The outlook for the Zacks Automotive - Retail and Wholesale - Parts industry remains constructive, supported by several key trends. The aging U.S. vehicle fleet continues to drive steady demand for replacement parts and maintenance. At the same time, growing vehicle technology is making repairs more complex, supporting greater reliance on professional services rather than DIY repairs. Digitization is also improving customer experience, helping retailers stay competitive and efficient.While new vehicle sales ...

This automotive services platform provides repair, maintenance, and distribution solutions across the U.S., Canada, and abroad.On Wednesday, New Orleans-based Emeth Value Capital disclosed a buy of 582,255 shares of Driven Brands (DRVN 1.37%), an estimated $8.66 million transaction based on quarterly average pricing.What HappenedAccording to an SEC filing released Wednesday, Emeth Value Capital increased its position in Driven Brands (DRVN 1.37%) by 582,255 shares during the fourth quarter. The estimated va ...

CHARLOTTE, N.C.--(BUSINESS WIRE)--Driven Brands Holdings Inc. (NASDAQ: DRVN) ("Driven Brands†or the "Company†) today announced the election of Timothy Johnson as an independent director to its Board of Directors, effective January 1, 2026. Upon his election, Johnson will also serve as a member of the Audit Committee. "We're excited to expand our Board with the addition of Tim,†said Jonathan Fitzpatrick, Non-Executive Chair of the Board. "He brings leadership and financial expertise along with. ...

Group 1 - The conference features Driven Brands, highlighting a significant transformation within the company that the market has anticipated [3] - Driven Brands is addressing growth challenges in one segment of its business, which has contributed to a previously bloated balance sheet that is now being cleaned up [3] - The announcement made during the conference is seen as a crucial step in the company's ongoing transformation process [3]

Driven Brands Conference Call Summary Company Overview - **Company**: Driven Brands (NasdaqGS:DRVN) - **Date**: December 03, 2025 - **Speakers**: Danny Rivera (President and CEO), Mike Diamond (Executive VP and CFO) Key Points Industry and Business Transformation - Driven Brands is undergoing a transformation focused on growth and cash generation, particularly after selling its U.S. and international car wash businesses, which did not align with its core growth and cash strategy [4][5][6] - The company aims to concentrate on its franchise businesses, which have a strong margin profile, particularly in the oil change sector [5][11] Financial Strategy and Leverage - Driven Brands is committed to reducing its net leverage to three times by the end of 2026, with the recent sale expected to accelerate this process by approximately 0.3 times [7][8][9] - The company plans to use cash from the sale to pay down debt and improve its balance sheet [7][8] Growth and Cash Framework - The growth strategy is anchored in the success of the Take 5 oil change business, which has expanded from 40 locations in 2016 to approximately 1,350 locations, with plans to reach 2,500 units [11][23] - The company is focused on maintaining a balance between growth and cash generation, with a target of opening over 150 locations annually [14][23] Performance Metrics - Driven Brands reported a 19th consecutive quarter of positive same-store sales growth, with Take 5 achieving a 21st consecutive quarter of growth [16] - Take 5 has seen a 7% increase in Q3, while the franchise segment grew by 1% [20] Market Dynamics - The company operates in a non-discretionary service category, which provides resilience against economic cycles, as car maintenance remains essential [16][21] - Despite some choppiness in Q4, the company remains optimistic about its guidance and overall performance [20][21] New Service Rollouts - Driven Brands has successfully introduced new services, such as differential fluid service, which has been well-received by customers, maintaining high Net Promoter Scores (NPS) [28][29] - The company has increased attachment rates for additional services from mid-30s to low 50s since acquiring Take 5 [29][30] Collision and Glass Segments - The collision industry is facing challenges, including inflation and high total loss rates, but Driven Brands continues to gain market share [49][50][51] - The newly established glass division, Autoglass Now, is expected to grow through strategic acquisitions and partnerships, with a focus on insurance and commercial deals [40][41][42] Long-term Vision - Driven Brands aims to maintain a diversified portfolio, with a focus on franchise growth while balancing company-owned locations [57][58] - The company is committed to a long-term vision of expanding its franchise network while ensuring strong unit economics [59][60] Conclusion - Driven Brands is positioned for continued growth through strategic divestitures, a focus on core businesses, and a commitment to improving its financial metrics. The company remains optimistic about its future prospects and the resilience of its business model in the face of economic challenges [70][71]

Core Viewpoint - The article highlights significant research upgrades for various companies, indicating a positive shift in investor sentiment and potential growth opportunities in their respective markets [1]. Group 1: Upgrades - Arete upgraded Uber (UBER) to Buy from Neutral with a price target of $125, increased from $82, citing that concerns over competition from autonomous vehicles are overstated [2]. - Arete upgraded Lyft (LYFT) to Neutral from Sell with a price target of $20, up from $10, noting potential partnerships with Amazon's Zoox by 2026 [2]. - Longbow upgraded Garmin (GRMN) to Buy from Neutral with a price target of $250, arguing that the recent 25% decline in shares is an overreaction to anticipated revenue challenges in the automotive sector in early 2026 [2]. - Morgan Stanley upgraded Vertex Pharmaceuticals (VRTX) to Overweight from Equal Weight with a price target of $516, up from $438, reflecting a more optimistic view on the company's kidney franchise pipeline [2]. - William Blair upgraded Driven Brands (DRVN) to Outperform from Market Perform after positive management meetings, indicating improved confidence in the company's leadership stability [2].

Core Insights - Franchise Equity Partners (FEP) has announced its first international acquisition by purchasing IMO Car Wash, the largest tunnel car wash operator globally, which has 720 locations primarily in the UK and Germany [1][2]. Company Overview - IMO Car Wash has been in operation for 60 years and is recognized as a trusted car wash brand, serving millions of customers annually through a high-volume model [2]. - The company boasts a diversified operational footprint and is supported by a management team with extensive experience in the car wash industry [2]. Strategic Goals - FEP views the acquisition of IMO as a unique opportunity to acquire a market-leading brand with a strong operational team and a defensible market position [3]. - The firm aims to optimize and enhance performance across IMO's existing portfolio, leveraging its established customer base and retail partnerships to drive organic growth [3][4]. - Under FEP's ownership, IMO plans to focus on increasing wash volumes, improving customer experience, and enhancing strategic retail partnerships [3]. Market Positioning - The acquisition aligns with FEP's strategy of partnering with leading operators in resilient industries, where scale, brand recognition, and operational efficiency provide sustainable competitive advantages [4].

Core Viewpoint - Driven Brands Holdings Inc. has announced a definitive agreement to divest its international car wash business, IMO, to Franchise Equity Partners for €406 million, which is aimed at simplifying its portfolio and strengthening its balance sheet [1][2][3]. Financial Impact - The divestiture is expected to reduce the company's pro forma leverage by approximately 0.3x, with a target to achieve a net leverage ratio of 3x by the end of 2026 [3]. - Cash proceeds from the transaction will primarily be utilized to pay down debt and for general corporate purposes [4]. - The company has updated its fiscal year 2025 outlook, projecting revenue of approximately $1.85 - $1.87 billion and Adjusted EBITDA of around $445 - $455 million [5]. Operational Changes - The international car wash business will be reported as discontinued operations starting in the fourth quarter of 2025, while Auto Glass Now will be reported as a stand-alone segment [4]. - Same store sales growth is now expected to be slightly below the original range of 1% to 3% due to the reclassification of the car wash business [6]. - The company continues to anticipate net store growth of approximately 175 to 200 locations [7]. Strategic Focus - The divestiture allows Driven Brands to sharpen its focus on its core North American businesses, particularly scaling Take 5 and enhancing cash generation through its franchise brands [2]. - The transaction is expected to close in the first quarter of 2026, pending regulatory approvals [3].

Core Viewpoint - Driven Brands Holdings Inc. (DRVN) shows potential for significant upside, with a mean price target of $21.31 indicating a 45.9% increase from the current price of $14.61 [1] Price Targets and Analyst Estimates - The mean estimate consists of 13 short-term price targets, with a standard deviation of $2.1, indicating variability among analysts [2] - The lowest estimate is $18.00, suggesting a 23.2% increase, while the highest estimate is $25.00, indicating a potential surge of 71.1% [2] - A low standard deviation among price targets suggests a high degree of agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Analyst Sentiment - Analysts are optimistic about DRVN's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which correlates with near-term stock price movements [11] - Over the last 30 days, six earnings estimates have been revised upward, leading to a 5.4% increase in the Zacks Consensus Estimate [12] - DRVN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - While price targets are a common tool for investors, they can often mislead, and reliance solely on them may lead to poor investment decisions [3][7][10] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8]

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of Driven Brands Holdings Inc., which may affect shareholder rights and corporate governance [1][2]. Group 1: Shareholder Rights and Legal Options - Long-term shareholders of Driven Brands may seek corporate governance reforms, financial incentives, or other benefits through legal action [2]. - Shareholder involvement is crucial for improving company policies and enhancing shareholder value [3]. Group 2: Firm's Background and Expertise - Halper Sadeh LLC represents global investors affected by securities fraud and corporate misconduct, having successfully implemented corporate reforms and recovered significant funds for defrauded investors [4].