Driven Brands (NASDAQ:DRVN) Releases Earnings Results, Beats Expectations By $0.05 EPS

Driven Brands (NASDAQ:DRVN) issued its quarterly earnings results on Thursday. The company reported $0.30 EPS for the quarter, topping the consensus estimate of $0.25 by $0.05, FiscalAI reports. Driven Brands had a net margin of 6.55% and a return on equity of 25.83%. The firm had revenue of $484.44 million for the quarter, compared to analysts’ expectations of $480.84 million. During the same period in the previous year, the business earned $0.27 earnings per share. Driven Brands’s revenue for the quarter was down 6.2% compared to the same quarter last year.

Here are the key takeaways from Driven Brands’ conference call:

• Driven Brands said Q1 was a solid quarter, with system-wide sales up 6%, revenue up 8%, same-store sales up 2%, and adjusted EBITDA up 2% while margins held at 21.5%.
• Take 5 Oil Change remained the growth engine, posting its 23rd consecutive quarter of same-store sales growth and delivering 4.5% comp growth, 14% system-wide sales growth, and 33.9% adjusted EBITDA margins.
• The company reiterated its full-year 2026 guidance, including revenue of $1.95 billion to $2.05 billion, adjusted EBITDA of $430 million to $460 million, and 160 to 190 net new units.
• Management remains focused on reducing net leverage, which ended Q1 at 3.2x, and said it is still on track to reach its 3x target by year-end.
• Executives flagged moderation in traffic from newer and more value-oriented Take 5 customers, especially lower-income households, and said they expect some softness in Q2 and in Franchise Brands later this year.

Driven Brands Stock Performance

Shares of Driven Brands stock opened at $13.83 on Friday. Driven Brands has a one year low of $9.80 and a one year high of $19.74. The company has a market cap of $2.28 billion, a price-to-earnings ratio of 16.66 and a beta of 0.97. The company has a debt-to-equity ratio of 2.45, a quick ratio of 0.67 and a current ratio of 0.75. The business’s 50 day moving average price is $13.11 and its 200 day moving average price is $13.93.

Analyst Ratings Changes

Several analysts recently commented on DRVN shares. Canaccord Genuity Group set a $18.00 target price on Driven Brands in a report on Monday. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $14.75 target price on shares of Driven Brands in a report on Wednesday, May 20th. Robert W. Baird set a $18.00 target price on Driven Brands and gave the stock an “outperform” rating in a report on Wednesday, May 20th. Freedom Capital raised Driven Brands to a “strong-buy” rating in a report on Monday, March 23rd. Finally, Piper Sandler raised their price objective on Driven Brands from $11.00 to $13.00 and gave the company a “neutral” rating in a report on Wednesday, May 20th. Two research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $17.28.

Institutional Investors Weigh In On Driven Brands

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. XTX Topco Ltd grew its stake in shares of Driven Brands by 133.6% in the third quarter. XTX Topco Ltd now owns 57,457 shares of the company’s stock valued at $926,000 after buying an additional 32,861 shares in the last quarter. Schonfeld Strategic Advisors LLC acquired a new stake in shares of Driven Brands in the third quarter valued at $814,000. Creative Planning grew its stake in shares of Driven Brands by 13.4% in the third quarter. Creative Planning now owns 38,831 shares of the company’s stock valued at $626,000 after buying an additional 4,584 shares in the last quarter. Campbell & CO Investment Adviser LLC acquired a new stake in shares of Driven Brands in the fourth quarter valued at $565,000. Finally, Occudo Quantitative Strategies LP acquired a new stake in shares of Driven Brands in the fourth quarter valued at $525,000. Hedge funds and other institutional investors own 77.08% of the company’s stock.

About Driven Brands

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.