Q1 2026 Driven Brands Holdings Inc Earnings Call Transcript
Key Points
- Driven Brands Holdings Inc (DRVN) reported a solid first quarter with system-wide sales growth of 6%, revenue growth of 8%, and same-store sales growth of 2%.
- The Take 5 Oil Change segment delivered strong performance with a 14% increase in system-wide sales and a 4.5% increase in same-store sales.
- The company achieved adjusted EBITDA margins of 21.5% and is on track to reach its target of 3 times net leverage by year-end.
- Driven Brands Holdings Inc (DRVN) continues to benefit from long-term industry trends such as an aging vehicle fleet and increasing vehicle complexity.
- The company has made strategic investments in its management team, including the appointment of a new Chief Marketing Officer to enhance marketing capabilities.
- There is a noted moderation in traffic among newer and more value-oriented customers, particularly those with household incomes under $50,000.
- The company is facing macroeconomic pressures, including inflation and higher living costs, which are affecting certain customer segments.
- Restatement costs are expected to be significant, with an anticipated $35 million to $45 million in nonrecurring costs for the year.
- The Franchise Brands segment is expected to see moderation in same-store sales growth in the latter half of the year.
- Adjusted EBITDA margins are under pressure due to restatement costs and are expected to be lower in the second quarter compared to the first.
Thank you for standing by. My name is Jayal, and I will be your conference operator today. At this time, I would like to welcome everyone to the Driven Brands first quarter 2026 earnings call. All lines have been placed on mute to prevent any background noise. (Operator Instructions) We would now like to turn the conference over to Steve Alexander, Investor Relations. You may begin.
Good morning. Welcome to Driven Brands first quarter 2026 earnings conference call. The earnings release and net leverage ratio reconciliation are available for download on our website at investors.drivenbrands.com. On the call with me today are Danny Rivera, President and Chief Executive Officer; and Mike Diamond, Executive Vice President and Chief Financial Officer. In a moment, Danny and Mike will walk you through our financial and operating performance for the quarter.
Before we begin our remarks, I would like to remind you that management will refer to certain non-GAAP financial
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