Driven Brands rebounds in first quarter led by Take 5 expansion
Driven Brands Holdings (NASDAQ:DRVN) reported a rise in profit and revenue for the first quarter of fiscal 2026, supported by robust performance in its quick-lube business even as the company navigates elevated corporate expenses stemming from its recent financial restatements.
The Charlotte, North Carolina-based automotive services giant delivered total revenue of $484.4 million for the quarter ended March 28, 2026, marking an 8% increase compared to $447.6 million in the prior-year period.
While the top-line result slightly missed Wall Street consensus estimates of $487.6 million, the firm exceeded earnings projections.
Adjusted net income rose to $49 million, or $0.30 per diluted share, beating analyst predictions by $0.02 and improving upon the $0.24 per share recorded a year earlier.
System-wide sales grew 6% to $1.6 billion, driven by a 5% expansion of the company’s physical retail footprint to 4,281 locations and a consolidated same-store sales increase of 2%.
Net income from continuing operations nearly doubled, climbing to $23.8 million, or $0.14 per diluted share, from $13.5 million, or $0.08 per diluted share, in the first quarter of 2025.
Growth during the quarter was heavily anchored by the company's flagship Take 5 Oil Change segment.
The division generated $323.2 million in revenue and posted a 4.5% same-store sales increase, marking its 23rd consecutive quarter of positive organic growth.
The quick-lube brand continues to receive the lion's share of the parent company's internal expansion capital, offsetting softer operational volumes within Driven Brands' collision and franchise networks.
First-quarter adjusted EBITDA landed at $104.1 million, a 2% year-over-year increase.
The metric included $9.1 million in non-recurring, restatement-related corporate expenses.
These administrative headcounts follow a comprehensive overhaul of the company's historical financial statements, which prompted a delayed 2025 annual report filing in May and a subsequent standard non-compliance notice from Nasdaq regarding its delayed Q1 Form 10-Q.
Management expects total restatement-related costs to range between $35 million and $45 million for the full fiscal year.
Looking ahead, management reiterated its previously issued full-year fiscal 2026 outlook. Driven Brands continues to target full-year revenue between $1.95 billion and $2.05 billion, alongside adjusted EBITDA of $430 million to $460 million. Full-year adjusted diluted earnings per share remain modeled at $1.15 to $1.25, supported by projected net store growth of 160 to 190 new units across North America.
