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Driven Brands Holdings Inc

Driven Brands Holdings Inc

DRVN
$15.22USD↓-1.68%-0.26 today

MARKET CAP

2.5B

P/E (TTM)

11.4x

FWD P/E

10.3x

DAY RANGE

$15 – $16

52W RANGE

$10
$20

AI Summary

Stalk
StalkMedium

Despite a persistent medium-term advance under Stage 2 dynamics and price holding above rising EMAs and the 50 DMA, extreme overbought readings, minor exhaustion at recent highs, and a shallow pullback into support suggest deferring new entries until demand zones are reaffirmed.

  • ↑Q1 2026 revenue $484.4 M (+8.2% YoY)
  • ↑Take 5 segment SSA growth +4.5%, eyeing 2,500+ locations
  • ↓Collision repair traffic moderating, weighing on diversification
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

Driven Brands Holdings Inc. (NASDAQ: DRVN) is a prominent player in the automotive aftermarket sector, focusing on essential services such as quick oil changes, collision repair, and auto glass solutions. As a diversified service provider, Driven Brands seeks to capture growing consumer demand for vehicle maintenance, with a strategic emphasis on non-discretionary maintenance services. The company operates under a variety of brands, notably Take 5, which has established itself as a leader in quick oil changes, contributing significantly to the overall revenue growth of the company.

Bull says

  • ↑Q1 2026 revenue $484.4 M (+8.2% YoY)
  • ↑Take 5 segment SSA growth +4.5%, eyeing 2,500+ locations
  • ↑Net leverage down to 3.2×, targeting 3.0× by end-2026
  • ↑Free cash flow $30.3 M (+76% YoY) used to cut debt
  • ↑Non-oil services now >25% of Take 5 sales
  • ↑Strong liquidity and high earnings yield support stability

Bear says

  • ↓Collision repair traffic moderating, weighing on diversification
  • ↓Ongoing restatements with three issues under review
  • ↓Q1 adjusted EBITDA margin compressed by higher store expenses
  • ↓High leverage raises interest-rate risk amid weak profitability factors
  • ↓Negative growth and momentum signals cloud future revenue
  • ↓Discretionary spending down in lower-income segments may dent volumes

Investment themes with DRVN

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ATAI · SVIX · SVXY

Earnings Call · Q1 2025 · Mgmt. Guidance

Updated 06-30-2026neutral

Transcript signals

Bull points

  • Driven Brands delivered revenue of $516 million, up 7.1% versus the prior year, supported by 177 net new stores over the past 12 months, and 0.7% same-store sales growth, our 17th consecutive quarter of positive same-store sales growth.
  • Our growth and cash playbook continues to generate predictable, high-quality growth and robust free cash flow. Q1 was a clear demonstration of the power of our platform. Even in uncertain times, customers depend on their vehicles to live their lives and care for their families.
  • Take 5 Oil Change, home of the stay-in-your-car 10-minute oil change, continues to deliver industry-leading growth. Take 5 delivered same-store sales growth of 8% for the quarter, marking its 19th consecutive quarter of positive same-store sales.

Bear points

  • Operating income declined $6.8 million to $61.3 million for Q1. Adjusted EBITDA increased 1.9% to $125.1 million for the quarter. As a reminder, this growth came without the benefit of PHVTRIP, which we divested in August 2024, but the results of which are still included in Q1 2024 results. Adjusted EBITDA margin for Q1 was 24.2%, a decrease of roughly 120 basis points versus Q1 of last year, as sales growth was offset by the aforementioned increases in store expenses in SG&A.
  • Segment revenue declined $4.6 million or 6.1%. Adjusted EBITDA declined $3.2 million to $44.4 million.
  • Adjusted EBITDA margin for Q1 declined approximately 40 basis points from Q1 of 2024 to 61.9% driven by the decline in revenue.
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