Driven Brands Holdings Inc. (NASDAQ:DRVN) reported first-quarter results on Thursday that exceeded profit expectations but came in slightly below revenue forecasts, while management reaffirmed its full-year guidance.
Shares of the automotive services group were little changed in premarket trading, edging up 0.07% following the announcement.
Earnings Beat Despite Revenue Miss
The company delivered adjusted earnings per share of $0.30, surpassing the analyst consensus estimate of $0.28 by $0.02.
Revenue for the quarter totaled $484.4 million, below market expectations of $487.62 million. Nevertheless, sales increased 8% from $447.6 million in the same period a year earlier.
Across the network, same-store sales rose 2%, reflecting continued demand for the company’s automotive maintenance and repair services.
Full-Year Guidance Reaffirmed
Driven Brands left its fiscal 2026 outlook unchanged.
The company continues to expect adjusted earnings per share of between $1.15 and $1.25, with the midpoint of $1.20 matching analyst expectations.
Revenue guidance was also maintained at a range of $1.95 billion to $2.05 billion. The midpoint of $2.0 billion is in line with current Wall Street forecasts.
Take 5 Continues to Lead Growth
Management highlighted the ongoing strength of Take 5, the company’s quick oil change business, which remained its strongest-performing segment.
“Driven Brands delivered a solid start to 2026, with growth across revenue, Adjusted EBITDA and Adjusted EPS,” said Danny Rivera, President and Chief Executive Officer. “Take 5 once again led performance, delivering 4.5% same store sales growth in the quarter and marking its 23rd consecutive quarter of growth.”
Take 5 generated revenue of $323.2 million during the quarter, supported by same-store sales growth of 4.5%.
System-wide sales increased 6% to $1.6 billion, helped by a 5% increase in the company’s store base to 4,281 locations.
EBITDA Grows Despite One-Off Costs
Adjusted EBITDA rose 2% year-on-year to $104.1 million.
The result included approximately $9.1 million of non-recurring costs related to prior financial restatements, which weighed on profitability during the quarter.
Despite those expenses, the company continued to improve its balance sheet, with its net leverage ratio declining to 3.2 times adjusted EBITDA.
Expansion and Cash Flow Targets Remain in Place
Looking ahead, Driven Brands expects same-store sales growth for fiscal 2026 to range from flat to 2%.
The company also anticipates opening approximately 160 to 190 net new locations during the year as it continues to expand its footprint.
Free cash flow is projected to be between $125 million and $145 million, providing additional flexibility to support growth initiatives and balance-sheet management.
While revenue narrowly missed expectations, the company’s earnings beat, continued expansion of Take 5 and reaffirmed guidance suggest management remains confident in its outlook for the remainder of 2026.