Driven Brands sets $100M share buyback and new leverage target

Driven Brands Holdings Inc. (NASDAQ: DRVN) announced updated capital allocation priorities, including a $100 million share repurchase authorization and a long-term net leverage target of 2x to 3x net debt to adjusted EBITDA.

The Charlotte, N.C.-based automotive services company said its board of directors authorized the repurchase of up to $100 million of its outstanding common stock through open-market purchases. The authorization has no stated expiration date, and the company is not obligated to complete any repurchases. The $100 million figure represents approximately 5% of the company's market capitalization.

The company said it expects to reach a net leverage ratio of 3.0x by the end of the third quarter of 2026, which it described as one quarter ahead of its previously stated plan. Net leverage stood at 5.0x at the end of 2023.

"We are entering a new phase focused on deploying capital to support growth, maintaining financial flexibility and enhancing shareholder value," said Danny Rivera, President and Chief Executive Officer.

The updated priorities also include continued investment in the company's Take 5 Oil Change brand, through new locations in existing and new markets, as well as potential acquisitions.

Mike Diamond, EVP and Chief Financial Officer, said: "This initial authorization demonstrates our commitment to returning capital to shareholders while continuing to invest in Take 5."

Driven Brands reported approximately $1.9 billion in annual revenue and roughly $6.1 billion in system-wide sales as of the end of fiscal year 2025, with more than 4,200 locations across the U.S. and Canada.

You May Also Be Interested In

• Meta Platforms Inc. (META) PT Raised to $885 at Goldman Sachs
• Meta Platforms Inc. (META) PT Lowered to $850 at TD Cowen
• argenx (ARGX) Misses Q3 EPS by 10c