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

Driven Brands (NASDAQ:DRVN) released its quarterly earnings data on Thursday. The company reported $0.29 earnings per share for the quarter, beating the consensus estimate of $0.26 by $0.03, Briefing.com reports. The company had revenue of $507.42 million during the quarter, compared to analyst estimates of $506.33 million. Driven Brands had a net margin of 9.08% and a return on equity of 25.70%. Driven Brands’s revenue for the quarter was down 7.9% compared to the same quarter last year. During the same quarter in the previous year, the business 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 Stock Performance

NASDAQ DRVN opened at $12.96 on Friday. Driven Brands has a 52-week low of $9.80 and a 52-week high of $19.74. The company has a 50-day simple moving average of $14.02 and a 200 day simple moving average of $13.70. The company has a market capitalization of $2.14 billion, a PE ratio of 11.57 and a beta of 0.95. The company has a debt-to-equity ratio of 2.08, a quick ratio of 1.25 and a current ratio of 1.38.

Institutional Trading of Driven Brands

A number of large investors have recently bought and sold shares of DRVN. EverSource Wealth Advisors LLC boosted its position in Driven Brands by 744.6% during the second quarter. EverSource Wealth Advisors LLC now owns 2,103 shares of the company’s stock worth $37,000 after purchasing an additional 1,854 shares during the period. Osaic Holdings Inc. lifted its position in Driven Brands by 82.1% during the second quarter. Osaic Holdings Inc. now owns 2,087 shares of the company’s stock valued at $37,000 after purchasing an additional 941 shares during the last quarter. Federated Hermes Inc. lifted its holdings in shares of Driven Brands by 30.5% during the 4th quarter. Federated Hermes Inc. now owns 8,727 shares of the company’s stock worth $129,000 after acquiring an additional 2,040 shares during the last quarter. Tower Research Capital LLC TRC increased its position in shares of Driven Brands by 709.3% during the 2nd quarter. Tower Research Capital LLC TRC now owns 8,490 shares of the company’s stock valued at $149,000 after purchasing an additional 7,441 shares during the last quarter. Finally, Amundi bought a new position in Driven Brands during the fourth quarter valued at approximately $169,000. 77.08% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on DRVN shares. Morgan Stanley cut their target price on shares of Driven Brands from $17.00 to $16.00 and set an “equal weight” rating on the stock in a research note on Wednesday, May 20th. Robert W. Baird set a $18.00 price target on shares of Driven Brands and gave the company an “outperform” rating in a research note on Wednesday, May 20th. Wall Street Zen upgraded shares of Driven Brands from a “hold” rating to a “buy” rating in a report on Saturday, July 25th. BTIG Research reissued a “buy” rating and set a $17.00 price objective on shares of Driven Brands in a research report on Friday, June 12th. Finally, BMO Capital Markets decreased their target price on Driven Brands from $18.00 to $14.00 and set a “market perform” rating for the company in a research report on Thursday, May 21st. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, Driven Brands has a consensus rating of “Moderate Buy” and an average target price of $17.18.

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.