Brands reported a 7% increase in revenue and achieved an adjusted EBITDA of $136 million. System-wide sales increased by 5% with 167 net new stores added over the past 12 months.
Read all positive updates
Company Guidance
During the Third Quarter 2025 Earnings Conference Call, Driven Brands provided guidance detailing their financial performance and expectations. The company reported a 7% revenue growth and an adjusted EBITDA of $136 million. System-wide sales increased by 5%, supported by 167 net new stores over the past year, including 39 additions this quarter. Same-store sales rose by 3% for the 19th consecutive quarter. The Take 5 Oil Change segment showed robust performance with a 7% growth in same-store sales and an 18% year-over-year increase in system-wide sales, driving a 15% growth in adjusted EBITDA. Adjusted EBITDA margins for Take 5 expanded to 35%. Driven Brands aims to open approximately 170 new Take 5 locations in 2025. The company reduced its net leverage to 3.8x, with a target of 3x by the end of 2026. Despite a dynamic consumer environment and macroeconomic uncertainties, Driven Brands narrowed their full-year guidance, projecting total revenue of $2.1 billion to $2.12 billion and adjusted EBITDA between $525 million and $535 million.Driven Brands Holdings Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
40
Negative
Cash Flow
50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.17B | 2.34B | 2.30B | 2.03B | 1.47B | 904.20M |
| Gross Profit | 1.13B | 1.23B | 1.03B | 967.51M | 725.01M | 557.24M |
| EBITDA | 14.96M | 27.71M | -506.24M | 329.59M | 223.58M | 164.92M |
| Net Income | -198.04M | -292.50M | -744.96M | 43.19M | 9.63M | -4.20M |
Balance Sheet | ||||||
| Total Assets | 4.15B | 5.26B | 5.91B | 6.50B | 5.86B | 4.66B |
| Cash, Cash Equivalents and Short-Term Investments | 225.98M | 169.95M | 176.52M | 227.11M | 523.41M | 172.61M |
| Total Debt | 2.76B | 4.00B | 4.28B | 3.92B | 3.31B | 2.94B |
| Total Liabilities | 3.36B | 4.65B | 5.00B | 4.85B | 4.21B | 3.55B |
| Stockholders Equity | 793.49M | 607.33M | 906.08M | 1.65B | 1.64B | 1.10B |
Cash Flow | ||||||
| Free Cash Flow | 41.33M | -47.06M | -361.31M | -239.03M | 123.07M | 31.53M |
| Operating Cash Flow | 269.10M | 241.45M | 235.17M | 197.18M | 283.83M | 83.99M |
| Investing Cash Flow | 257.44M | 59.02M | -451.41M | -840.28M | -814.94M | -57.32M |
| Financing Cash Flow | -572.41M | -302.84M | 170.70M | 343.37M | 885.54M | 118.64M |
Driven Brands Holdings Technical Analysis
Neutral
12.38
Price Trends
14.05
Negative
14.35
Negative
15.68
Negative
Market Momentum
-0.67
Negative
56.06
Neutral
86.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DRVN, the sentiment is Neutral. The current price of 12.38 is above the 20-day moving average (MA) of 10.94, below the 50-day MA of 14.05, and below the 200-day MA of 15.68, indicating a neutral trend. The MACD of -0.67 indicates Negative momentum. The RSI at 56.06 is Neutral, neither overbought nor oversold. The STOCH value of 86.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DRVN.
Driven Brands Holdings Risk Analysis
Driven Brands Holdings disclosed 63 risk factors in its most recent earnings report. Driven Brands Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Driven Brands Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $9.74B | 11.20 | 16.04% | 3.14% | 2.25% | 8.92% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $5.94B | 10.30 | 12.08% | 0.64% | 8.56% | 17.84% | |
60 Neutral | $5.94B | 23.09 | 7.39% | ― | 0.12% | 2.78% | |
58 Neutral | $6.72B | 12.12 | 26.70% | ― | 6.06% | -1.71% | |
56 Neutral | $2.10B | 10.84 | -28.42% | ― | -6.96% | -3223.14% | |
56 Neutral | $2.19B | 11.15 | 11.15% | 2.27% | 9.09% | -33.59% |
* Consumer Cyclical Sector Average
DRVN
Driven Brands Holdings
12.76
-5.13
-28.68%
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Driven Brands Holdings Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Driven Brands Completes IMO Sale to Refocus Portfolio
Positive
Jan 27, 2026
On January 27, 2026, Driven Brands Holdings Inc. announced it had completed the sale of IMO, its international car wash business, to Franchise Equity Partners for total aggregate consideration of approximately €411 million. Management descri...
Business Operations and StrategyExecutive/Board Changes
Driven Brands Appoints Timothy Johnson to Board, Audit Committee
Positive
Dec 22, 2025
On December 22, 2025, Driven Brands Holdings announced that Timothy Johnson had been elected as an independent director to its Board of Directors, effective January 1, 2026, and that he will also serve on the Audit Committee. Johnson, a veteran ex...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Driven Brands Sells IMO to Focus on Core Operations
Positive
Dec 2, 2025
Driven Brands Holdings Inc. announced on December 2, 2025, that it has entered into a definitive agreement to sell its international car wash business, IMO, to Franchise Equity Partners for €406 million. This divestiture is part of Driven Br...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.