Driven Brands Reports 6% Revenue Growth to $550.99 Million, Net Income Declines 68%

Driven Brands Holdings Inc. reported a net revenue of $550.99 million for the three months ended June 28, 2025, marking a 6% increase from $518.80 million in the same period last year. For the six months ended June 28, 2025, total revenue reached $1.07 billion, up 7% from $1.00 billion in the prior year. The company's net income from continuing operations, however, saw a significant decline of 68% to $11.81 million, or $0.07 per diluted share, compared to $37.22 million, or $0.22 per diluted share, in the previous year. This decrease was attributed to higher selling, general, and administrative expenses, losses related to the Seller Note Receivable, and the absence of earnings from the sale of the Canadian distribution business.

The company experienced notable changes in its operational metrics, including the addition of 52 net new stores during the quarter, contributing to a total of approximately 4,800 locations across North America and 13 other countries. The Take 5 segment, which includes oil change services, reported a 15% increase in net revenue to $304.22 million, driven by same-store sales growth and new store openings. Conversely, the Franchise Brands segment saw a decline in revenue, down 8% to $74.61 million, primarily due to decreased system-wide sales.

In terms of strategic developments, Driven Brands completed the sale of its U.S. Car Wash business for $385 million in April 2025, which has been classified as discontinued operations. The transaction included a cash payment of $255 million and a seller note receivable of $130 million. The company subsequently sold the seller note for $113 million in July 2025, using the proceeds to reduce outstanding debt. This divestiture aligns with the company's strategy to streamline operations and focus on its core automotive services.

Operationally, the company reported a consolidated same-store sales increase of 1.7% for the quarter, with the Take 5 segment achieving a 6.6% increase, while the Franchise Brands segment experienced a decline of 1.5%. The Car Wash segment reported a significant 19.4% increase in same-store sales, reflecting improved volume and pricing. The company’s Adjusted EBITDA remained flat at $143 million for the quarter, with the Take 5 segment contributing significantly to this figure.

Looking ahead, Driven Brands anticipates continued challenges due to macroeconomic factors such as inflation and increased competition, which may impact demand across its segments. The company remains focused on leveraging its diversified service offerings and expanding its store footprint to drive future growth. The management expressed confidence in the company's ability to navigate these challenges while maintaining operational efficiency and profitability.