ADW Capital Management, which holds approximately 2.5% of Driven Brands Holdings Inc. (NASDAQ: DRVN), sent a letter to the company's board and controlling shareholder Roark Capital Group calling for an immediate strategic review process.

The investment firm contends that Driven Brands is undervalued due to structural, capital allocation, and governance issues. ADW believes shareholders could receive more than $30 per share in a controlled sale or breakup scenario.

In the letter dated March 25, 2026, ADW characterizes Driven Brands as "a loosely assembled collection of automotive service brands that appears to lack meaningful operational integration or strategic coherence." The firm points to corporate overhead costs of approximately $160-$180 million, compared to $45 million in 2019, and total selling, general and administrative expenses of around $555 million in 2024.

ADW estimates that the company's car wash expansion and subsequent divestiture cost shareholders over $1.74 billion, or more than $10.58 per share. The firm calculated this figure by analyzing merger and acquisition activity disclosed in public filings and subtracting proceeds from two divestitures.

The letter references comments made by former Driven Brands CEO Jonathan Fitzpatrick at a September 2024 Goldman Sachs conference, where he suggested the company's Take 5 oil change business alone was worth three times the entire company's market value at that time. Driven Brands' share price closed at $14.22 on September 5, 2024.

ADW recommends that the board announce a strategic review, engage independent advisors, increase transparency, reduce overhead, and evaluate governance changes. The firm suggests that individual segments could be sold for higher multiples than the company's current aggregate trading value.

The information is based on a press release statement from ADW Capital Management.