For the second quarter of 2025, Driven Brands Holdings reported $1.62 billion in total system-wide sales (up 3.1% compared to a year ago) and $550.99 million in total net revenue (up 6.2%).
Consolidated same-store sales increased 1.7%. It was the company’s 18th consecutive quarter of same-store sales growth.
Meanwhile, the company’s net income rose 57.7% to $47.56 million, and its adjusted EBITDA decreased 0.1% to $143.24 million.
TAKE 5 OIL CHANGE … Take 5’s system-wide sales rose 17.2% to $406.57 million. Same-store sales increased 6.6% on top of a 5.7% gain a year ago for a two-year stack of +12.3%. It was Take 5’s 20th consecutive quarter of same-store sales growth.
Take 5’s segment adjusted EBITDA grew 9.9% to $108.15 million, primarily due to net new shop growth and same-store sales growth. However, its segment adjusted EBITDA margin decreased from 37.1% to 35.6% on a year-over-year basis.
“We’re seeing a meaningful contribution from our non-oil change revenue, which accounted for more than 20% of Take 5 sales for the quarter, driven by continued strong attachment rates,” President and CEO Danny Rivera said on Driven’s Aug. 5 earnings call. “As part of our strategy to grow non-oil change revenue and expand our service offerings, we began piloting the replacement of a vehicle’s differential fluid last year.
“Today, that service is fully rolled out across all company-owned locations and roughly half of our franchise locations, with full rollout expected by the end of Q3. This brings our total number of non-oil services to six — all designed to fit seamlessly within our fast, friendly, simple stay-in-your-car model.”
The Take 5 segment added 41 net new shops during the quarter, of which 24 were company-operated locations and 17 were franchise-operated shops.
FRANCHISE BRANDS … Franchise Brands’ system-wide sales decreased 2.5% to $1.08 billion for the quarter, and its same-store sales decreased 1.5% up against a 0.8% gain a year ago for a two-year stack of -0.7%.
Franchise Brands’ segment adjusted EBITDA declined 16.2% to $45.44 million, mainly because of negative same-store sales growth that were predominantly related to lower volume. And, its segment adjusted EBITDA margin decreased from 66.9% to 60.9% year over year.
The Franchise Brands segment is primarily composed of CARSTAR, Meineke, Maaco and 1-800 Radiator, along with other smaller brands and services for both retail and commercial customers.
“We continue to see year-over-year softness in both our collision business and Maaco,” Rivera said on the call. “In collision, the broader industry remains under pressure, but we’re encouraged by Driven’s continued market share gains. Maaco showed sequential improvement this quarter, though it remains down versus the prior year, due primarily to a pullback in discretionary spending among lower-income consumers.
“While we’re pleased with our market share gains in collision and Maaco’s quarter-over-quarter progress, we anticipate ongoing softness in both for the remainder of the year.”
Franchise Brands added 13 net new units in the quarter.
CAR WASH … The Car Wash segment’s system-wide sales rose 19.1% to $71.79 million, and its same-store sales increased 19.4% on top of a 1.8% decrease a year ago for a two-year stack of +17.6.
Car Wash’s segment adjusted EBITDA grew 22.9% to $27.30 million, mostly attributable to same-store sales growth. Its segment adjusted EBITDA margin increased from 36.0% to 37.2% year over year.
The Car Wash segment operates under the IMO brand across Europe and Australia, providing express-style conveyor car wash services to both retail and commercial customers.
“We are thrilled with the performance of our Car Wash segment,” Rivera stated, “but expect the performance to moderate in the back half of the year.”
LOOKING AHEAD … Management reaffirmed its financial outlook for 2025, which includes …
• $2.05 billion to $2.15 billion in revenue.
• Same-store sales growth of 1.0% to 3.0%.
• Adjusted EBITDA of $520 million to $550 million.
• Net store growth of 175 to 200 units.
“While declining consumer sentiment has the potential to adversely impact our performance, our business model remains resilient overall,” CFO Mike Diamond told analysts on the call. “We saw this resilience play out in Q2 with strong, albeit moderating, growth in Take 5 and sequential improvement in our Franchise Brands segment, despite some limited pullback from our lowest-income consumers and ongoing challenges in the end markets of our Franchise Brands segment.
“As mentioned last quarter, we believe we are well-positioned for any potential tariff impacts, thanks to our strong supply chain team and geographically diversified supply chain.” — Reporting by Marc Vincent, Editor
