Driven Brands reported mixed second-quarter results with systemwide sales rising 4.9% to $1.6 billion and revenue up 6.8% to $507.4 million, while management said full-year results are expected near the lower end of guidance due to weaker lower-income consumer demand and higher oil-related costs. Consolidated same-store sales grew 1.4%, and the company added 42 net new locations, ending the quarter with more than 4,300 locations. Take 5 Oil Change remained the key growth engine, posting its 24th consecutive quarter of same-store sales growth, a 13% increase in systemwide sales, and 50 net new locations, with an approximately 800-unit development pipeline and a long-term goal of more than 2,500 locations. Adjusted EBITDA declined to $107 million including restatement costs, but rose 3.4% excluding those charges, while leverage improved to 3.1 times with a target of 3 times by the end of 2026. The board also unanimously rejected an acquisition proposal from ADW, calling it highly conditional and significantly undervaluing the company.
Driven Brands Holdings IncWeaker lower-income consumer demand and higher oil-related costs pressure full-year results.
Acquisition proposal rejected as undervaluing the company.
