Driven Brands Reports 7% Revenue Growth to $507.4 Million in Q2 2026

Driven Brands Holdings Inc. reported a net revenue of $507.4 million for the three months ended June 27, 2026, marking a 7% increase from $475.2 million in the same period last year. The company's net income from continuing operations rose to $37.3 million, or $0.23 per diluted share, compared to $16.4 million, or $0.10 per diluted share, in the prior year. For the six months ended June 27, 2026, net revenue reached $991.9 million, up from $922.8 million, while net income from continuing operations was $61.1 million, or $0.37 per diluted share, compared to $29.9 million, or $0.18 per diluted share, in the same period of 2025.

The company experienced significant growth in franchise royalties and fees, which increased by 5% to $51.7 million for the quarter, driven by a rise in franchise system-wide sales. Company-operated store sales also saw a 6% increase, totaling $352.6 million, attributed to the opening of 93 new Take 5 locations and same-store sales growth. However, the company noted a decrease in Adjusted EBITDA, which fell to $107 million from $115 million year-over-year, primarily due to increased professional fees related to a restatement and remediation plan.

Strategically, Driven Brands has undergone significant changes, including the divestiture of its U.S. and International Car Wash businesses, which were classified as discontinued operations. The sale of the U.S. Car Wash business was completed in April 2025 for $385 million, while the International Car Wash business was sold in January 2026 for approximately $490 million. These transactions have allowed the company to reduce its debt significantly, with total long-term debt decreasing from $2.2 billion at the end of December 2025 to $1.7 billion by June 27, 2026.

Operationally, Driven Brands reported a total of 4,323 locations across North America, an increase from 4,131 a year earlier, with 192 net new stores added over the trailing twelve months. The company also noted a consolidated same-store sales increase of 1.4% for the quarter. However, the company anticipates continued challenges due to inflationary pressures affecting consumer spending, particularly among lower-income demographics, which may impact future revenue and profitability.

Looking ahead, Driven Brands expects to continue facing macroeconomic challenges, including inflation and increased competition, which could affect its performance in the latter half of 2026. The company is focused on leveraging its diversified platform to drive growth while managing costs and enhancing operational efficiencies.