second quarter 2026
Filed Aug 6, 2026Revenue increases 6.8% to $507.4 million with same store sales growth of 1.4%; Take 5 same store sales increase 3.6%; net leverage ratio improves to 3.1x Adjusted EBITDA; Company reiterates fiscal year 2026 outlook ranges
Revenue, system-wide sales, same store sales, and net income from continuing operations increased, while Adjusted EBITDA decreased 7% versus the prior year and the Company expects fiscal year 2026 Adjusted EBITDA at the low end of its outlook range.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total net revenueGAAP | $ 507,416 | – | 7% |
| Franchise royalties and feesGAAP | $ 51,662 | – | – |
| Company-operated store salesGAAP | $ 352,604 | – | – |
| Advertising contributionsGAAP | $ 30,098 | – | – |
| Supply and other revenueGAAP | $ 73,052 | – | – |
| System-wide salesother | $ 1,628.7 million | – | 5% |
| Total store countother | 4,323 | – | 5% |
| Total same store salesother | 1.4 % | – | – |
| Same store sales growth, narrativeother | 1% | – | – |
| Company-operated store expensesGAAP | $ 208,643 | – | – |
| Advertising expensesGAAP | $ 30,098 | – | – |
| Supply and other expensesGAAP | $ 43,764 | – | – |
| Selling, general, and administrative expensesGAAP | $ 129,704 | – | – |
| Depreciation and amortizationGAAP | $ 22,157 | – | – |
| Total operating expensesGAAP | $ 434,366 | – | – |
| Operating incomeGAAP | $ 73,050 | – | – |
| Interest expense, netGAAP | $ 20,791 | – | – |
| Foreign currency transaction loss (gain), netGAAP | $ 1,212 | – | – |
| Income before taxes from continuing operationsGAAP | $ 51,047 | – | – |
| Income tax expenseGAAP | $ 13,773 | – | – |
| Net income from continuing operationsGAAP | $ 37,274 | – | – |
| Net incomeGAAP | $ 34,247 | – | – |
| Diluted earnings per share, continuing operationsGAAP | $ 0.23 | – | – |
| Net diluted earnings per shareGAAP | $ 0.21 | – | – |
| Adjusted Net Incomenon-GAAP | $48.2 million | – | – |
| Adjusted diluted EPSnon-GAAP | $0.29 per diluted share | – | – |
| Adjusted EBITDAnon-GAAP | $107.0 million | – | (7%) |
| Non-recurring, restatement-related costs included in Adjusted EBITDAnon-GAAP | $11.8 million | – | – |
| Total net revenue, six months ended June 27, 2026GAAP | $ 991,857 | – | – |
| Operating income, six months ended June 27, 2026GAAP | $ 140,490 | – | – |
| Net income from continuing operations, six months ended June 27, 2026GAAP | $ 61,105 | – | – |
| Net income, six months ended June 27, 2026GAAP | $ 89,077 | – | – |
| Net diluted earnings per share, six months ended June 27, 2026GAAP | $ 0.54 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Take 5Same store sales were 3.6 %; system-wide sales were $ 460.2 and store count was 1,421. | $ 334.8 | – | – |
| Franchise BrandsSame store sales were 0.5 %; system-wide sales were 1,095.8 and store count was 2,696. | $ 69.6 | – | – |
| Auto Glass NowSame store sales were 2.6 %; system-wide sales were 72.7 and store count was 206. | $ 72.9 | – | – |
| Corporate and OtherSystem-wide sales, store count, and same store sales were reported as N/A. | $ 30.1 | – | – |
fiscal year 2026 outlook
- Revenue~$1.95 - $2.05 billion
- NoteAdjusted EBITDA: ~$430 - $460 million
- NoteAdjusted Diluted EPS: ~$1.15 - $1.25
- NoteAdjusted EBITDA is expected to be at the low end of its outlook range.
- NoteSame store sales growth: flat to 2%
- NoteNet store growth: approximately 160 to 190
- NoteFree cash flow: between $125 million and $145 million
- NoteNon-recurring, restatement-related costs: $35 million to $45 million
What drove it
- Revenue increased 7% versus the prior year.
- System-wide sales increased 5%, driven by a 1% increase in same store sales and 5% increase in store count versus the prior year.
- Every segment delivered positive same store sales growth.
- Take 5 delivered 3.6 % same store sales growth and its 24th consecutive quarter of growth.
- Interest expense, net was $ 20,791, versus $ 31,146 in the prior year.
- Prior-period financial information reflects restatement corrections and has been recast for discontinued operations for the applicable periods.
Concerns
- Adjusted EBITDA was $107.0 million, a decrease of 7% versus the prior year.
- The Company expects fiscal year 2026 Adjusted EBITDA to be at the low end of its outlook range.
- The Company cited continued uncertainty with lower-income consumers and the conflict in the Middle East.
- The Company expects non-recurring, restatement-related costs at the high end of its $35 million to $45 million range.
- Net income was $ 34,247, versus $ 54,044 in the prior year, reflecting discontinued-operations items.
- Cash flow statements have not been recast to reflect the impact of discontinued operations.
What to watch
- Progress toward the 3x leverage target after the reported 3.1x Adjusted EBITDA net leverage ratio.
- Whether fiscal year 2026 Adjusted EBITDA lands at the low end of the ~$430 - $460 million range.
- Same store sales performance against the fiscal year expectation of flat to 2%.
- Net store growth against the expectation of approximately 160 to 190.
- Free cash flow generation against the expectation of between $125 million and $145 million.
- The level of non-recurring, restatement-related costs relative to the $35 million to $45 million range.
Balance sheet and cash flow
- Cash and cash equivalents: $ 183,947 as of June 27, 2026, versus $ 102,938 as of December 27, 2025.
- Total liquidity: $855 million, consisting of $184 million in cash and cash equivalents and $671 million of undrawn capacity.
- Additional 2022-1 Securitization Senior Notes: $135 million, subject to the stated conditions.
- Net leverage ratio: 3.1x Adjusted EBITDA.
- Current portion of long-term debt: $ 26,243 as of June 27, 2026, versus $ 276,691 as of December 27, 2025.
- Long-term debt: $ 1,658,932 as of June 27, 2026, versus $ 1,882,783 as of December 27, 2025.
- Net income in the six months ended June 27, 2026: $ 89,077, versus $ 63,970 in the six months ended June 28, 2025.
- Depreciation and amortization in the six months ended June 27, 2026 cash flow statement: 43,488, versus 71,081 in the six months ended June 28, 2025. Cash flow statement figures are reported in thousands.
Analysis
Driven Brands reported second-quarter total net revenue of $ 507,416, compared with $ 475,213 in the prior-year period, while the release characterized revenue growth as 7%. System-wide sales increased 5% to $ 1,628.7 million and total store count was 4,323. The segment KPI table showed total same store sales of 1.4 %, while the narrative described a 1% increase in same store sales.
Underlying segment demand was positive across the portfolio. Take 5 recorded $ 334.8 of revenue, $ 460.2 of system-wide sales, and 3.6 % same store sales growth. Franchise Brands recorded $ 69.6 of revenue and 0.5 % same store sales growth, while Auto Glass Now recorded $ 72.9 of revenue and 2.6 % same store sales growth. Take 5's result extended its streak to 24 consecutive quarters of positive same store sales growth.
GAAP operating income increased to $ 73,050 from $ 47,049, and net income from continuing operations increased to $ 37,274 from $ 16,432. Net income, however, was $ 34,247 compared with $ 54,044, with the period including a $ (3,027) loss on sale of discontinued operations, net of tax, versus a $ 38,948 gain in the prior-year period. Adjusted EBITDA was $107.0 million, down 7% versus the prior year, and included $11.8 million of non-recurring, restatement-related costs.
Liquidity was $855 million and the Company ended the quarter with a 3.1x Adjusted EBITDA net leverage ratio. Cash and cash equivalents were $ 183,947, current portion of long-term debt was $ 26,243, and long-term debt was $ 1,658,932. The Company reiterated its fiscal year 2026 outlook but expects Adjusted EBITDA at the low end of the ~$430 - $460 million range, citing uncertainty with lower-income consumers, the conflict in the Middle East, and restatement-related costs expected at the high end of the $35 million to $45 million range.
Management, verbatim
Our results this quarter reflect the strength of our diversified, non-discretionary portfolio.
Danny Rivera, President and Chief Executive Officer
Revenue grew 7%, every segment delivered positive same store sales growth, and Take 5 extended its streak to 24 consecutive quarters of positive same store sales growth, including 3.6% growth this quarter.
Danny Rivera, President and Chief Executive Officer
We are reiterating our full-year 2026 outlook ranges and remain focused on scaling Take 5, generating consistent cash flow, and further reducing leverage.
Danny Rivera, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported second-quarter operating metrics.
- Gross profit and gross margin.
- Actual quarterly cash provided by operating activities.
- Actual quarterly free cash flow and capital expenditures.
- Actual share repurchases, dividends, or other capital returns.
- Total debt on a single reported line item.
- Previous-release outlook needed to compare reported results with prior guidance.
- A complete cash flow statement, as the supplied filing text ends mid-statement.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.