Driven Brands Holdings, Inc. (DRVN)
NASDAQ:DRVN
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Driven Brands Holdings
(NASDAQ:DRVN)
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Rating:52Neutral
Price Target:
$13.50
▲(2.20% Upside)
Action:Reiterated
Date:06/11/26
The score is held back primarily by balance-sheet leverage and heightened reporting risk from the restatement and Nasdaq filing noncompliance. Offsetting these are the TTM earnings/cash flow recovery and neutral-to-slightly positive technicals, with valuation appearing reasonable at a mid-teens P/E.
Positive Factors
High‑margin franchise segment
A franchise-heavy segment with a 62.7% adjusted EBITDA margin is a structurally durable cash engine. High margins on recurring franchise royalties and lower capex exposure support stable free cash generation across cycles, funding growth and deleveraging without reliance on volatile retail margins.
Negative Factors
Elevated leverage
A debt‑to‑equity ratio near 3.5x leaves the company exposed to higher financing costs and weaker shock absorption during downturns. Even with paydowns, elevated leverage constrains strategic flexibility, increases covenant and refinancing risk, and amplifies earnings sensitivity to modest cash flow swings.
Read all positive and negative factors
Positive Factors
Negative Factors
High‑margin franchise segment
A franchise-heavy segment with a 62.7% adjusted EBITDA margin is a structurally durable cash engine. High margins on recurring franchise royalties and lower capex exposure support stable free cash generation across cycles, funding growth and deleveraging without reliance on volatile retail margins.
Read all positive factors
Driven Brands Holdings (DRVN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.22B
Dividend YieldN/A
Average Volume (3M)1.59M
Price to Earnings (P/E)11.6
Beta (1Y)0.78
Revenue Growth-11.05%
EPS GrowthN/A
CountryUS
Employees10,700
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)1.14
Shares Outstanding164,955,960
10 Day Avg. Volume1,146,359
30 Day Avg. Volume1,587,371
Financial Highlights & Ratios
PEG Ratio-0.12
Price to Book (P/B)3.15
Price to Sales (P/S)1.30
P/FCF Ratio22.39
Enterprise Value/Market Cap2.19
Enterprise Value/Revenue2.64
Enterprise Value/Gross Profit6.14
Enterprise Value/Ebitda17.74
Forecast
1Y Price Target
$16.67Price Target Upside26.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)1.22
Revenue Forecast (FY)$2.00B
Driven Brands Holdings Business Overview & Revenue Model
Company Description
Driven Brands Holdings Inc., operating through its various subsidiaries, offers a comprehensive suite of automotive services to both individual consumers and business clients across the United States, Canada, and international markets. Their core ...
How the Company Makes Money
Driven Brands makes money primarily through a mix of franchising and company-operated retail operations across its automotive service brands. Key revenue streams include: (1) Retail sales from company-operated locations, where revenue is generated...
Driven Brands Holdings Earnings Call Summary
Earnings Call Date:May 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call presents a mixed but ultimately constructive picture: operational performance—led by Take 5 growth, stronger Auto Glass Now margins, improved free cash flow and significant deleveraging—demonstrates underlying business strength and a clearer strategic focus. However, a comprehensive restatement, material historical accounting errors, and near-term nonrecurring costs are material negatives that add execution and reporting risk in the short term. Management has outlined remediation steps (strengthened finance leadership, Oracle implementation, process improvements) and provided conservative 2026 guidance that explicitly incorporates restatement-related costs.Positive Updates
Revenue Growth for Full Year 2025
Full year revenue grew 6.3% to approximately $1.9 billion in 2025.
Negative Updates
Comprehensive Financial Restatement
Management identified material errors across prior periods (lease accounting, Auto Glass Now cash accounting, expense mischaracterization, accounts payable and accounts receivable issues) leading to restatements for prior years.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth for Full Year 2025
Full year revenue grew 6.3% to approximately $1.9 billion in 2025.
Read all positive updates
Company Guidance
Driven Brands guided fiscal 2026 revenue of $1.95–$2.05 billion and adjusted EBITDA of $430–$460 million (which includes $35–$45 million of nonrecurring restatement-related costs and excludes International Car Wash), adjusted diluted EPS of $1.15–$1.25, same‑store sales flat to +2%, net new unit growth of 160–190 stores, net capital expenditures of ~6.5% of revenue (about 60% of net CapEx to support Take 5 company‑operated growth), interest expense of roughly $90 million, an effective tax rate of 26–27%, and expected free cash flow of $125–$145 million while targeting net leverage of 3.0x by year‑end (pro forma net leverage ~3.3x after January paydowns); management also said first‑half EBITDA will be less than 50% of full‑year EBITDA and provided preliminary Q1 ranges of consolidated same‑store sales 1.9–2.1%, Take 5 SSS 4.3–4.5%, revenue $475–$485 million and Q1 adjusted EBITDA moderately lower year‑over‑year due to restatement costs.Driven Brands Holdings Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
34
Negative
Cash Flow
55
Neutral
| Breakdown | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.86B | 2.34B | 2.30B | 2.03B | 1.47B |
| Gross Profit | 837.39M | 1.23B | 1.03B | 967.51M | 725.01M |
| EBITDA | 303.64M | 27.71M | -506.24M | 329.59M | 223.58M |
| Net Income | 140.16M | -292.50M | -744.96M | 43.19M | 9.63M |
Balance Sheet | |||||
| Total Assets | 4.16B | 5.26B | 5.91B | 6.50B | 5.86B |
| Cash, Cash Equivalents and Short-Term Investments | 102.94M | 169.95M | 176.52M | 227.11M | 523.41M |
| Total Debt | 2.66B | 4.00B | 4.28B | 3.92B | 3.31B |
| Total Liabilities | 3.39B | 4.65B | 5.00B | 4.85B | 4.21B |
| Stockholders Equity | 767.20M | 607.33M | 906.08M | 1.65B | 1.64B |
Cash Flow | |||||
| Free Cash Flow | 107.77M | -47.06M | -367.91M | -239.03M | 123.07M |
| Operating Cash Flow | 330.54M | 241.45M | 228.57M | 197.18M | 283.83M |
| Investing Cash Flow | 232.73M | 59.02M | -451.41M | -840.28M | -814.94M |
| Financing Cash Flow | -564.97M | -302.84M | 170.29M | 343.37M | 885.54M |
Driven Brands Holdings Technical Analysis
Neutral
13.21
Price Trends
13.16
Positive
13.45
Negative
14.52
Negative
Market Momentum
0.07
Positive
50.92
Neutral
51.46
Neutral
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 13.21 is below the 20-day moving average (MA) of 13.48, above the 50-day MA of 13.16, and below the 200-day MA of 14.52, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 51.46 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $11.90B | 12.86 | 16.41% | 3.14% | 1.24% | -5.59% | |
66 Neutral | $7.15B | 10.32 | 10.61% | 0.64% | 2.37% | -10.19% | |
63 Neutral | $6.41B | 9.79 | 28.44% | ― | 1.94% | 9.88% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $2.67B | 26.11 | 10.50% | 2.27% | 4.82% | -55.13% | |
59 Neutral | $7.27B | 30.52 | 4.05% | ― | -1.64% | -50.32% | |
52 Neutral | $2.22B | 11.63 | 19.02% | ― | -11.05% | ― |
* Consumer Cyclical Sector Average
DRVN
Driven Brands Holdings
13.43
-3.62
-21.23%
AN
AutoNation
191.53
-1.51
-0.78%
KMX
CarMax
51.26
-14.59
-22.16%
LAD
Lithia Motors
313.38
-15.84
-4.81%
PAG
Penske Automotive Group
180.96
14.11
8.45%
SAH
Sonic Automotive
84.61
8.83
11.65%
Driven Brands Holdings Corporate Events
Financial DisclosuresRegulatory Filings and Compliance
Driven Brands Faces Nasdaq Noncompliance Over Delayed 10-Q
Negative
Jun 5, 2026
Driven Brands Holdings Inc. disclosed that on June 1, 2026 it received a notice from Nasdaq stating the company is not in compliance with Nasdaq Listing Rule 5250(c)(1) because it has not yet filed its Form 10-Q for the quarter ended March 28, 202...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Driven Brands Secures Waiver Extending Key Reporting Deadlines
Neutral
Apr 23, 2026
On April 22, 2026, indirect subsidiaries of Driven Brands Holdings obtained a waiver extending multiple financial reporting deadlines tied to its whole-business securitization structure. The waiver pushes delivery of the company’s fiscal 202...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Driven Brands Faces Ongoing Filing Delays and Nasdaq Compliance Risks
Negative
Apr 21, 2026
Driven Brands Holdings reported preliminary, unaudited results on April 21, 2026 for the fourth quarter and fiscal year 2025 and for the first quarter of 2026, highlighting modest same-store sales gains at its Take 5 brand, revenue of about $1.85 ...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Driven Brands amends indenture amid financial restatement focus
Neutral
Mar 11, 2026
On March 11, 2026, Driven Brands Funding, LLC and Driven Brands Canada Funding Corporation amended their Second Amended and Restated Base Indenture with Citibank, N.A. as trustee to extend certain deliverable deadlines and clarify requirements tri...
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.