DRVN Stock Forecast & Price Target

Driven Brands Holdings Inc. is experiencing strong performance across multiple segments, particularly with Take 5, which reported a notable 6.6% same-store sales growth in Q2 2025 and has achieved consistent positive growth over the past 20 quarters. The company's strategic plan to open 170 new Take 5 locations this year indicates robust expansion potential, which is underscored by a significant increase in vehicle services at mature stores, rising from 44.6 per day in 2018 to 52.9 in 2022. Additionally, Driven Brands' financial maneuvering, including the prepaid securitized notes with a 5.296% coupon and improved attach rates from mid-to-high 40s last quarter to the low 50s, reinforces its solid footing and positive outlook within the automotive services market.

Driven Brands Holdings Inc. is facing a negative outlook primarily due to reduced financial projections resulting from a lowered target multiple for its core oil change segment, which has seen a decline of approximately 20% among peers. The company reported challenges stemming from a decrease in discretionary spending among lower-income consumers and a prolonged downturn in the collision industry, reflecting estimates that are now showing a high-single-digit percentage decline. Additionally, Driven Brands anticipates that the divestiture of its IMO segment will adversely affect its FY25 same-store sales growth, pushing it to the lower end of its previously projected range and potentially leading to a negative comparable sales figure in the fourth quarter.