Driven Brands Holdings, Inc. (DRVN)
NASDAQ:DRVN
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Driven Brands Holdings
(NASDAQ:DRVN)
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Rating:51Neutral
Price Target:
$12.50
▼(-5.37% Downside)
Action:Reiterated
Date:06/18/26
The score is driven primarily by an improving operating and cash-flow profile, but it is held back by a still debt-heavy balance sheet and elevated reporting/restatement risk (including Nasdaq noncompliance). Technicals also remain weak with the stock trading below major moving averages, while valuation (P/E ~10.9) is a relative support.
Positive Factors
High‑margin Franchise Economics
The franchise business delivers very high adjusted EBITDA margins and predictable royalty/fee cash flows, making it a durable cash generator. High margins reduce capital intensity and support steady free cash flow and reinvestment even if company‑operated retail fluctuates.
Negative Factors
Elevated Leverage Remains a Constraint
Debt levels remain materially elevated versus equity, leaving the company exposed to higher financing costs and cyclical downturns. Persistent leverage limits strategic optionality, increases refinancing risk, and makes sustained investment or M&A more costly over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High‑margin Franchise Economics
The franchise business delivers very high adjusted EBITDA margins and predictable royalty/fee cash flows, making it a durable cash generator. High margins reduce capital intensity and support steady free cash flow and reinvestment even if company‑operated retail fluctuates.
Read all positive factors
Driven Brands Holdings (DRVN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.05B
Dividend YieldN/A
Average Volume (3M)1.48M
Price to Earnings (P/E)11.6
Beta (1Y)0.77
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. Volume1,123,139
30 Day Avg. Volume1,479,202
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 Cap2.02
Enterprise Value/Revenue2.26
Enterprise Value/Gross Profit5.25
Enterprise Value/Ebitda11.36
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:Jun 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presented solid operational and financial progress: healthy revenue growth, strong Take 5 momentum, improving leverage and free cash flow, and disciplined capital allocation with reiterated full‑year guidance. Key near‑term headwinds are elevated non‑recurring restatement and remediation costs, expected Q2 moderation in sales (concentrated among newer and lower‑income customers), and ongoing internal control remediation. Most challenges are presented as non‑recurring or manageable while core businesses (Take 5, Franchise margins, Auto Glass Now) show resilient growth and profitability.Positive Updates
Top-line Growth and Revenue
Total revenue of $484.4M in Q1, up 8.2% year-over-year; system-wide sales grew ~6% (company reported 6% / CFO stated 5.8%).
Negative Updates
Non-Recurring Restatement Costs
Q1 included $9.1M of non‑recurring restatement costs; company expects $35M–$45M total restatement costs for 2026 and anticipates >$15M in Q2 alone, pressuring near‑term margins.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-line Growth and Revenue
Total revenue of $484.4M in Q1, up 8.2% year-over-year; system-wide sales grew ~6% (company reported 6% / CFO stated 5.8%).
Read all positive updates
Company Guidance
Driven Brands reiterated full‑year 2026 guidance: revenue $1.95–$2.05 billion; adjusted EBITDA $430–$460 million (range includes $35–$45 million of non‑recurring restatement costs that will not be added back); adjusted diluted EPS $1.15–$1.25; same‑store sales flat to +2%; net new units 160–190; net capital expenditures ~6.5% of revenue; free cash flow $125–$145 million; and a target to reach 3.0x net leverage by year‑end (Q1 ended at 3.2x). For Q2 management expects Take 5 same‑store sales in the mid‑3% range (roughly 10% on a two‑year stack), restatement costs to exceed $15 million, and adjusted EBITDA margins to be pressured versus Q1’s 21.5%.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
Positive
13.21
Price Trends
13.21
Negative
13.25
Negative
14.31
Negative
Market Momentum
-0.14
Positive
50.59
Neutral
18.91
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DRVN, the sentiment is Positive. The current price of 13.21 is below the 20-day moving average (MA) of 13.26, below the 50-day MA of 13.21, and below the 200-day MA of 14.31, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 50.59 is Neutral, neither overbought nor oversold. The STOCH value of 18.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DRVN.
Driven Brands Holdings Risk Analysis
Driven Brands Holdings disclosed 67 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 | $11.62B | 13.69 | 16.41% | 3.14% | 1.24% | -5.59% | |
66 Neutral | $6.78B | 10.66 | 10.63% | 0.64% | 2.37% | -10.19% | |
63 Neutral | $6.43B | 10.46 | 28.44% | ― | 1.94% | 9.88% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $2.57B | 25.97 | 10.50% | 2.27% | 4.82% | -55.13% | |
60 Neutral | $7.36B | 31.55 | 3.67% | ― | -3.30% | -58.01% | |
51 Neutral | $2.05B | 11.57 | 24.44% | ― | -11.05% | ― |
* Consumer Cyclical Sector Average
DRVN
Driven Brands Holdings
13.54
-3.70
-21.46%
AN
AutoNation
192.05
-7.98
-3.99%
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PAG
Penske Automotive Group
183.84
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SAH
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82.71
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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 ...
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.