--17th consecutive quarter of same store sales growth--

--Take 5 Oil Change delivers revenue growth of 15% and same store sales growth of 8%--

--Completed divestiture of U.S. car wash business in April 2025--

--Reaffirms fiscal year 2025 outlook--

CHARLOTTE, N.C., May 06, 2025--(BUSINESS WIRE)--Driven Brands Holdings Inc. (NASDAQ: DRVN) ("Driven Brands" or the "Company") today reported financial results for the first quarter ending March 29, 2025.

For the first quarter, Driven Brands delivered revenue of $516.2 million, an increase of 7% versus the prior year. System-wide sales increased 2% to $1.5 billion, driven by a 1% increase in same store sales and 4% increase in store count versus the prior year.

Net income was $6 million or $0.04 per diluted share versus net income of $4 million or $0.02 per diluted share in the prior year. Adjusted Net Income1 was $44 million or $0.27 per diluted share versus $40 million or $0.25 per diluted share in the prior year. Adjusted EBITDA1 was $125 million, up 2% versus the prior year.

"We delivered another strong quarter, led by the sustained momentum of our Take 5 Oil Change business, which achieved its 19th consecutive quarter of same store sales growth. Additionally, we successfully completed the sale of our U.S. car wash business in early April, primarily using the proceeds to reduce our debt. While the economic environment is fluid, our diversified portfolio, anchored by non-discretionary services, demonstrates resilience and positions us well for the long term. We are confident in our ability to deliver on our 2025 outlook and remain committed to paying down debt as we grow the business," said Jonathan Fitzpatrick, President and Chief Executive Officer.

"I would like to congratulate Danny Rivera as he steps into the role of CEO. I am pleased to remain on the board as Chair and look forward to supporting Danny in his well-deserved new role and the continued growth of Driven Brands," Fitzpatrick concluded.

First Quarter 2025 Key Performance Indicators by Segment

System-wide Sales (in millions) Store Count Same Store Sales2 Revenue

(in millions) Adjusted EBITDA

(in millions) Take 5 $ 387.5 1,203 8.0 % $ 293.4 $ 100.9  Franchise Brands  1,033.4 2,660 (2.9 )%  71.7  44.4  Car Wash  66.6 718 26.2 %  68.0  24.4  Corporate and Other  59.3 216 N/A   83.0  (44.6 ) Total $ 1,546.8 4,797 0.7 %  516.2  125.1

Capital and Liquidity

The Company ended the first quarter with total liquidity of $640.8 million consisting of $152.0 million in cash and cash equivalents and $488.7 million of undrawn capacity on its variable funding securitization senior notes and revolving credit facility. This did not include the additional $135.0 million Series 2022 Class A-1 Notes that expand the Company’s variable funding note borrowing capacity if the Company elects to exercise them, assuming certain conditions continue to be met.

Story Continues

Fiscal Year 2025 Outlook

The Company reaffirms its financial outlook for fiscal year 2025 ending December 27, 2025.

2025 Outlook Revenue ~$2.05 - $2.15 billion Adjusted EBITDA1 ~$520 - $550 million Adjusted Diluted EPS1 ~$1.15 - $1.25

The Company also expects:

Same store sales growth of 1% - 3% Net store growth of approximately 175 - 200

Note: 2025 Outlook excludes the impact of any potential M&A and divestitures other than the completed sale of the U.S. car wash business.

1 Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP financial measures. See "Reconciliation of Non-GAAP Financial Measures" for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures. Forward-looking estimates of Adjusted EBITDA and Adjusted EPS are made in a manner consistent with the relevant definitions and assumptions noted herein.

2 The Company does not provide same store sales results for Corporate and Other as it is a non-reportable segment. The same store sales results for any applicable businesses within Corporate and Other are included in the Company’s overall same store sales results.

Conference Call

Driven Brands will host a conference call to discuss first quarter 2025 results today, Tuesday, May 6, at 8:30 a.m. ET. The call will be available by webcast and can be accessed by visiting Driven Brands’ Investor Relations website at investors.drivenbrands.com. A replay of the call will be available for at least three months.

About Driven Brands

Driven Brands™, headquartered in Charlotte, NC, is the largest automotive services company in North America, providing a range of consumer and commercial automotive services, including paint, collision, glass, vehicle repair, oil change, maintenance and car wash. Driven Brands is the parent company of some of North America’s leading automotive service businesses including Take 5 Oil Change®, Meineke Car Care Centers®, Maaco®, 1-800-Radiator & A/C®, Auto Glass Now®, and CARSTAR®. Driven Brands has approximately 4,800 locations across the United States and 13 other countries, and services tens of millions of vehicles annually. Driven Brands’ network generates approximately $2.0 billion in annual revenue from approximately $6.1 billion in system-wide sales.

Disclosure Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "plan," "possible," "potential," "predict," "project," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this Press Release, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, trends, plans, objectives of management, impact of accounting standards and outlook, impairments, and expected market growth are forward-looking statements. In particular, forward-looking statements include, among other things, statements relating to: (i) our ability to realize the value of the note received as partial payment in the sale of our U.S. Car Wash business; (ii) potential post-closing obligations and liabilities relating to the sale of our U.S. Car Wash business; (iii) the current geopolitical environment, including the impact, both direct and indirect, of government actions, such as proposed and enacted tariffs; (iv) our strategy, outlook, and growth prospects; (v) our operational and financial targets and dividend policy; (vi) general economic trends and trends in the industry and markets; (vii) the risks and costs associated with the integration of, and or ability to integrate, our stores and business units successfully; (viii) the proper application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates, and judgments; and (ix) the competitive environment in which we operate. Forward-looking statements are not based on historical facts, but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions, and involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 28, 2024 as well as in our other filings with the Securities and Exchange Commission, which are available on its website at www.sec.gov. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)  Three Months Ended (in thousands, except per share amounts) March 29, 2025  March 30, 2024 Net revenue:  Franchise royalties and fees $ 44,710   $ 45,045  Company-operated store sales  314,131    284,229  Independently-operated store sales  66,640    53,047  Advertising contributions  25,325    24,070  Supply and other revenue  65,357    75,601  Total net revenue  516,163    481,992  Operating Expenses:  Company-operated store expenses  181,866    169,342  Independently-operated store expenses  36,475    29,355  Advertising expenses  25,325    24,070  Supply and other expenses  35,028    36,216  Selling, general, and administrative expenses  143,052    123,811  Depreciation and amortization  33,152    31,116  Total operating expenses  454,898    413,910  Operating income  61,265    68,082  Other expenses, net:  Interest expense, net  36,534    43,751  Foreign currency transaction loss, net  210    4,321  Other expenses, net  36,744    48,072  Income before taxes from continuing operations  24,521    20,010  Income tax expense  7,031    8,458  Net income from continuing operations  17,490   $ 11,552  Net loss from discontinued operations, net of tax  (11,984 )  $ (7,291 ) Net income $ 5,506   $ 4,261   Basic earnings (loss) per share:  Continuing Operations $ 0.11   $ 0.07  Discontinued Operations  (0.07 )   (0.04 ) Net basic earnings per share $ 0.04   $ 0.03   Diluted earnings (loss) per share:  Continuing Operations $ 0.11   $ 0.07  Discontinued Operations  (0.07 )   (0.05 ) Net diluted earnings per share $ 0.04   $ 0.02   Weighted average shares outstanding  Basic  160,568    159,631  Diluted  161,818    160,604

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)  (in thousands, except share and per share amounts) March 29, 2025  December 28, 2024 Assets  Current assets:  Cash and cash equivalents $ 152,042   $ 149,573  Restricted cash  332    358  Accounts and notes receivable, net  201,217    177,654  Inventory  63,829    66,539  Prepaid and other assets  47,771    37,841  Income tax receivable  12,917    14,294  Advertising fund assets, restricted  55,140    49,716  Assets held for sale  70,691    77,616  Current assets of discontinued operations  67,442    83,847  Total current assets  671,381    657,438  Other assets  127,278    125,422  Property and equipment, net  734,511    711,505  Operating lease right-of-use assets  535,242    524,442  Deferred commissions  7,315    7,246  Intangibles, net  662,417    665,896  Goodwill  1,413,298    1,403,056  Deferred tax assets  8,363    8,206  Non-current assets of discontinued operations  1,141,846    1,158,576  Total assets $ 5,301,651   $ 5,261,787  Liabilities and shareholders' equity  Current liabilities:  Accounts payable $ 110,377   $ 85,843  Accrued expenses and other liabilities  201,955    193,638  Income tax payable  1,518    6,860  Current portion of long-term debt  32,234    32,232  Income tax receivable liability  22,674    22,676  Advertising fund liabilities  24,058    22,030  Current liabilities of discontinued operations  64,490    70,616  Total current liabilities  457,306    433,895  Long-term debt  2,616,272    2,656,308  Deferred tax liabilities  94,165    87,485  Operating lease liabilities  505,980    491,282  Income tax receivable liability  110,907    110,935  Deferred revenue  31,060    31,314  Long-term accrued expenses and other liabilities  19,867    20,122  Non-current liabilities of discontinued operations  822,851    823,112  Total liabilities  4,658,408    4,654,453  Preferred Stock $0.01 par value; 100,000,000 shares authorized; none issued or outstanding  —    —  Common stock, $0.01 par value, 900,000,000 shares authorized: and 164,274,617 and 163,842,248 shares outstanding; respectively  1,643    1,638  Additional paid-in capital  1,709,580    1,699,851  Accumulated deficit  (997,077 )   (1,002,583 ) Accumulated other comprehensive loss  (70,903 )   (91,572 ) Total shareholders' equity  643,243    607,334  Total liabilities and shareholders' equity $ 5,301,651   $ 5,261,787

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)  Three Months Ended (in thousands) March 29, 2025  March 30, 2024 Net income $ 5,506   $ 4,261  Adjustments to reconcile net income to net cash provided by operating activities:  Depreciation and amortization  35,355    43,229  Share-based compensation expense  11,788    11,861  (Gain) loss on foreign denominated transactions  (132 )   7,574  Loss (gain) on foreign currency derivatives  342    (3,253 ) Loss (gain) on sale and disposal of businesses, fixed assets, and sale leaseback transactions  12,933    5,434  Reclassification of interest rate hedge to income  (514 )   (519 ) Bad debt expense  4,510    2,070  Asset impairment charges and lease terminations  5,813    979  Amortization of deferred financing costs and bond discounts  3,089    1,954  Amortization of cloud computing  1,881    1,345  Provision (benefit) for deferred income taxes  4,540    (2,807 ) Other, net  (6,985 )   10,669  Changes in operating assets and liabilities, net of acquisitions:  Accounts and notes receivable, net  (26,449 )   (17,351 ) Inventory  3,310    (1,005 ) Prepaid and other assets  (5,079 )   (4,270 ) Advertising fund assets and liabilities, restricted  (4,091 )   7,650  Other assets  (2,584 )   (33,300 ) Deferred commissions  69    (331 ) Deferred revenue  (255 )   1,659  Accounts payable  20,847    14,165  Accrued expenses and other liabilities  18,122    6,293  Income tax receivable  (6,885 )   3,976  Cash provided by operating activities  75,131    60,283  Cash flows from investing activities:  Capital expenditures  (56,227 )   (89,483 ) Cash used in business acquisitions, net of cash acquired  —    (2,024 ) Proceeds from sale leaseback transactions  8,696    4,550  Proceeds from sale or disposal of businesses and fixed assets  3,519    52,677  Cash used in investing activities  (44,012 )   (34,280 ) Cash flows from financing activities:  Payment of debt extinguishment and issuance costs  (1,414 )   —  Repayment of long-term debt  (32,418 )   (7,616 ) Proceeds from revolving lines of credit and short-term debt  33,000    46,000  Repayment of revolving lines of credit and short-term debt  (43,000 )   (46,000 ) Repayment of principal portion of finance lease liability  (1,353 )   (886 ) Payment of Tax Receivable Agreement  —    (24,718 ) Tax obligations for share-based compensation  (2,582 )   —  Cash used in financing activities  (47,767 )   (33,220 ) Effect of exchange rate changes on cash  1,549    1,133  Net change in cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted  (15,099 )   (6,084 ) Cash and cash equivalents, beginning of period  169,954    176,522  Cash included in advertising fund assets, restricted, beginning of period  38,930    38,537  Restricted cash, beginning of period  358    657  Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, beginning of period  209,242    215,716  Cash and cash equivalents, end of period  155,584    165,513  Cash included in advertising fund assets, restricted, end of period  38,227    43,462  Restricted cash, end of period  332    657  Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, end of period $ 194,143   $ 209,632

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The Company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.

Non-GAAP Financial Measures in Outlook

Driven Brands includes Adjusted Earnings Before Interest, Tax, Depreciation and Amortization ("Adjusted EBITDA") and Adjusted Earnings per Share ("Adjusted EPS") in the Company’s Fiscal Year 2025 Outlook. Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures and have not been reconciled to the most comparable GAAP financial measures because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide an outlook for the comparable GAAP measures. Forward-looking estimates of Adjusted EBITDA and Adjusted EPS are made in a manner consistent with the relevant definitions and assumptions noted herein and in our filings with the SEC.

Adjusted Net Income and Adjusted Earnings Per Share

Adjusted Net Income and Adjusted EPS are considered non-GAAP financial measures under the SEC’s rules because they exclude certain amounts included in the net income attributable to Driven Brands common stockholders and diluted earnings per share attributable to Driven Brands common stockholders calculated in accordance with GAAP. Management believes that Adjusted Net Income and Adjusted EPS are meaningful measures to share with investors because they facilitate comparison of the current period performance with that of the comparable prior period. In addition, Adjusted Net Income and Adjusted EPS afford investors a view of what management considers to be Driven Brands’ core earnings performance as well as the ability to make a more informed assessment of such earnings performance with that of the prior period.

The tables below reflect the calculation of Adjusted Net Income and Adjusted Earnings Per Share for the three months ended March 29, 2025, compared to the three months ended March 30, 2024.

Net Income to Adjusted Net Income and Adjusted Earnings Per Share (Unaudited)

Three Months Ended (in thousands, except per share data) March 29, 2025  March 30, 2024 Net income from continuing operations $ 17,490   $ 11,552  Adjustments:  Acquisition related costs(a)  15    1,701  Non-core items and project costs, net(b)  5,244    4,711  Cloud computing amortization(c)  1,881    1,345  Share-based compensation expense(d)  11,788    11,861  Foreign currency transaction loss, net(e)  210    4,321  Asset sale leaseback (gain) loss, net, impairment and closed store expenses(f)  11,753    3,976  Amortization related to acquired intangible assets(g)  4,659    6,415  Valuation allowance for deferred tax asset(h)  299    1,134  Adjusted net income before tax impact of adjustments $ 53,339   $ 47,016  Tax impact of adjustments(i)  (9,160 )   (7,004 ) Adjusted net income from continuing operations $ 44,179   $ 40,012   Basic earnings per share from continuing operations $ 0.11   $ 0.07  Diluted earnings per share from continuing operations $ 0.11   $ 0.07   Adjusted basic earnings per share from continuing operations $ 0.27   $ 0.25  Adjusted diluted earnings per share from continuing operations $ 0.27   $ 0.25   Weighted average shares outstanding  Basic  160,568    159,631  Diluted  161,818    160,604

(1)  Adjusted Earnings Per Share is calculated under the two-class method. Under the two-class method, adjusted earnings per share is calculated using adjusted net income attributable to common shares, which is derived by reducing adjusted net income by the amount attributable to participating securities. Adjusted Net Income attributable to participating securities used in the basic and diluted earnings per share calculations was less than $1 million for the three months ended March 29, 2025 and March 30, 2024.

Adjusted EBITDA

Adjusted EBITDA is considered a non-GAAP financial measure under the Securities and Exchange Commission’s ("SEC") rules because it excludes certain amounts included in net income calculated in accordance with GAAP. Management believes that Adjusted EBITDA is a meaningful measure to share with investors because it facilitates comparison of the current period performance with that of the comparable prior period. In addition, Adjusted EBITDA affords investors a view of what management considers to be Driven Brand’s core operating performance as well as the ability to make a more informed assessment of such operating performance as compared with that of the prior period.

Please see the company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024, filed with the SEC on February 28, 2024, for additional information on Adjusted EBITDA. The tables below reflect the calculation of Adjusted EBITDA for the three months ended March 29, 2025, compared to the three months ended March 30, 2024.

Net Income to Adjusted EBITDA Reconciliation (Unaudited)

Three Months Ended (in thousands) March 29, 2025  March 30, 2024 Net income from continuing operations $ 17,490  $ 11,552 Income tax expense  7,031   8,458 Interest expense, net  36,534   43,751 Depreciation and amortization  33,152   31,116 EBITDA  94,207   94,877 Acquisition related costs(a)  15   1,701 Non-core items and project costs, net(b)  5,244   4,711 Cloud computing amortization(c)  1,881   1,345 Share-based compensation expense(d)  11,788   11,861 Foreign currency transaction loss, net(e)  210   4,321 Asset sale leaseback (gain) loss, net, impairment and closed store expenses(f)  11,753   3,976 Adjusted EBITDA $ 125,098  $ 122,792

Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings Per Share Footnotes

(a) Consists of acquisition costs as reflected within the consolidated statements of operations, including legal, consulting and other fees, and expenses incurred in connection with acquisitions completed during the applicable period, as well as inventory rationalization expenses incurred in connection with acquisitions. We expect to incur similar costs in connection with other acquisitions in the future and, under GAAP, such costs relating to acquisitions are expensed as incurred and not capitalized. (b) Consists of discrete items and project costs, including third-party professional costs associated with strategic transformation initiatives as well as non-recurring payroll-related costs. (c) Includes non-cash amortization expenses relating to cloud computing arrangements. (d) Represents non-cash share-based compensation expense. (e) Represents foreign currency transaction losses, net that primarily related to the remeasurement of our intercompany loans as well as gains and losses on cross currency swaps and forward contracts. (f) Consists of the following items (i) (gains) losses, net on sale leasebacks, disposal of assets, or sale of business; (ii) net losses (gains) on sale for assets held for sale; and (iii) impairment of certain fixed assets and operating lease right-of-use assets related to closed and underperforming locations, lease exit costs and other costs associated with stores that were closed prior to the respective lease termination dates. (g) Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the consolidated statement of operations. (h) Represents valuation allowances on income tax carryforwards in certain domestic jurisdictions that are not more likely than not to be realized. (i) Represents the tax impact of adjustments associated with the reconciling items between net income (loss) and Adjusted Net Income, excluding the provision for uncertain tax positions and valuation allowance for certain deferred tax assets. To determine the tax impact of the deductible reconciling items, we utilized statutory income tax rates ranging from 9% to 36% depending upon the tax attributes of each adjustment and the applicable jurisdiction.

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

ADJUSTED EBITDA RECONCILIATION (UNAUDITED)  Three Months Ended (in thousands) March 29, 2025  March 30, 2024 Take 5 $ 100,918   $ 88,888  Franchise Brands  44,383    47,589  Car Wash  24,388    17,985  Corporate and Other  (44,591 )   (31,670 ) Adjusted EBITDA $ 125,098   $ 122,792

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

ADDITIONAL INFORMATION ON KEY PERFORMANCE INDICATORS (UNAUDITED)  Three Months Ended March 29, 2025 (in thousands) Take 5  Franchise Brands  Car Wash  Corporate and Other  Total System-wide Sales  Franchise stores $ 136,688  $ 1,029,374  $ —  $ —  $ 1,166,062 Company-operated stores  250,800   3,992   —   59,339   314,131 Independently operated stores  —   —   66,640   —   66,640 Total System-wide Sales $ 387,488  $ 1,033,366  $ 66,640  $ 59,339  $ 1,546,833  Store Count (in whole numbers)  Franchise stores  468   2,647   —   —   3,115 Company-operated stores  735   13   —   216   964 Independently operated stores  —   —   718   —   718 Total Store Count  1,203   2,660   718   216   4,797  Three Months Ended March 30, 2024 (in thousands) Take 5  Franchise Brands  Car Wash  Corporate and Other  Total System-wide Sales  Franchise stores $ 105,556  $ 1,070,072  $ —  $ —  $ 1,175,628 Company-operated stores  220,871   4,469   —   58,889   284,229 Independently operated stores  —   —   53,047   —   53,047 Total System-wide Sales $ 326,427  $ 1,074,541  $ 53,047  $ 58,889  $ 1,512,904  Store Count (in whole numbers)  Franchise stores  374   2,633   —   —   3,007 Company-operated stores  661   14   —   220   895 Independently operated stores  —   —   718   —   718 Total Store Count  1,035   2,647   718   220   4,620

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Contacts

Shareholder/Analyst inquiries: 
Dawn Francfort
ICR, Inc.
[email protected] 
(203) 682-8200

Media inquiries: 
Taylor Blanchard
[email protected] 
(704) 644-8129

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