Driven Brands (NASDAQ:DRVN) Issues Earnings Results

Driven Brands (NASDAQ:DRVN) posted its earnings results on Wednesday. The company reported $0.30 EPS for the quarter, missing the consensus estimate of $0.32 by ($0.02), Briefing.com reports. Driven Brands had a positive return on equity of 25.31% and a negative net margin of 9.14%.The business had revenue of $457.33 million during the quarter, compared to the consensus estimate of $459.50 million. During the same period in the prior year, the firm earned $0.30 earnings per share.

Driven Brands Price Performance

DRVN stock traded down $0.25 during trading on Thursday, hitting $11.35. 3,526,458 shares of the stock traded hands, compared to its average volume of 1,368,708. Driven Brands has a one year low of $9.80 and a one year high of $19.74. The stock has a market cap of $1.87 billion, a price-to-earnings ratio of -9.16, a P/E/G ratio of 1.21 and a beta of 1.04. The company has a 50 day simple moving average of $15.73 and a 200 day simple moving average of $15.85. The company has a current ratio of 0.90, a quick ratio of 0.80 and a debt-to-equity ratio of 2.44.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on DRVN shares. William Blair upgraded shares of Driven Brands from a “market perform” rating to an “outperform” rating in a report on Wednesday, December 3rd. Morgan Stanley lowered their target price on Driven Brands from $20.00 to $17.00 and set an “equal weight” rating on the stock in a report on Thursday, January 15th. Wall Street Zen downgraded Driven Brands from a “buy” rating to a “hold” rating in a research report on Saturday, December 13th. BTIG Research reissued a “buy” rating and issued a $21.00 price objective on shares of Driven Brands in a research report on Thursday, January 8th. Finally, Stifel Nicolaus set a $23.00 price objective on shares of Driven Brands in a research note on Monday, November 17th. Five investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $20.56.

Insider Activity at Driven Brands

In related news, insider Scott L. O’melia sold 46,875 shares of the firm’s stock in a transaction on Wednesday, January 21st. The stock was sold at an average price of $16.00, for a total transaction of $750,000.00. Following the completion of the sale, the insider directly owned 326,944 shares of the company’s stock, valued at $5,231,104. This trade represents a 12.54% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 3.50% of the stock is owned by insiders.

Institutional Trading of Driven Brands

A number of hedge funds and other institutional investors have recently made changes to their positions in DRVN. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Driven Brands by 4.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,597 shares of the company’s stock worth $610,000 after buying an additional 1,493 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of Driven Brands by 22.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 139,321 shares of the company’s stock valued at $2,388,000 after purchasing an additional 25,806 shares in the last quarter. New York State Common Retirement Fund increased its holdings in shares of Driven Brands by 10.0% in the second quarter. New York State Common Retirement Fund now owns 16,511 shares of the company’s stock valued at $290,000 after purchasing an additional 1,500 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in Driven Brands by 95.4% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 255,156 shares of the company’s stock worth $4,481,000 after purchasing an additional 124,556 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its holdings in Driven Brands by 744.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,103 shares of the company’s stock worth $37,000 after buying an additional 1,854 shares in the last quarter. 77.08% of the stock is currently owned by institutional investors and hedge funds.

Key Driven Brands News

Here are the key news stories impacting Driven Brands this week:

• Positive Sentiment: Company still reports positive return on equity (25.31%) and maintained the same quarterly EPS year‑over‑year ($0.30), and some sell‑side forecasts still anticipate FY EPS. These factors could limit longer‑term downside if management fixes accounting issues and execution stabilizes. MarketBeat Earnings Summary
• Neutral Sentiment: Quarterly results marginally missed expectations — $0.30 EPS vs. $0.32 consensus and $457.33M revenue vs. $459.5M estimate — a modest operational miss rather than a large shock. Investors will focus on management commentary when results are refiled. MarketBeat Earnings Summary
• Negative Sentiment: Driven Brands delayed its fourth‑quarter and full‑year results and announced it will restate prior financials — a major governance/controls concern that typically leads to loss of confidence and higher legal/adjustment risk. TipRanks: Delay Announcement
• Negative Sentiment: Stock suffered a large intraday drop (reported ~30% on earlier session) after the company called off an earnings release — large selloffs compound short‑term volatility and can trigger margin selling. InsiderMonkey: Nosedive Coverage
• Negative Sentiment: Multiple law firms and securities litigators have opened investigations into Driven Brands over potential misstatements and the restatement (Glancy Prongay Wolke & Rotter, Ademi LLP, Rosen Law, Holzer & Holzer, others). This raises the prospect of class actions, regulatory scrutiny, and legal costs. BusinessWire: Glancy Investigation GlobeNewswire: Ademi LLP
• Negative Sentiment: Market technicals and balance‑sheet caution: elevated debt-to-equity (~2.44) and sub‑1 current/quick ratios increase sensitivity to near‑term cash flow disruption if legal or operational setbacks persist. This magnifies risk while financials are being restated. MarketBeat: Financial Metrics

About Driven Brands

Driven Brands Holdings Inc (NASDAQ: DRVN) is a leading North American provider of automotive aftermarket services, operating through a network of franchised and company-owned locations. The company’s platform encompasses a diverse portfolio of car care and maintenance brands, including Meineke Car Care Centers, Maaco Collision Repair & Auto Painting, Take 5 Oil Change, and Carstar Collision Repair. Driven Brands delivers a full range of services from routine maintenance and oil changes to collision repair, paint protection, and vehicle customization.

Headquartered in Charlotte, North Carolina, Driven Brands serves both individual consumers and commercial clients across the United States and Canada.