Driven Brands (NASDAQ:DRVN) Shares Up 10.1% on Earnings Beat

Driven Brands Holdings Inc. (NASDAQ:DRVN)’s stock price traded up 10.1% during mid-day trading on Monday after the company announced better than expected quarterly earnings. The stock traded as high as $11.85 and last traded at $11.8350. 2,511,345 shares changed hands during trading, an increase of 49% from the average session volume of 1,685,997 shares. The stock had previously closed at $10.75.

The company reported $0.30 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.29 by $0.01. The business had revenue of $457.33 million during the quarter, compared to the consensus estimate of $459.50 million. Driven Brands had a positive return on equity of 25.31% and a negative net margin of 9.14%.During the same quarter in the previous year, the business earned $0.30 EPS.

Key Driven Brands News

Here are the key news stories impacting Driven Brands this week:

• Neutral Sentiment: Short-interest data reported for March is internally inconsistent (zeros/NaN), so it does not provide a clear signal about rising short-selling or cover pressure; treat the short-interest report as unreliable for now.
• Neutral Sentiment: Market analysis pieces are re-pricing the stock given the accounting-review concerns and recent share weakness, prompting some investors to reassess valuation and downside risk. A Look At Driven Brands Holdings (DRVN) Valuation After Recent Share Price Weakness And Accounting Review Concerns
• Negative Sentiment: Hagens Berman and other notices cite the company’s disclosure that its financial statements for the past two fiscal years “can no longer be relied upon,” and say the accounting revelation preceded an ~ $800M market-cap wipeout — a major credibility hit that supports continued downside risk and legal exposure. DRVN ALERT: Hagens Berman Notifies Driven Brands (DRVN) Investors to Securities Class Action Following $800M Market Cap Wipeout
• Negative Sentiment: Multiple plaintiff firms (Rosen, Faruqi & Faruqi, Scott+Scott, Levi & Korsinsky, Kessler Topaz, BFA, Schall, DJS, RGRD, Howard G., etc.) have filed or are soliciting lead-plaintiff applicants for a securities class action covering May 9, 2023–Feb 24, 2026, with a May 8, 2026 deadline — a sign of broad litigation interest that raises potential legal costs and distraction for management. Representative filing/notice: DRVN CLASS ACTION NOTICE: Faruqi & Faruqi, LLP Reminds Driven Brands Holdings (DRVN) Investors of Securities Class Action Deadline on May 8, 2026
• Negative Sentiment: Several notices emphasize alleged concealment of financial reporting failures and internal control lapses that allegedly caused a near-40% share decline; that narrative increases the odds of costly settlements, potential restatements and prolonged uncertainty. Example: $DRVN Investment Loss: Lose Money on Driven Brands? You may have been Affected by Securities Fraud and are Notified to Contact BFA Law

Analyst Ratings Changes

A number of equities research analysts recently commented on the company. Wall Street Zen lowered Driven Brands from a “buy” rating to a “hold” rating in a research report on Saturday, December 13th. Morgan Stanley cut their price objective on shares of Driven Brands from $20.00 to $17.00 and set an “equal weight” rating on the stock in a report on Thursday, January 15th. Piper Sandler downgraded shares of Driven Brands from an “overweight” rating to a “neutral” rating and lowered their target price for the company from $19.00 to $12.00 in a report on Wednesday, February 25th. William Blair raised shares of Driven Brands from a “market perform” rating to an “outperform” rating in a research report on Wednesday, December 3rd. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Driven Brands in a report on Monday, December 29th. Five equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Driven Brands presently has a consensus rating of “Hold” and a consensus target price of $20.00.

Insider Buying and Selling

In other Driven Brands news, insider Scott L. O’melia sold 46,875 shares of the business’s stock in a transaction on Wednesday, January 21st. The stock was sold at an average price of $16.00, for a total value of $750,000.00. Following the transaction, the insider owned 326,944 shares of the company’s stock, valued at approximately $5,231,104. The trade was a 12.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 2.30% of the company’s stock.

Institutional Investors Weigh In On Driven Brands

A number of hedge funds have recently made changes to their positions in DRVN. Western Standard LLC increased its holdings in Driven Brands by 69.3% during the third quarter. Western Standard LLC now owns 693,413 shares of the company’s stock worth $11,171,000 after buying an additional 283,736 shares during the last quarter. Advisory Research Inc. purchased a new position in Driven Brands in the third quarter valued at about $10,725,000. Elgethun Capital Management purchased a new position in Driven Brands in the third quarter valued at about $8,137,000. North Peak Capital Management LLC grew its position in shares of Driven Brands by 9.0% during the 2nd quarter. North Peak Capital Management LLC now owns 7,123,075 shares of the company’s stock valued at $125,081,000 after acquiring an additional 589,556 shares during the period. Finally, Simcoe Capital Management LLC purchased a new stake in shares of Driven Brands during the 3rd quarter worth approximately $33,911,000. 77.08% of the stock is currently owned by institutional investors.

Driven Brands Stock Performance

The company has a debt-to-equity ratio of 2.44, a quick ratio of 0.80 and a current ratio of 0.90. The company has a market cap of $1.92 billion, a PE ratio of -9.40 and a beta of 1.09. The company’s 50 day moving average price is $14.19 and its 200-day moving average price is $14.95.

About Driven Brands

Driven Brands Holdings Inc (NASDAQ: DRVN) is a leading North American provider of automotive aftermarket services, operating through a network of franchised and company-owned locations. The company’s platform encompasses a diverse portfolio of car care and maintenance brands, including Meineke Car Care Centers, Maaco Collision Repair & Auto Painting, Take 5 Oil Change, and Carstar Collision Repair. Driven Brands delivers a full range of services from routine maintenance and oil changes to collision repair, paint protection, and vehicle customization.

Headquartered in Charlotte, North Carolina, Driven Brands serves both individual consumers and commercial clients across the United States and Canada.