Q1 Earnings Show Upside, But Take 5 Business Slowing

研报英文原文证据摘录

Q1 Earnings Show Upside, But Take 5 Business Slowing

C O M PA N Y N O T E

J u n e 1 1 , 2 0 2 6

Driven Brands Holdings, Inc. (DRVN) Neutral

CONCLUSION PRICE: US$13.54

We maintain our Neutral rating and $13 PT following Q1 results that showed upside TARGET: US$13.00

to estimates. While Q1 showed upside across key metrics, and full year guidance was 9x 2027E EPS

reiterated, DRVN guided Q2 below expectations. Part of the lower Q2 expectations were

on EBITDA margin due to higher restatement costs in Q2 (vs. Q1), and part was the Peter J. Keith

Sr Research Analyst, Piper Sandler & Co.expectations for lower comp growth across the 3 main business segments. Take 5 was 212 284-5040, peter.keith@psc.com

most notable with Q2 guidance for a mid-3% comp. Not only would this be the lowest comp

Alexia Morgan

growth for Take 5 in recent memory, but also represents a deceleration on a 2-year stack Research Analyst, Piper Sandler & Co.

basis as DRVN is seeing both lower income customers and newer customer churn out. 212 284-9551, alexia.morgan@psc.com

DRVN shares are cheap at 10.5x FTM EPS, but with a slowing Take 5 segment and sluggish Sarah Morin

Franchise Brands segment we don't see a catalyst near-term for valuation expansion. Research Analyst, Piper Sandler & Co.

347 573-3703, sarah.morin@psc.com

• What Happened? DRVN reported Q1 EPS of $0.30 vs. consensus of $0.24. Revenue Changes Previous Current

of $484.4M came in ahead of Street expectations for $480.8M and at the high-end of Rating — Neutral

preliminary numbers $475-485M, driven by comp growth of +2.1% (vs. cons of +2.0% Price Tgt — US$13.00

and also at the high end of preliminary figures). Adj. EBITDA of $104.1M was above FY26E Rev (mil) US$1,999.6 US$2,000.5

consensus estimates of $97.7M.