Driven Brands Holdings Inc.

Q2 2026 reported results included same-store sales growth of 1.4%, system-wide sales of $1.6 billion, revenue of $507.4 million, adjusted EBITDA of $107 million, and adjusted diluted EPS of $0.29. Adjusted EBITDA margin was 21.1%, down about 300 basis points year over year, driven primarily by restatement costs; operating income rose to $73.1 million. For the segments, Take 5 same-store sales grew 3.6% with adjusted EBITDA of $114.9 million and a 34% margin; Franchise Brands same-store sales rose 0.5% with adjusted EBITDA of $41.2 million and a 59% margin; Auto Glass Now same-store sales increased 2.6% with adjusted EBITDA of $3.5 million. Full-year 2026 guidance was reiterated at revenue of $1.95 billion to $2.05 billion, same-store sales of flat to 2%, net new unit growth of 160 to 190 units, adjusted EBITDA of $430 million to $460 million, adjusted diluted EPS of $1.15 to $1.25, net capital expenditures of approximately 6.5% of revenue, and free cash flow of $125 million to $145 million. Management said it expects to be closer to the low end of the EBITDA range and expects restatement costs to be at the top end of the initial $35 million to $45 million range.

Danny Rivera emphasized that the company’s strategy is unchanged: use Take 5 for growth and Franchise Brands for reliable cash generation. He highlighted Take 5’s 24th consecutive quarter of comp growth, the 800-location pipeline, and the long-term goal of more than 2,500 locations, while also noting the macro backdrop is more cautious because of pressure on lower-income consumers and higher gas prices. His tone was confident but measured, repeatedly stressing disciplined execution, pricing discipline, and capital allocation.

Mike Diamond focused on the financial mechanics behind the quarter: Q2 revenue of $507.4 million, operating income of $73.1 million, adjusted EBITDA of $107 million, and adjusted diluted EPS of $0.29. He explained that SG&A was $129.7 million, or 8% of system-wide sales, and that restatement costs were a major drag, with year-to-date restatement costs of $20.9 million and Q2 costs of $11.8 million plus about $4 million of out-of-period costs. On cash flow, he said net capital expenditures were $31 million, free cash flow was $44.7 million, and net leverage ended at 3.1x, with the company still targeting 3x by year-end and planning capital allocation updates later.

Analysts pressed on inflation, lower-income consumer sensitivity, Take 5’s relative performance versus competitors, and whether the lower margins in Auto Glass Now were temporary. Management said oil and related input costs have risen, but scale, supplier relationships, and selective pricing should help preserve gross margin dollars; they do not see a need for additional price increases right now. On consumer traffic, Rivera said lower-income customer moderation continued but had stabilized, while the rest of the base remained resilient. For Auto Glass Now, Diamond said the weak margin was largely due to a roughly $4 million out-of-period cleanup charge and should not be viewed as run-rate earnings power.