Driven Brands Holdings (DRVN) First Take 2Q26 EPS beat driven by higher sales and margin

Equity Research 6 August 2026 | 8:23AM EDT

Driven Brands Holdings (DRVN): First Take: 2Q26 EPS beat driven by higher sales and margin; FY26 guidance maintained but EBITDA to be

DRVN’s 2Q26 adj. EPS of $0.29 beat the GS and consensus (FactSet) estimates of Mark Jordan, CFA | $0.23 and $0.26, respectively. Total revenue of $507.4mn beat the GS/consensus Goldman Sachs & Co. LLC estimates of $504.0mn/$506.3mn driven by same-store sales growth of 1.4%, above Kate McShane, CFA the GS and consensus estimate of 1.1%. Adj. EBITDA decreased 6.9% y/y to | $107.0mn and beat the GS/consensus estimates of $102.6mn/$103.5mn, and adj. Goldman Sachs & Co. LLC

EBITDA margin decreased 310 bps y/y to 21.1%. Emily Ghosh | Management reiterated their FY26 guidance for same-store sales growth of flat to Goldman Sachs & Co. LLC 2%, revenue of $1.95bn-$2.05bn, and adj. EPS of $1.15-$1.25, but noted adj. Nishi Agarwal | EBITDA is now expected to come in near the lower-end of the $430mn-$460mn Goldman Sachs India SPL range, reflecting uncertainty with lower-income customers and the ongoing conflict in the Middle East, while restatement-related costs are expected to be near the Grace Chee | higher-end of the $35mn-$45mn range. Goldman Sachs & Co. LLC

Samantha Chiang Bottom line: Driven Brands’ 3Q beat highlighted a better-than-expected adj. | EBITDA margin, but the beat vs. our estimate primarily came from a lesser loss at the Goldman Sachs & Co. LLC

company’s Corporate and Other segment, with adj. EBITDA margins for the Take 5, Franchise Brands, and Auto Glass Now segments all coming in below our estimate. The lesser Corporate and Other segment loss likely stems from restatement-related costs of $11.8mn for the quarter coming in below the expected >$15mn which management noted on the 1Q conference call in mid-June.

On the conference call, we expect questions to focus on (1) Take 5 pricing and oil supply, (2) demand trends for lower-income customers, (3) margin compression at Take 5 over the coming quarters, (4) what drove the lower margins for the Auto Glass Now segment, (5) the cadence of restatement costs for 2H26, and (6) plans for capital allocation once leverage reaches their targeted 3.0x level (3.1x as of 2Q).

Exhibit 1: FY26 guidance history FY 2026 Guidance Metrics 4Q 2025 1Q 2026 2Q 2026 Same-store sales growth 0%-2% - - Revenue $1.95bn-$2.05bn - - Adj. EBITDA $430mn-$460mn - low-end of range adj. EPS $1.15-$1.25 - - Free cash flow $125mn-$145mn - - Net store growth 160-190 - -

“-” denotes that prior guidance metrics were maintained

1Q26 Results n Consolidated net revenue increased 6.8% y/y to $507.4mn, above the

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Goldman Sachs Driven Brands Holdings (DRVN)

GS/consensus estimates of $504.0mn/$506.3mn, driven by system-wide same-store sales growth of 1.4%, also above the GS and consensus estimate of 1.1%. n Consolidated adj. EBITDA decreased 6.9% y/y to $107.0mn, above the GS/consensus estimates of $102.6mn/$103.5mn, and adj. EBITDA margin decreased 310 bps y/y to 21.1%, above the GS and consensus estimate of 20.4%. n Take 5 segment same-store sales increased 3.6% y/y, slightly above the GS estimate of 3.5%, and segment total net revenue increased 10.1% y/y to $334.8mn, above the GS estimate of $327.3mn. Segment adj. EBITDA increased 7.8% y/y to $114.9mn (vs. GS of $115.7mn), and adj. EBITDA margin decreased 71 bps y/y to 34.3% (vs. GS of 35.4%). n Franchise Brands segment same-store sales increased 0.5% y/y, above the GS estimate of flat, and segment total net revenue decreased 6.7% y/y to $69.6mn, below the GS estimate of $74.5mn. Segment adj. EBITDA decreased 5.5% y/y to $41.2mn (vs. GS of $45.4mn), and adj. EBITDA margin…