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Jun 28, 2025
Driven Brands Q2 2025 Earnings Report
Driven Brands reported strong second quarter 2025 results, achieving its 18th consecutive quarter of same store sales growth, with significant contributions from the Take 5 segment.
Key Takeaways
Driven Brands delivered a strong second quarter performance with revenue increasing by 6.2% to $551.0 million and system-wide sales growing by 3.1% to $1.6 billion. The company maintained consistent results across key financial metrics, including adjusted EBITDA and adjusted EPS, and continued its debt reduction strategy, achieving a pro forma net leverage ratio of 3.9x Adjusted EBITDA. The Take 5 segment was a standout performer, achieving its 20th consecutive quarter of same store sales growth.
Achieved 18th consecutive quarter of overall same store sales growth, demonstrating consistent performance.
Take 5 segment showed strong growth with 15% revenue increase and 7% same store sales growth, marking its 20th consecutive quarter of same store sales growth.
Successfully divested the U.S. car wash seller note for $113.0 million, significantly reducing debt and achieving a pro forma net leverage ratio of 3.9x Adjusted EBITDA.
Reaffirmed fiscal year 2025 financial outlook, indicating confidence in continued sustainable growth and robust free cash flow generation.
Revenue by Segment
Forward Guidance
Driven Brands reaffirms its financial outlook for fiscal year 2025, expecting continued growth in revenue, Adjusted EBITDA, and Adjusted Diluted EPS, alongside net store growth and positive same store sales growth.
Positive Outlook
- Reaffirmed revenue outlook of ~$2.05 - $2.15 billion for fiscal year 2025.
- Reaffirmed Adjusted EBITDA outlook of ~$520 - $550 million for fiscal year 2025.
- Reaffirmed Adjusted Diluted EPS outlook of ~$1.15 - $1.25 for fiscal year 2025.
- Continues to expect same store sales growth of 1% - 3%.
- Continues to expect net store growth of approximately 175 - 200.
Challenges Ahead
- Outlook excludes the impact of any potential M&A and divestitures other than the completed sale of the U.S. car wash business.
- No specific negative guidance points were provided in the report.
- Reliance on non-GAAP measures for forward-looking estimates, which are not reconciled to GAAP due to inherent uncertainties.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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