Driven Brands Holdings Stock Price, News & Analysis

Driven Brands Holdings Inc. (NASDAQ: DRVN) is an automotive services company that operates a large network of locations across North America and other international markets. According to company disclosures, it is the largest automotive services company in North America, serving both consumer and commercial automotive needs through a portfolio of well-known service brands. Driven Brands is headquartered in Charlotte, North Carolina, and is incorporated in Delaware. Its shares trade on The Nasdaq Global Select Market under the ticker symbol DRVN.

The company provides a range of automotive services that address ongoing vehicle maintenance and repair needs. As described in its public communications, these services include paint, collision, glass, vehicle repair, oil change, maintenance, and car wash. Driven Brands’ platform is designed to serve both retail drivers and commercial customers, and it services tens of millions of vehicles annually across thousands of locations.

Business segments and service categories

Driven Brands organizes its activities into multiple segments and service categories. Information from company materials and prior descriptions indicates that its segments include Maintenance, Car Wash, Paint, Collision & Glass, and Platform Services. Within these areas, the company addresses core consumer and commercial automotive needs, and also offers higher-frequency services such as oil changes and car washes. The Maintenance segment has been identified as the largest contributor to revenue among these segments.

Within its network, Driven Brands is the parent company of several prominent automotive service businesses in North America. These include Take 5 Oil Change, Meineke Car Care Centers, Maaco, 1-800-Radiator & A/C, Auto Glass Now, and CARSTAR. Through these brands, the company participates in categories such as quick oil change services, general automotive maintenance and repair, collision repair, glass replacement and repair, and distribution of certain automotive parts.

Geographic footprint and network scale

Driven Brands reports that it operates approximately 4,800 to 4,900 locations across the United States and 13 other countries. The company has also stated that it has more than 5,000 locations across North America in certain communications. Its footprint spans both franchised and company-operated stores. The company has disclosed operations in the United States, Canada, and a broader "Rest of the World" category, and has referenced locations in multiple European countries and Australia through its international car wash business.

The company has described its network as generating system-wide sales in the billions of dollars and annual revenue in the billions of dollars as well, with system-wide sales and revenue figures provided in its investor communications and earnings releases. These disclosures underscore the scale of its operations across its brands and segments.

Car wash and portfolio simplification

Driven Brands has been active in shaping its portfolio of businesses. It has disclosed that it previously operated a U.S. car wash business and an international car wash business under the IMO Car Wash brand. The company completed the sale of its former U.S. car wash business and later entered into a definitive agreement to sell IMO, its international car wash business, to Franchise Equity Partners. The IMO business includes hundreds of tunnel car wash locations, primarily in the United Kingdom and Germany, with additional sites in other European countries and Australia.

In announcing the planned divestiture of IMO, Driven Brands stated that exiting the international car wash business is intended to sharpen its focus on its core North American businesses, including scaling the Take 5 brand and emphasizing franchise operations. The company has also stated that the divestiture is expected to reduce its net leverage ratio and contribute to simplifying its portfolio and strengthening its balance sheet.

Take 5 and franchise brands

Take 5 Oil Change is a key brand within Driven Brands’ Maintenance segment. Public statements highlight Take 5 as one of the fastest-growing quick-lube service providers in the United States, with a "stay-in-your-car" service model and a rapidly expanding footprint. Driven Brands has reported that Take 5 has grown to more than 1,200 locations and that the Take 5 segment has delivered double-digit revenue growth and multiple consecutive quarters of same-store sales growth.

Beyond Take 5, Driven Brands’ franchise-oriented businesses include Meineke Car Care Centers, Maaco, and CARSTAR, among others. These brands operate in areas such as general automotive maintenance and repair, paint and body work, and collision services. Driven Brands has described these brands collectively as franchise and car wash segments that contribute to system-wide sales and cash generation.

Capital structure and securitization

Driven Brands utilizes securitization structures and other debt instruments as part of its capital strategy. The company has reported multiple whole business securitization issuances through subsidiaries such as Driven Brands Funding, LLC and Driven Brands Canada Funding Corporation. In one example, the company disclosed the issuance of Series 2025-1 Fixed Rate Senior Secured Notes, Class A-2, with an anticipated repayment date several years in the future and a final legal maturity date further out. These notes are secured by substantially all assets of the issuing entities and are governed by an amended and restated base indenture.

The company has also entered into amended management agreements for its U.S. and Canadian securitization entities, adjusting leverage-related definitions and other provisions to allow for refinancing of existing indebtedness and to align with changes in its securitization structure. These arrangements are documented in its Form 8-K filings and related exhibits.

Corporate governance and leadership changes

Driven Brands periodically reports changes in its leadership and board composition. For example, it has announced the appointment of an Executive Vice President and Chief Operating Officer, with responsibilities spanning the company’s operations, and has disclosed compensation arrangements for that role in an 8-K filing. The company has also announced the election of an independent director to its Board of Directors, who will serve on the Audit Committee. These governance updates are communicated through press releases and corresponding SEC filings.

Financial reporting and performance indicators

Driven Brands regularly reports its financial results, including revenue, system-wide sales, same-store sales growth, net income from continuing operations, and non-GAAP measures such as Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS. The company also reports key performance indicators by segment, including system-wide sales, store count, and same-store sales for segments such as Take 5, Franchise Brands, and Car Wash, as well as Corporate and Other.

In its earnings communications, the company has highlighted trends such as consecutive quarters of same-store sales growth and improvements in net leverage ratio. It also provides outlook ranges for revenue, Adjusted EBITDA, and Adjusted Diluted EPS, and discusses expectations for same-store sales growth, net store growth, and capital expenditures as a percentage of revenue. These outlooks are often presented with cautionary language regarding non-GAAP measures and forward-looking statements.

Stock information and regulatory filings

Driven Brands’ common stock is listed on The Nasdaq Global Select Market under the symbol DRVN. The company files periodic and current reports with the U.S. Securities and Exchange Commission, including Forms 10-K, 10-Q, and 8-K. Recent 8-K filings have covered topics such as quarterly financial results, entry into material definitive agreements related to securitization notes and management agreements, leadership appointments, and other material events.

Investors and analysts can review these filings to understand Driven Brands’ financial condition, capital structure, and significant corporate developments. The company also furnishes press releases as exhibits to certain 8-K filings, which provide additional context on its operations and strategy.

FAQs about Driven Brands Holdings Inc. (DRVN)

• What does Driven Brands Holdings Inc. do?
  Driven Brands Holdings Inc. operates an automotive services platform that provides paint, collision, glass, vehicle repair, oil change, maintenance, and car wash services through a network of company-operated and franchised locations. It serves both consumer and commercial customers across multiple brands.
• Where is Driven Brands headquartered and where is its stock listed?
  Driven Brands is headquartered in Charlotte, North Carolina, and is incorporated in Delaware. Its common stock trades on The Nasdaq Global Select Market under the ticker symbol DRVN.
• What are the main brands owned by Driven Brands?
  According to company disclosures, Driven Brands is the parent company of Take 5 Oil Change, Meineke Car Care Centers, Maaco, 1-800-Radiator & A/C, Auto Glass Now, and CARSTAR, among other automotive service businesses.
• How large is Driven Brands’ store network?
  Driven Brands has reported that it operates approximately 4,800 to 4,900 locations across the United States and 13 other countries, and in some communications has referenced more than 5,000 locations across North America. These locations span its various segments and brands.
• What is Take 5 Oil Change and how does it fit within Driven Brands?
  Take 5 Oil Change is a quick-lube service brand within Driven Brands’ Maintenance segment. The company has described Take 5 as one of the fastest-growing quick-lube service providers in the United States and has reported that the Take 5 segment has delivered strong revenue growth and multiple consecutive quarters of same-store sales growth.
• What is the IMO Car Wash business and what is happening with it?
  IMO Car Wash is described as Driven Brands’ international car wash business, with hundreds of tunnel car wash locations primarily in the United Kingdom and Germany and additional sites in other European countries and Australia. Driven Brands has entered into a definitive agreement to sell IMO to Franchise Equity Partners as part of a strategy to simplify its portfolio and focus on core North American businesses.
• How does Driven Brands describe its financial performance and outlook?
  Driven Brands reports quarterly and annual financial results, including revenue, system-wide sales, same-store sales, net income from continuing operations, and non-GAAP metrics such as Adjusted EBITDA and Adjusted EPS. It also provides outlook ranges for key metrics and discusses expectations for same-store sales growth, net store growth, and capital expenditures.
• What types of SEC filings does Driven Brands make?
  Driven Brands files Forms 10-K and 10-Q for annual and quarterly reports, and Forms 8-K to report material events. Recent 8-K filings have covered quarterly earnings releases, securitization note issuances, amendments to indentures and management agreements, and executive appointments.
• How does Driven Brands use securitization in its capital structure?
  The company has issued multiple series of fixed rate senior secured notes through whole business securitization structures. These notes are secured by substantially all assets of the issuing entities and are governed by an amended and restated base indenture and related management agreements, as described in its 8-K filings.
• Is Driven Brands focused on North America or international markets?
  Driven Brands describes itself as the largest automotive services company in North America and emphasizes its core North American businesses, including Take 5 and its franchise brands. It also has international operations, particularly through its car wash business, but has announced plans to divest its international car wash operations to focus more tightly on its North American portfolio.