NEW YORK--(BUSINESS WIRE)--Rosen Law Firm, a global investor rights law firm, announces an investigation of potential breaches of fiduciary duties by the directors and officers of Driven Brands Holdings Inc. (NASDAQ: DRVN). If you currently own shares of Driven Brands stock, please visit the firm's website at https://rosenlegal.com/submit-form/?case_id=18662 for more information. You may also contact Phillip Kim of Rosen Law Firm toll free at 866-767-3653 or via email at case@rosenlegal.com. Wh. ...

Core Viewpoint - Driven Brands Holdings Inc. (DRVN) is expected to report a year-over-year increase in earnings despite lower revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus estimate for quarterly earnings is $0.32 per share, reflecting a year-over-year increase of +6.7% [3]. - Revenues are projected to be $459.43 million, which is a decrease of 18.6% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate for Driven Brands Holdings is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -31.25% [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [8][9]. - Driven Brands Holdings currently has a Zacks Rank of 4, which complicates the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, Driven Brands Holdings exceeded the expected earnings of $0.29 per share by delivering $0.34, resulting in a surprise of +17.24% [12]. - The company has beaten consensus EPS estimates in all of the last four quarters [13]. Conclusion - Driven Brands Holdings does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, but other factors should also be considered for investment decisions [16].

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of Driven Brands Holdings Inc. [1] Group 1: Legal Investigation - The investigation focuses on whether the management of Driven Brands has acted in the best interests of shareholders [1] - Long-term shareholders may seek corporate governance reforms and financial incentives through legal action [2] Group 2: Shareholder Involvement - Shareholder participation is emphasized as a means to improve company policies and oversight, potentially enhancing shareholder value [3] Group 3: Firm's Background - Halper Sadeh LLC has a history of representing investors affected by securities fraud and corporate misconduct, recovering millions for defrauded investors [4]

Company Overview - Driven Brands Holdings Inc. is the largest automotive services company in North America, providing a range of services including oil change, paint, collision, glass, vehicle repair, and maintenance [1] - The company operates approximately 4,200 locations across North America and services tens of millions of vehicles annually [1] - Driven Brands generates approximately $1.8 billion in annual revenue from about $6.1 billion in system-wide sales [1] Upcoming Earnings Call - Driven Brands will release its financial results for the fourth quarter and year ended December 27, 2025, before the market opens on February 25, 2026 [1] - Following the release, management will host a conference call at 8:30 a.m. ET to review the company's financial and operating performance [1] - The call will be available via webcast on the company's Investor Relations website, with a replay accessible for at least three months [1] Strategic Developments - The company has completed the sale of its international car wash business, IMO, to Franchise Equity Partners, marking a strategic milestone to focus on its core operations [1] - This divestiture is expected to enhance the company's focus on scaling its industry-leading Take 5 business and driving consistent cash generation from its franchise brands [1] Board of Directors Update - Timothy Johnson has been elected as an independent director to the Board of Directors, effective January 1, 2026 [1] - Johnson will also serve as a member of the Audit Committee, bringing leadership and financial expertise to the board [1]

Core Thesis - Driven Brands Holdings Inc. (DRVN) is positioned for significant upside following a strategic portfolio transformation, particularly after divesting its U.S. car wash business, which has allowed the company to focus on high-margin maintenance and repair services [2][4][5] Financial Performance - As of January 12th, DRVN's share price was $15.70, with trailing and forward P/E ratios of 114.64 and 11.25 respectively, indicating a potential undervaluation compared to peers [1] - The divestiture has simplified operations and redirected capital towards the rapidly growing Take 5 Oil Change brand, which is gaining market share in the oil change sector [3] Operational Strategy - The company’s mature franchise brands, including Meineke, Maaco, and CARSTAR, provide stable, recurring revenue from non-discretionary maintenance services, supporting growth investments [3] - The balance sheet reset has improved leverage and cash conversion, positioning DRVN for multiple re-ratings and potential asset sales that could further enhance shareholder value [4][5] Growth Potential - Roark Capital, the majority owner with a 61% stake, is motivated to realize value after a long-term hold, aligning interests towards value creation [5] - The accelerating growth of Take 5 and a more resilient portfolio mix suggest that DRVN is trading at a discount to peers, with a price target of approximately $29.50, representing over 100% upside from current levels [5]

Core Viewpoint - The Zacks Automotive - Retail and Wholesale - Parts industry is experiencing a positive outlook driven by trends such as an aging vehicle fleet, increasing vehicle technology complexity, and advancements in digitization that enhance customer experience [1][4][6]. Industry Overview - The industry encompasses retailing, distribution, and installation of vehicle parts, with options for consumers to either repair vehicles themselves (DIY) or seek professional assistance (DIFM) [3]. - The competitive landscape is evolving due to changing customer expectations and technological innovations [3]. Factors at Play - **Aging Vehicles Fuel Auto Parts Demand**: The average age of vehicles on U.S. roads has reached 12.8 years, leading to increased demand for repairs and maintenance as consumers prefer to maintain existing vehicles rather than purchase new ones [4]. - **Technology Changing Repair Dynamics**: Advanced vehicle technologies are making repairs more complex, resulting in a shift from DIY repairs to reliance on professional mechanics and service centers [5]. - **Digitization Enhancing Customer Experience**: Companies are investing in digital transformation to improve customer engagement through online platforms and transparent pricing tools, which are becoming essential for competitiveness [6]. - **Softening Auto Sales to Support Aftermarket Reliance**: Economic pressures are expected to soften new vehicle sales, prompting consumers to repair existing vehicles, thereby supporting demand for auto parts and services [7]. Industry Ranking and Performance - The Zacks Auto Retail & Wholesale Parts industry holds a favorable Zacks Industry Rank of 62, placing it in the top 25% of approximately 245 Zacks industries, indicating strong near-term prospects [8][9]. - Despite this, the industry has underperformed compared to the Auto, Tires, and Truck sector and the S&P 500 over the past year, with a growth of 2% compared to 12% and 20% respectively [11]. Current Valuation - The industry is currently trading at an EV/EBITDA ratio of 25.82X, higher than the S&P 500's 18.9X and the sector's 26.87X, reflecting the debt-laden nature of automotive companies [14]. - Over the past five years, the industry has seen an EV/EBITDA range from 22.15X to 32.70X, with a median of 26.23X [15]. Stocks in Focus - **Driven Brands (DRVN)**: The largest automotive services company in North America, focusing on oil changes and maintenance, with a strong growth trajectory through franchising and a solid cash generation model. The company has a Zacks Rank of 2 (Buy) with a projected EPS growth of 16.7% for 2026 [18][19]. - **O'Reilly Automotive (ORLY)**: Known for its disciplined expansion and strong distribution network, O'Reilly has achieved record revenues for 32 consecutive years. The company has a Zacks Rank of 3 (Hold) with an expected EPS growth of 11% for 2026 [22][23]. - **AutoZone (AZO)**: With 36 years of record sales, AutoZone is expanding its hub and mega-hub stores to improve service speed and parts availability. The company has a Zacks Rank of 3 with projected EPS growth of 3% for 2026 [26][27].

Company Overview - Driven Brands is a leading automotive services platform with a diversified portfolio of brands and over 10,000 employees, providing repair, maintenance, and distribution solutions across the U.S., Canada, and internationally [6][8] - The company operates through a mix of company-operated, franchised, and independently operated stores, generating revenue from service fees, product sales, and franchise royalties [8] Recent Developments - Emeth Value Capital disclosed a purchase of 582,255 shares of Driven Brands, valued at approximately $8.66 million, increasing its stake in the company [2][7] - Driven Brands accounted for 70.4% of Emeth Value Capital's reportable assets under management (AUM) at the end of the quarter [3][7] Financial Performance - In the most recent quarter, Driven Brands reported revenue of $535.7 million, a 6.6% increase year over year, with adjusted EBITDA rising to $136.3 million [10] - Same-store sales have grown for 19 consecutive quarters, primarily driven by Take 5 Oil Change, and management has narrowed full-year revenue guidance to between $2.10 billion and $2.12 billion [10] Market Position - As of the latest market close, shares of Driven Brands were priced at $14.96, reflecting a decline of 4.7% over the past year, underperforming the S&P 500 by 22.5 percentage points [3][4] - The company's market capitalization stands at $2.42 billion, with a trailing twelve-month (TTM) revenue of $2.44 billion and a net income of -$239.62 million [4]

Core Viewpoint - Driven Brands Holdings Inc. has announced the election of Timothy Johnson as an independent director to its Board of Directors, effective January 1, 2026, highlighting the company's commitment to enhancing its leadership and financial expertise [1] Group 1 - Timothy Johnson will also serve as a member of the Audit Committee upon his election [1] - Jonathan Fitzpatrick, Non-Executive Chair of the Board, expressed excitement about the addition of Johnson, emphasizing his leadership and financial expertise [1]

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]