Driven Brands Holdings Inc. Reports Third Quarter 2025 Results

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]