Driven Brands Holdings saw its net income decline 36.6% to $34.25 million for the second quarter of 2026. However, in terms of adjusted net income, the year-over-year decrease was 1.5%. And, adjusted EBITDA was down 6.9% when compared to a year ago.
Meanwhile, the company’s total net revenue rose 6.8% to $507.42 million for the quarter.
Total consolidated same-store sales increased 1.4% on top of a 1.0% gain a year ago, giving the company a two-year stack of +2.4%. It’s worth noting that every segment reported positive same-store sales growth for the quarter.
Total system-wide sales increased 4.9% to $1.63 billion, which the company attributed to an approximately 1.0% increase in same-store sales and a roughly 5.0% increase in store count versus the prior year.
TAKE 5 … Take 5’s net revenue increased by $30.60 million (or 10.1%) to $334.82 million in the second quarter, primarily attributable to same-store sales growth as well as new locations. Additionally, supply and “other” revenue rose roughly 24.0%, and franchise royalties and fees increased about 23.0%.
Same-store sales grew 3.6% on top of a 6.6% gain a year ago, giving Take 5 a two-year stack of +10.2%. Notably, the segment has now turned in 24 consecutive quarters of positive same-store sales growth. It also should be pointed out that Take 5’s same-store sales growth of 3.6% moderated from 6.6% in the prior-year period, which the company mainly attributed to effect of inflationary pressures on lower-income consumers.
System-wide sales rose 13.2% to $460.21 million.
Take 5’s segment adjusted EBITDA grew 7.8% to $114.88 million, largely driven by net revenue tied to more shops and same-store sales growth. However, the segment’s adjusted EBITDA margin slipped from 35.0% to 34.3% on a year-over-year basis.
The Take 5 segment is primarily composed of Take 5 Oil, which services a combination of retail and commercial customers, such as fleet operators. Services include oil changes and automotive maintenance enhancements, including differential fluid exchanges, coolant services, and air and cabin filters.
The team opened 50 net new Take 5 shops during the second quarter (of which 24 were franchised units) and has grown the business by more than 175 locations over the past 12 months, ending the quarter with more than 1,400 Take 5 shops.
President and CEO Danny Rivera told analysts on Driven’s Aug. 6 earnings call the Take 5 model continues to resonate with customers.
“Our net promoter scores remain in the mid-70s, and we continue to see meaningful contribution from our non-oil change services, which represented almost 30% of Take 5 sales for the quarter,” Rivera commented. “Our new unit pipeline remains robust at approximately 800 locations — more than a third of which are site-secured or further along. And, we remain committed to opening 150 or more units annually as we progress toward our long-term goal of more than 2,500 total locations.”
He also addressed traffic and the segment’s consumers.
“[Take 5’s] lower-income consumer was moderating in Q1. We were pretty transparent about that early on, and we’ve seen that moderation continue into Q2,” Rivera said. “A couple of things to say about that. I would say, No. 1, I haven’t seen it get worse, so it’s stabilized there.
“No. 2, when we look at the rest of the customer cohorts, we’re seeing resilience. Average check is up. Premium mix for us continues to be in the low 90s. Attachments are into the high 50s. So, generally speaking, what I would say is that lower-income consumer continues to be moderating so to speak, but it has stabilized. And, we see strength with the rest of our consumer base.”
FRANCHISE BRANDS … Franchise Brands’ net revenue decreased by $3.38 million (or 4.6%) to $69.60 million for the quarter, tied to the sale of the two remaining company-operated collision locations in the first quarter of 2026 as well as a roughly $2.00 million (or approximately 6.0%) decrease in supply and “other” revenue. This was partially offset by an increase in franchise system-wide sales.
Same-store sales increased 0.5% up against a 1.4% decrease a year giving, giving Franchise Brands a two-year stack of -0.9%.
System-wide sales grew 1.9% to $1.10 billion.
Franchise Brands’ segment adjusted EBITDA declined 5.5% to $41.16 million, primarily driven by increased technology costs. And, its segment adjusted EBITDA margin decreased from 59.7% to 59.1% year over year.
The Franchise Brands segment is primarily composed of the following brands …
• Meineke.
• Maaco.
• Carstar.
• ABRA.
• Fix Auto.
• 1-800 Radiator.
• Uniban.
• Automotive Training Institute.
“[The Franchise Brands segment] did exactly what it is designed to do: generate reliable, high-margin cash flow,” Rivera said on the call. “Same-store sales increased 0.5%, and the segment delivered strong adjusted EBITDA margins of 59.0%.
“Performance was led by continued strength at Meineke. In collision, while the broader industry remained under pressure, we continued to outperform, taking share and running approximately 200 basis points ahead of the industry. Maaco, our most discretionary brand, also remained under pressure, consistent with the trends we have previously discussed. Even so, this segment continues to be a dependable source of cash that funds our growth.”
He also told analysts that he sees no reason that Meineke will not have a strong back half to the year.
AUTO GLASS NOW … Auto Glass Now’s net revenue grew by $1.71 million (or 2.4%) to $72.89 million, attributable to an increase in same-store sales.
Same-store sales increased 2.6% on top of an 11.2% rise a year ago, giving Auto Glass Now a two-year stack of +13.8%.
System-wide sales grew 2.1% to $72.69 million.
Meanwhile, Auto Glass Now’s segment adjusted EBITDA fell 65.5% to $3.48 million, driven primarily by …
• Out-of-period adjustments of roughly $4.00 million related to the under-accrual of vendor invoices in prior periods.
• Increased variable costs directly associated with increased company-operated store sales.
• Marketing expenses as the company focused on growing brand awareness.
This was partially offset by same-store sales growth.
Auto Glass Now’s segment adjusted EBITDA margin declined from 14.2% to 4.8% on a year-over-year basis.
The Auto Glass Now segment provides auto glass repair, replacement and calibration services to commercial, retail and insurance customers within the United States as well as third-party administration and claims management services to commercial and insurance customers.
LOOKING AHEAD … Management reiterated its full-year guidance calling for revenue to come in between $1.95 billion and $2.05 billion and for adjusted EBITDA to come in between $430 million and $460 million (likely at the low end of this outlook range).
Full-year same-store sales are forecast to come in somewhere between flat and up 2.0%.
“We expect current trends to continue in the back half of the year,” Mike Diamond, executive vice president and CFO, told analysts on the call. “For Take 5, we expect softness from lower-income consumers will continue to pressure sales growth. We expect Franchise Brands to continue with flat to modestly positive growth in same-store sales, given the ongoing softness in Maaco and modest normalization in collision.”
2026 net new store growth is projected to be between 160 and 190 locations.
Rivera said management’s strategy remains consistent: drive strong growth through Take 5 and generate reliable free cash flow from Franchise Brands. “That combination of growth and cash allows us to invest in our highest-return opportunities while continuing to strengthen the business,” he added.
Rivera also remarked that the operating environment remains dynamic and is being shaped by several factors, starting with a K-shaped economy in which lower-income households remain under significant pressure.
“Moreover, renewed conflict in the Middle East has disrupted energy markets, driving volatility in oil prices and supply and pushing gas prices higher, which weighs directly on consumers and demand,” he said. “While the broader industry is facing supply chain pressure, our scale and strong supplier relationships mean we do not foresee near-term supply concerns — absent a significant change in conditions.
“Our largely nondiscretionary portfolio is built to perform in exactly this kind of environment. That said, resilient does not mean impervious, so we’re approaching the back half of the year with caution and a disciplined focus on execution.” — Reporting by Marc Vincent, Editor
