Driven Brands Holdings Inc. (NASDAQ: DRVN)

Driven Brands Holdings Inc. is the largest automotive services company in North America with a highly franchised base of approximately 5200 locations across 49 U. S. states and 13 other countries. The company provides high quality services to retail and commercial customers through a diversified portfolio of brands that cover paint collision glass repair oil change maintenance and car wash services. In 2024 the network generated approximately $2.3 billion in net revenue from about $6.5 billion in system wide sales. The firm leverages its scale to deliver consistent recurring revenue with strong operating margins.

Driven Brands Holdings Inc. generates revenue primarily from service sales at company operated and franchised locations including oil changes maintenance repairs paint collision glass and car wash services. The company also earns royalties and fees from franchisees based on a percentage of gross sales and receives income from the distribution of automotive parts through its parts distribution network. Additional revenue comes from training programs consumables supplies and technology enabled claims management services. The diversified service mix creates multiple streams of recurring income.

The company operates through the following segments: Maintenance Paint Collision & Glass Car Wash and Platform Services.

• The Maintenance segment provides oil changes and routine vehicle services through the Take 5 Oil and Meineke brands. Take 5 Oil operates drive thru oil change locations with both franchised and company owned units offering quick service to retail and commercial customers. Meineke offers total car care including maintenance repair and replacement of components such as brakes heating and cooling systems exhaust and tires through a predominantly franchised network.

• The Paint Collision & Glass segment encompasses paint services through Maaco collision repair through CARSTAR ABRA and Fix Auto and glass services through Uniban in Canada and AGN in the United States. Maaco provides affordable paint and cosmetic repairs for retail and fleet customers. The collision brands deliver full collision repair and refinishing through a largely franchised network. The glass businesses offer replacement repair and calibration of automotive glass and provide technology enabled claims management services for insurance carriers.

• The Car Wash segment operates express style conveyor car wash sites under the Take 5 Car Wash brand in the United States and the IMO brand internationally. The segment provides quick exterior washes using a conveyor belt system and includes a subscription membership program that drives high frequency of use. Locations are split between company operated units in the U. S. and independent operator models abroad.

• The Platform Services segment supports the brand network through parts distribution consumables supply e-commerce solutions and training services. The parts distribution business supplies long tail automotive parts to repair shops. The consumables supply business provides items such as oil filters and wiper blades to Take 5 Oil locations. The e-commerce solution offers a custom buying experience for franchisees. The training business delivers multi year programs to independent repair and maintenance and paint and collision shops.

Driven Brands Holdings Inc. holds a leading position in the North American automotive services market due to its scale brand diversification and integrated platform. The company competes against fragmented local and regional repair shops oil change chains car wash operators and parts distributors few of which offer the breadth of services across multiple categories that Driven Brands provides. Competitive advantages include a large geographic footprint strong brand recognition efficient operating models and the ability to leverage shared services procurement and data analytics to improve margins and franchisee economics.

Driven Brands Holdings Inc. serves a broad customer base that includes individual consumers fleet operators insurance carriers rental companies government agencies and automotive repair businesses. The company's retail customers seek convenient maintenance and appearance services while commercial clients rely on the network for fleet maintenance collision repair glass replacement and parts supply. The diversified service offering allows the firm to address both high frequency maintenance needs and occasional repair occasions.