Driven Brands Reports 7% Revenue Growth to $516.2 Million in Q1 2025

Driven Brands Holdings Inc. reported a net revenue of approximately $516.2 million for the three months ended March 29, 2025, marking a 7% increase from $482.0 million in the same period last year. The growth was primarily driven by a significant rise in company-operated store sales, which increased by 11% to $314.1 million, and independently-operated store sales, which rose by 26% to $66.6 million. The company also noted a consolidated same-store sales growth of 0.7%, continuing a trend of 17 consecutive quarters of same-store sales growth. However, the company experienced a net income of $5.5 million, a slight increase from $4.3 million in the prior year, with net income from continuing operations rising 51% to $17.5 million.

In terms of operational changes, Driven Brands completed the sale of its U.S. Car Wash business to Express Wash Operations, LLC for $385 million, which was finalized on April 10, 2025. This divestiture is classified as discontinued operations and is expected to impact the company's financial results moving forward. The company also reorganized its operating segments into three reportable segments: Take 5, Franchise Brands, and Car Wash, to enhance transparency and align with its current business model.

The company reported an increase in total operating expenses, which rose to $454.9 million from $413.9 million in the previous year, largely due to higher selling, general, and administrative expenses, which increased by 16% to $143.1 million. This increase reflects the company's growth and includes costs associated with the sale of assets and impairment charges. Additionally, interest expenses decreased by 16% to $36.5 million, primarily due to reduced borrowings on the Revolving Credit Facility and Term Loan Facility.

Driven Brands' total assets increased to $5.3 billion as of March 29, 2025, compared to $5.3 billion at the end of the previous fiscal year. The company reported a total liquidity of $641 million, consisting of $152 million in cash and cash equivalents and $489 million of undrawn capacity on its variable funding securitization senior notes and Revolving Credit Facility. Looking ahead, Driven Brands anticipates continued challenges from inflationary pressures, increased competition, and changing market dynamics, but remains optimistic about its growth prospects through strategic investments and operational improvements.