III Capital Management Sells Driven Brands Shares Amidst Recovery Signs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Fool
- Share Sale Details: III Capital Management disclosed the sale of 255,860 shares of Driven Brands in Q1 2026, valued at approximately $3.60 million, indicating a cautious stance towards the company's future performance.
- Value Decline: The fund's stake in Driven Brands decreased by $3.96 million, reflecting ongoing credibility issues following a lengthy accounting restatement process, despite signs of business stabilization.
- Financial Performance Overview: Driven Brands reported $1.86 billion in revenue for fiscal 2025, a 6% year-over-year increase, with adjusted EBITDA reaching $449 million, highlighting the growth potential of its core operations.
- Future Outlook: Management anticipates same-store sales growth for Take 5 between 4.3% and 4.5% in Q1 2026, with projected free cash flow of up to $145 million for the year, indicating efforts to restore investor confidence.
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Analyst Views on DRVN
Wall Street analysts forecast DRVN stock price to rise
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 13.480
Low
17.00
Averages
21.14
High
24.00
Current: 13.480
Low
17.00
Averages
21.14
High
24.00
About DRVN
Driven Brands Holdings Inc. is an automotive services company in North America, providing a range of consumer and commercial automotive services, including paint, collision, glass, vehicle repair, oil change and maintenance. The Company's segments include Take 5 and Franchise Brands. The Take 5 segment is primarily composed of the Company and franchise-operated Take 5 Oil Change business. The Franchise Brands segment is primarily composed of its portfolio of franchise brands, which include CARSTAR, Meineke Car Care Centers, Maaco and 1-800-Radiator & A/C, along with other smaller brands and services for both retail and commercial customers such as commercial fleet operators and insurance carriers. Its AutoGlassNow businesses provide glass replacement and calibration services to commercial, retail and insurance customers. Its subsidiaries include All Star Glass, LLC, AGN Glass, LLC, Carstar Canada GP Corp, Boing US Holdco, Inc, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
III Capital Management Sells Driven Brands Shares
- Share Sale Details: III Capital Management sold 255,860 shares of Driven Brands in Q1, with an estimated transaction value of $3.60 million, reflecting a $3.96 million decline in the company's holding value at quarter-end, indicating market skepticism about the stock.
- Asset Management Impact: This sale represented roughly 1% of III Capital Management's reportable U.S. equity assets under management, suggesting a strategic portfolio adjustment to mitigate risk, even as Driven Brands' underlying business shows signs of stabilization.
- Financial Performance Analysis: Driven Brands reported fiscal 2025 revenue of $1.86 billion, a 6% year-over-year increase, with adjusted EBITDA at $449 million, highlighting the effectiveness of its multi-brand strategy, particularly the sustained growth of Take 5 Oil Change.
- Future Outlook: Management anticipates Take 5's same-store sales growth to be between 4.3% and 4.5% in Q1 2026, although the company still needs to demonstrate that improved financial reporting and execution can restore investor confidence.
See More
III Capital Management Sells Driven Brands Shares Amidst Recovery Signs
- Share Sale Details: III Capital Management disclosed the sale of 255,860 shares of Driven Brands in Q1 2026, valued at approximately $3.60 million, indicating a cautious stance towards the company's future performance.
- Value Decline: The fund's stake in Driven Brands decreased by $3.96 million, reflecting ongoing credibility issues following a lengthy accounting restatement process, despite signs of business stabilization.
- Financial Performance Overview: Driven Brands reported $1.86 billion in revenue for fiscal 2025, a 6% year-over-year increase, with adjusted EBITDA reaching $449 million, highlighting the growth potential of its core operations.
- Future Outlook: Management anticipates same-store sales growth for Take 5 between 4.3% and 4.5% in Q1 2026, with projected free cash flow of up to $145 million for the year, indicating efforts to restore investor confidence.
See More
III Capital Management Sells Driven Brands Shares Amidst Stock Struggles
- Share Sale Details: III Capital Management sold 255,860 shares of Driven Brands in Q1 2026 for an estimated $3.60 million, indicating a cautious outlook on the company's future performance despite a 6% year-over-year revenue growth.
- Shareholder Value Decline: The sale resulted in a $3.96 million decrease in the value of III's Driven Brands stake, reflecting a 22% drop in the stock price over the past year, significantly underperforming the S&P 500's 28% gain, suggesting a lack of market confidence in the company.
- Financial Performance Overview: Driven Brands reported $1.86 billion in revenue for fiscal 2025 with an adjusted EBITDA of $449 million, yet it faced a net loss of $140.2 million, highlighting ongoing challenges in profitability despite revenue growth.
- Future Outlook and Growth Potential: Management anticipates same-store sales growth of 4.3% to 4.5% for Take 5 in Q1 2026 and forecasts up to $145 million in free cash flow for the year, although the company must demonstrate improved financial transparency and execution to regain investor confidence.
See More
ADW Capital Acquires Stake in Driven Brands
- New Investment Disclosure: ADW Capital disclosed a new stake in Driven Brands by acquiring 4 million shares in Q1 2026, with an estimated trade value of $56.31 million, indicating confidence in the company's future potential.
- Asset Management Change: This transaction resulted in a 21.9% change in ADW Capital's 13F reportable assets under management (AUM), reflecting its focus on Driven Brands and signaling market interest.
- Financial Performance Highlights: Driven Brands achieved a 6% revenue increase in 2025, reaching $1.86 billion, while adjusted EBITDA rose to $449 million, showcasing its strong performance in the automotive aftermarket sector.
- Future Outlook: The 2026 guidance projects revenue between $1.95 billion and $2.05 billion, with free cash flow up to $145 million, suggesting that sustained growth could provide long-term investors with attractive opportunities.
See More
ADW Capital Management Acquires Driven Brands Shares
- New Investment Disclosure: On May 15, 2026, ADW Capital Management disclosed a new position by acquiring 4 million shares of Driven Brands, valued at approximately $56.31 million, indicating confidence in the company's future potential despite recent challenges.
- Holding Value Fluctuation: At quarter-end, the value of Driven Brands' holdings was $50.44 million, reflecting the impact of both the acquisition and stock price movements, showcasing investor confidence in the long term despite a nearly 30% drop in stock price over the past year.
- Financial Performance Highlights: Driven Brands reported a 6% revenue increase to $1.86 billion in 2025, with adjusted EBITDA reaching $449 million, indicating strong growth potential in its core business, particularly with the Take 5 oil change service achieving 22 consecutive quarters of same-store sales growth.
- Future Outlook: The company’s 2026 guidance projects revenue between $1.95 billion and $2.05 billion, with potential free cash flow of up to $145 million; if it can sustain growth and improve its balance sheet, today's valuation may be viewed more favorably in hindsight.
See More
Driven Brands Reports Strong Q4 Earnings Exceeding Estimates
- Earnings Beat: Driven Brands Holdings Inc reported strong Q4 earnings that exceeded analyst estimates, demonstrating the company's resilience and growth potential in a competitive market.
- Analyst Ratings Stable: Despite the strong performance, analysts lowered their price targets while maintaining buy ratings, indicating confidence in the company's future growth prospects.
- Positive Market Reaction: The robust earnings report is likely to boost investor confidence, potentially driving the stock price higher and strengthening the company's position in a competitive landscape.
- Need for Strategic Adjustments: The analysts' price target reductions suggest that the company may need to implement strategic adjustments in the future to adapt to market changes and sustain growth.
See More
III Capital Management Sells Driven Brands Shares
- Share Sale Details: III Capital Management sold 255,860 shares of Driven Brands in Q1, with an estimated transaction value of $3.60 million, reflecting a $3.96 million decline in the company's holding value at quarter-end, indicating market skepticism about the stock.
- Asset Management Impact: This sale represented roughly 1% of III Capital Management's reportable U.S. equity assets under management, suggesting a strategic portfolio adjustment to mitigate risk, even as Driven Brands' underlying business shows signs of stabilization.
- Financial Performance Analysis: Driven Brands reported fiscal 2025 revenue of $1.86 billion, a 6% year-over-year increase, with adjusted EBITDA at $449 million, highlighting the effectiveness of its multi-brand strategy, particularly the sustained growth of Take 5 Oil Change.
- Future Outlook: Management anticipates Take 5's same-store sales growth to be between 4.3% and 4.5% in Q1 2026, although the company still needs to demonstrate that improved financial reporting and execution can restore investor confidence.
See More
III Capital Management Sells Driven Brands Shares Amidst Recovery Signs
- Share Sale Details: III Capital Management disclosed the sale of 255,860 shares of Driven Brands in Q1 2026, valued at approximately $3.60 million, indicating a cautious stance towards the company's future performance.
- Value Decline: The fund's stake in Driven Brands decreased by $3.96 million, reflecting ongoing credibility issues following a lengthy accounting restatement process, despite signs of business stabilization.
- Financial Performance Overview: Driven Brands reported $1.86 billion in revenue for fiscal 2025, a 6% year-over-year increase, with adjusted EBITDA reaching $449 million, highlighting the growth potential of its core operations.
- Future Outlook: Management anticipates same-store sales growth for Take 5 between 4.3% and 4.5% in Q1 2026, with projected free cash flow of up to $145 million for the year, indicating efforts to restore investor confidence.
See More
III Capital Management Sells Driven Brands Shares Amidst Stock Struggles
- Share Sale Details: III Capital Management sold 255,860 shares of Driven Brands in Q1 2026 for an estimated $3.60 million, indicating a cautious outlook on the company's future performance despite a 6% year-over-year revenue growth.
- Shareholder Value Decline: The sale resulted in a $3.96 million decrease in the value of III's Driven Brands stake, reflecting a 22% drop in the stock price over the past year, significantly underperforming the S&P 500's 28% gain, suggesting a lack of market confidence in the company.
- Financial Performance Overview: Driven Brands reported $1.86 billion in revenue for fiscal 2025 with an adjusted EBITDA of $449 million, yet it faced a net loss of $140.2 million, highlighting ongoing challenges in profitability despite revenue growth.
- Future Outlook and Growth Potential: Management anticipates same-store sales growth of 4.3% to 4.5% for Take 5 in Q1 2026 and forecasts up to $145 million in free cash flow for the year, although the company must demonstrate improved financial transparency and execution to regain investor confidence.
See More
ADW Capital Acquires Stake in Driven Brands
- New Investment Disclosure: ADW Capital disclosed a new stake in Driven Brands by acquiring 4 million shares in Q1 2026, with an estimated trade value of $56.31 million, indicating confidence in the company's future potential.
- Asset Management Change: This transaction resulted in a 21.9% change in ADW Capital's 13F reportable assets under management (AUM), reflecting its focus on Driven Brands and signaling market interest.
- Financial Performance Highlights: Driven Brands achieved a 6% revenue increase in 2025, reaching $1.86 billion, while adjusted EBITDA rose to $449 million, showcasing its strong performance in the automotive aftermarket sector.
- Future Outlook: The 2026 guidance projects revenue between $1.95 billion and $2.05 billion, with free cash flow up to $145 million, suggesting that sustained growth could provide long-term investors with attractive opportunities.
See More
ADW Capital Management Acquires Driven Brands Shares
- New Investment Disclosure: On May 15, 2026, ADW Capital Management disclosed a new position by acquiring 4 million shares of Driven Brands, valued at approximately $56.31 million, indicating confidence in the company's future potential despite recent challenges.
- Holding Value Fluctuation: At quarter-end, the value of Driven Brands' holdings was $50.44 million, reflecting the impact of both the acquisition and stock price movements, showcasing investor confidence in the long term despite a nearly 30% drop in stock price over the past year.
- Financial Performance Highlights: Driven Brands reported a 6% revenue increase to $1.86 billion in 2025, with adjusted EBITDA reaching $449 million, indicating strong growth potential in its core business, particularly with the Take 5 oil change service achieving 22 consecutive quarters of same-store sales growth.
- Future Outlook: The company’s 2026 guidance projects revenue between $1.95 billion and $2.05 billion, with potential free cash flow of up to $145 million; if it can sustain growth and improve its balance sheet, today's valuation may be viewed more favorably in hindsight.
See More
Driven Brands Reports Strong Q4 Earnings Exceeding Estimates
- Earnings Beat: Driven Brands Holdings Inc reported strong Q4 earnings that exceeded analyst estimates, demonstrating the company's resilience and growth potential in a competitive market.
- Analyst Ratings Stable: Despite the strong performance, analysts lowered their price targets while maintaining buy ratings, indicating confidence in the company's future growth prospects.
- Positive Market Reaction: The robust earnings report is likely to boost investor confidence, potentially driving the stock price higher and strengthening the company's position in a competitive landscape.
- Need for Strategic Adjustments: The analysts' price target reductions suggest that the company may need to implement strategic adjustments in the future to adapt to market changes and sustain growth.
See More
