Core Insights - Bragar Eagel & Squire, P.C. is investigating officers and directors of Driven Brands Holdings, Inc. and Jasper Therapeutics, Inc. on behalf of long-term stockholders due to class action complaints filed against both companies [1][4] Driven Brands Holdings, Inc. (NASDAQ: DRVN) - A class action complaint was filed against Driven Brands on December 22, 2023, alleging that the company made materially false and misleading statements regarding its ability to integrate acquired businesses and the performance of its car wash segment [2][3] - The complaint claims that Driven Brands misrepresented its integration capabilities as a "core strength" and assured investors of "significant progress" in integrating its U.S. auto glass businesses, while downplaying issues related to customer demand in its car wash segment [3] Jasper Therapeutics, Inc. (NASDAQ: JSPR) - A class action complaint was filed against Jasper Therapeutics on September 19, 2025, alleging that the company made materially false and misleading statements about its business operations and compliance policies [4][5] - The complaint highlights that Jasper lacked necessary controls to ensure third-party manufacturers complied with cGMP regulations, which increased risks for ongoing studies and overstated the company's financial and clinical prospects [5]

CHARLOTTE, N.C.--(BUSINESS WIRE)--Driven Brands Holdings Inc. (NASDAQ: DRVN) ("Driven Brands†or the "Company†) today announced that it will participate in the Morgan Stanley Global Consumer & Retail Conference in New York. The Company's fireside chat is scheduled to begin at 3:00 p.m. ET on Wednesday, December 3, 2025. The fireside chat will be webcast live from the Company's Investor Relations website at investors.drivenbrands.com on the Events & Presentations page. It will also be av. ...

Core Insights - Driven Brands (DRVN) shares have experienced a significant decline, falling 27% in the past two months and over 12% year to date, underperforming the broader Russell 2000 index [1] Company Performance - The stock's recent performance indicates a troubling trend, with a notable drop in value that raises concerns about the company's market position [1]

Financial Data and Key Metrics Changes - Driven Brands reported a revenue increase of 7% year-over-year, totaling $535.7 million for Q3 2025 [4][16] - Adjusted EBITDA for the quarter was $136 million, reflecting a growth of approximately 4.3 million compared to Q3 2024 [4][16] - The company reduced its net leverage to 3.8 times, down from 4.1 times at the end of Q2 2025, with a target of reaching 3 times by the end of 2026 [4][21][24] - Adjusted diluted EPS from continuing operations increased to $0.34, up $0.11 from the previous year [18] Business Line Data and Key Metrics Changes - Take Five Oil Change achieved a 21st consecutive quarter of same-store sales growth, with a 7% increase in same-store sales and 18% growth in system-wide sales [5][18] - The franchise segment, including brands like Meineke and Maaco, reported a 1% increase in same-store sales, with adjusted EBITDA margins of 66% [8][19] - The international car wash segment saw a 4% increase in same-store sales, but adjusted EBITDA decreased to $15 million due to higher costs [9][20] Market Data and Key Metrics Changes - System-wide sales for Driven Brands grew by 5% year-over-year, totaling $1.6 billion [4][16] - The company added 39 net new stores in Q3, contributing to a total of 167 new stores over the past 12 months [4][15] Company Strategy and Development Direction - Driven Brands remains focused on growth and cash generation, particularly through the Take Five and franchise segments [4][12] - The company plans to open approximately 170 new Take Five locations in 2025, with a commitment to maintain a growth rate of 150 or more new units annually [6][42] - Recent organizational changes were made to strengthen operational leadership, with Mo Khalid appointed as COO and Tim Austin as President of Take Five [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a dynamic consumer environment with ongoing pressures, particularly in Q4, leading to a more conservative outlook [9][25] - The company expects revenue for the full year to be in the range of $2.1 billion to $2.12 billion, with adjusted EBITDA between $525 million and $535 million [25][26] - Management emphasized the resilience of their diversified portfolio despite macroeconomic uncertainties [9][25] Other Important Information - Free cash flow for Q3 was $51.9 million, driven by strong operating performance [21] - The company has repaid approximately $486 million of debt year-to-date, with a focus on achieving a net leverage of three times by the end of 2026 [24] Q&A Session Summary Question: Can you provide more details on the comps progression and the exit rate for Q3? - Management noted consistent performance in Q3 but acknowledged choppiness in Q4 due to broader consumer environment impacts, with potential for negative comps in Q4 primarily driven by franchise brands [28][30] Question: What are the expectations for unit growth in the coming years? - Management expressed confidence in achieving around 170 new units in 2025 and maintaining a target of 150 or more new Take Five locations annually [38][42] Question: How is the new media mix model expected to benefit brand awareness? - The new media mix model aims to optimize advertising spend across channels and improve return on advertising investment, with expectations for enhanced brand awareness as more locations are established [45][46] Question: How has the labor market affected hiring and retention? - Management did not provide specific details on labor market conditions but indicated ongoing efforts to maintain a strong workforce [76]

Financial Data and Key Metrics Changes - Driven Brands reported a revenue increase of 7% year-over-year, totaling $535.7 million for Q3 2025, with adjusted EBITDA of $136.3 million, reflecting a growth of approximately $4.3 million compared to Q3 2024 [5][20][29] - The company achieved a net leverage ratio of 3.8 times, down from 4.1 times at the end of Q2 2025, and is on track to reach a target of three times by 2026 [6][27][28] - Adjusted diluted EPS from continuing operations increased to $0.34, up $0.011 from Q3 2024, driven by higher operating income and lower interest expenses [21][29] Business Line Data and Key Metrics Changes - The Take Five segment, which represents over 75% of Driven's overall adjusted EBITDA, experienced a same-store sales increase of 6.8% and revenue growth of 13.5% [21][22] - The Franchise segment reported a same-store sales growth of 0.7%, with adjusted EBITDA margins of 66%, despite a revenue decline of 2.3% due to a decrease in the weighted average royalty rate [10][22] - The International Car Wash segment saw a 3.9% increase in same-store sales, although adjusted EBITDA decreased to $15 million, or 27.8% of sales, due to higher costs [23][24] Market Data and Key Metrics Changes - System-wide sales increased by 4.7% to $1.6 billion in Q3 2025, supported by the addition of 39 net new stores during the quarter [19][20] - The company continues to face a dynamic consumer environment, with Q4 expected to be choppy due to macroeconomic uncertainties, including a government shutdown [11][29] Company Strategy and Development Direction - Driven Brands remains focused on growth and cash generation, with plans to open approximately 170 new Take Five locations in 2025, maintaining a commitment to open 150 or more new units annually [8][16] - The company is innovating to drive traffic and efficiency, including the implementation of a new media mix model for better advertising spend allocation and testing AI-driven technology for operational improvements [9][52] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the consumer environment, noting ongoing pressure on lower-income consumers and potential disruptions from government funding issues [11][60] - Despite the challenges, management remains optimistic about the strength of the Take Five brand and its growth prospects, expecting continued performance in Q4 [36][80] Other Important Information - The company announced two key organizational changes, appointing Mo Khalid as COO and Tim Austin as President of Take Five Oil Change, aimed at strengthening operational leadership [12][14] - Driven Brands has a robust pipeline of approximately 900 locations, with over a third secured or further along in the development process [8][45] Q&A Session Summary Question: Can you provide more details on the comps progression and the exit rate for Q3? - Management noted consistent performance in Q3, but highlighted choppiness in Q4 due to broader consumer environment uncertainties, indicating a potential for negative comps in Q4 [32][36] Question: What is the expected free cash flow conversion rate going forward? - Management indicated a conversion rate of about 70% of adjusted EBITDA into free cash flow year-to-date, with potential for improvement as capital expenditures may decline in 2026 [38][39] Question: What are the unit growth expectations for Take Five given increasing competition? - Management remains confident in achieving 150 or more new Take Five locations annually, supported by a strong franchisee base and a robust pipeline [46][47] Question: How has the new media mix model impacted brand awareness? - The new media mix model is expected to optimize advertising spend and improve return on investment, with potential for expanded marketing channels as the brand grows [52][55] Question: Are there signs of oil change deferrals among lower-income consumers? - Management acknowledged pressure on lower-income consumers but noted strong performance in non-oil change revenue and attachment rates, indicating resilience in the business [66][67] Question: What is the outlook for the collision industry? - Management observed a mixed outlook for the collision industry, with expectations of continued share gains despite industry headwinds [72][74]

分组1 - Driven Brands Holdings Inc. reported quarterly earnings of $0.34 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and showing an increase from $0.26 per share a year ago, resulting in an earnings surprise of +17.24% [1] - The company achieved revenues of $535.68 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.41%, although this represents a decline from year-ago revenues of $591.68 million [2] - Driven Brands has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] 分组2 - The stock has underperformed, losing about 11.7% since the beginning of the year, compared to the S&P 500's gain of 16.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $517.66 million, and for the current fiscal year, it is $1.20 on revenues of $2.11 billion [7] - The Automotive - Retail and Wholesale - Parts industry, to which Driven Brands belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Performance - The company's net leverage ratio as of Q3 2025 was 3.8x [1, 2] - Net loss for the twelve months ended September 27, 2025, was $221.808 million [1] - Debt Agreement Adjusted EBITDA for the twelve months ended September 27, 2025, was $543.930 million [1] - Total debt as of September 27, 2025, was $2.21438 billion, less cash and cash equivalents of $162.028 million, resulting in net debt of $2.052352 billion [1] Key Adjustments to EBITDA - Depreciation and amortization expenses totaled $151.776 million for the twelve months ended September 27, 2025 [1] - Share-based compensation expense was $40.767 million for the twelve months ended September 27, 2025 [1] - Asset sale leaseback loss, net, impairment, notes receivable loss, and closed store expenses amounted to $443.625 million for the twelve months ended September 27, 2025 [1] Pro Forma and Other Adjustments - Pro forma EBITDA adjustments reduced EBITDA by $11.808 million [1] - Run rate adjustments related to store openings and closings increased EBITDA by $10.208 million [1] - Other adjustments permitted under the Debt Agreement increased EBITDA by $10.227 million [1]

Financial Performance - Driven Brands reported Q3 2025 revenue of $535.7 million, a 6.6% increase year-over-year[2] - Net income from continuing operations was $60.9 million, or $0.37 per diluted share, compared to a net loss of $11.5 million, or $(0.07) per diluted share, in the prior year[3] - Adjusted EBITDA for the quarter was $136.3 million, up $4.3 million from the previous year[3] - Net income for the nine months ended September 27, 2025, was $113,932,000, a significant increase from $19,473,000 for the same period in 2024, representing a growth of 484%[20] - Adjusted net income from continuing operations for the three months ended September 27, 2025, was $56,195,000, up from $38,081,000 in the prior year, representing a 47.6% increase[27] - Adjusted EBITDA for the three months ended September 27, 2025, was $136,260,000, compared to $131,943,000 for the same period in 2024, reflecting a 3.5% increase[32] Sales and Revenue Growth - System-wide sales increased by 4.7% to $1.6 billion, driven by a 2.8% rise in same store sales and a 3.5% increase in store count[2] - The Take 5 segment revenue increased by 14%, marking the 19th consecutive quarter of growth in same store sales[1] - Total system-wide sales for the three months ended September 27, 2025, reached $1,625,432,000, a significant increase from $1,552,422,000 for the same period in 2024, representing a year-over-year growth of approximately 4.7%[36] - Total system-wide sales for the nine months ended September 27, 2025, were $4,797,037,000, compared to $4,641,368,000 for the same period in 2024, representing an increase of approximately 3.4%[37] Outlook and Projections - The company narrowed its fiscal year 2025 revenue outlook to approximately $2.10 - $2.12 billion and Adjusted EBITDA to approximately $525 - $535 million[10] - Same store sales growth is expected at the low end of the original range of 1% to 3%, with net store growth projected at approximately 175 to 200[10] - Adjusted EBITDA and Adjusted EPS are included in the company's Fiscal Year 2025 Outlook, although specific figures were not provided due to the uncertainty of future events[24] Cash Flow and Liquidity - The net leverage ratio improved to 3.8x Adjusted EBITDA, with total liquidity of $755.7 million[7] - Cash provided by operating activities for the nine months ended September 27, 2025, was $234,745,000, compared to $208,508,000 for the same period in 2024, indicating an increase of approximately 12.5%[20] - The company experienced a net change in cash, cash equivalents, and restricted cash of $(5,518,000) for the period, compared to an increase of $33,344,000 in the prior year[21] Assets and Liabilities - Total assets decreased to $4,152,930,000 as of September 27, 2025, down from $5,261,787,000 as of December 28, 2024, reflecting a decline of approximately 21%[19] - Total current liabilities increased to $648,148,000 as of September 27, 2025, compared to $433,895,000 as of December 28, 2024, marking an increase of about 49%[19] - Total liabilities decreased to $3,359,440,000 as of September 27, 2025, from $4,654,453,000 as of December 28, 2024, representing a decline of approximately 28%[19] - The company reported an accumulated deficit of $(888,651,000) as of September 27, 2025, an improvement from $(1,002,583,000) as of December 28, 2024[19] Segment Performance - The company reported a total revenue of $107,307,000 from the Take 5 segment for the three months ended September 27, 2025, an increase from $93,287,000 in the prior year[35] - Franchise Brands generated $49,734,000 in revenue for the three months ended September 27, 2025, slightly down from $50,196,000 in the same period of 2024[35] - The Car Wash segment reported revenue of $15,030,000 for the three months ended September 27, 2025, compared to $16,000,000 in the prior year[35] - Corporate and Other segments reported a loss of $35,811,000 for the three months ended September 27, 2025, compared to a loss of $27,540,000 in the same period of 2024[35] Store Count and Expansion - The total store count as of September 27, 2025, was 4,888, which includes 3,165 franchise stores, 1,006 company-operated stores, and 717 independently operated stores[36] - The number of franchise stores increased from 3,078 in September 2024 to 3,165 in September 2025, showing a growth of 2.8%[36] - The company plans to continue expanding its store count and enhancing its service offerings to drive future growth[36] Strategic Initiatives - The company expects to continue incurring acquisition-related costs and non-core items as part of its strategic transformation initiatives[33] - The company is focusing on new product development and technology advancements to improve customer experience and operational efficiency[36]

Core Insights - Driven Brands Holdings Inc. reported a strong third quarter for 2025, with revenue of $535.7 million, reflecting a 6.6% increase year-over-year [3][4] - The Take 5 segment experienced a revenue increase of 14%, with same-store sales growth of 7%, marking the 19th consecutive quarter of growth in same-store sales [1][5] - The company narrowed its fiscal year 2025 outlook, projecting revenue between $2.10 billion and $2.12 billion and adjusted EBITDA between $525 million and $535 million [11] Financial Performance - Net income from continuing operations was $60.9 million, or $0.37 per diluted share, compared to a net loss of $11.5 million, or $(0.07) per diluted share, in the prior year [4][19] - Adjusted net income was $56.2 million, or $0.34 per diluted share, compared to $38.1 million, or $0.23 per diluted share, in the prior year [4][19] - Adjusted EBITDA for the quarter was $136.3 million, an increase of $4.3 million from the previous year [4][19] Segment Performance - The Take 5 segment generated system-wide sales of $411.6 million, with a same-store sales increase of 6.8% [6] - Franchise Brands reported system-wide sales of $1.09 billion, with a same-store sales increase of 0.7% [6] - The Car Wash segment achieved system-wide sales of $51.4 million, with a same-store sales increase of 3.9% [6] Capital and Liquidity - The company ended the quarter with a net leverage ratio of 3.8x adjusted EBITDA and total liquidity of $755.7 million, including $162.0 million in cash [8] - Driven Brands divested a seller note for $113.0 million in cash proceeds, which were used to pay off outstanding term loan principal and part of the revolving credit facility [9] - The company completed an offering of $500 million in senior notes, with proceeds primarily used to repay existing senior secured notes [10] Outlook - The company expects same-store sales growth at the low end of its original range of 1% to 3% and anticipates net store growth of approximately 175 to 200 [11][12] - The narrowed fiscal year 2025 outlook reflects continued execution of the company's Growth and Cash strategy, focusing on expansion and cash generation [5][11]

Core Viewpoint - Johnson Fistel, PLLP is investigating potential breaches of fiduciary duties by certain directors and officers of Driven Brands Holdings Inc. (NASDAQ: DRVN) towards the company and its shareholders [1][4]. Group 1: Investigation Details - The investigation aims to determine if senior officers or board members harmed Driven Brands by breaching fiduciary duties or violating securities laws related to misrepresentations and omissions [4]. - The court has previously denied the defendants' motion to dismiss a shareholder class action lawsuit, which alleges misrepresentations regarding Driven's ability to integrate acquired businesses and the performance of its car wash segment [3]. Group 2: Shareholder Rights - Current long-term shareholders of Driven Brands may have legal claims that can be brought against the company's directors and officers [2]. - Shareholders can join the investigation through a provided link to discuss their legal rights [3].