Financial Restatement Getting Cleaned Up, But Now Take 5 Is Slowing

Research evidence excerpt

Financial Restatement Getting Cleaned Up, But Now Take 5 Is Slowing

C O M PA N Y N O T E

M a y 1 9 , 2 0 2 6

Driven Brands Holdings, Inc. (DRVN) Neutral

CONCLUSION PRICE: US$13.23

We remain on the sidelines with DRVN and raise our PT to $13 (9x 2027E EPS) following TARGET: US$13.00

the long-awaited Q4 results. Though it will likely take some time for the company to 9x 2027E EPS

rebuild trust with investors following its restatements, it clearly articulated reasons for the

accounting errors - and management has taken steps to upgrade numerous people across Peter J. Keith

Sr Research Analyst, Piper Sandler & Co.the finance team while leveraging the company's Oracle ERP system, which was installed in 212 284-5040, peter.keith@psc.com

late 2024 and helped in finding the accounting errors. The EBITDA adjustment to 2025 was

Alexia Morgan

only $8M. For fundamentals, 2026 guidance was set below expectations due to ~$40M of Research Analyst, Piper Sandler & Co.

one-time expenses related to the restatement. Also, Take 5, the company's primary growth 212 284-9551, alexia.morgan@psc.com

engine, saw comp moderation in early 2026 from the economic environment. For our PT we Sarah Morin

raise our multiple slightly to 9x (previously 8x) on greater confidence in DRVN financials. Research Analyst, Piper Sandler & Co.

312 281-3446, sarah.morin@psc.com

• What Happened? DRVN reported Q4 EPS of $0.34 vs. consensus of $0.24. Revenue Changes Previous Current

of $460.1M came in ahead of Street expectations for $454.9M and at the high-end of Rating — Neutral

preliminary numbers $450-460M, driven by comp growth of +0.5% (vs. cons of +0.4% Price Tgt US$11.00 US$13.00

and inline with preliminary figures). Adj. EBITDA of $111.9M also came in slightly ahead FY26E Rev (mil) US$2,015.0 US$1,999.6