Driven Brands (DRVN) investor relations material

Take 5 Oil Change growth and differentiation

• Take 5 offers a unique stay-in-your-car, 10-minute oil change, differentiating itself through convenience and high NPS scores in the high 70s.

• Since acquisition in 2016, Take 5 has grown from 40 to 1,300 locations, with system-wide sales rising from $50 million to nearly $1.4 billion.

• Growth drivers include new store openings, maturation of existing stores, and increased ticket size through premiumization and non-oil change services.

• Non-oil change revenue, such as filters and differential service, now accounts for about 20% of sales, with attach rates nearing 50%.

• Expansion strategy targets 150+ new locations annually, maintaining a two-to-one franchise-to-corporate store ratio.

Franchise segment and business stability

• The franchise segment, including Maaco and Meineke, is asset-light, mature, and generates EBITDA margins above 60%.

• Maaco has faced short-term softness due to its discretionary nature and exposure to lower-income consumers, but remains a strong cash generator.

• Collision repair business is taking market share despite industry headwinds, benefiting from owner-operator franchisees and strong insurance relationships.

• Meineke benefits from an aging car park and increased miles driven, with stable demand and positive industry tailwinds.

• Franchise segment provides robust cash flow to fund growth initiatives and deleveraging.

International car wash and U.S. glass business

• European car wash business is market-leading, with over 700 locations and a strong regulatory moat, recycling 80% of wash water.

• Recent investments include fleet remodeling and new product rollouts like ceramic and graphene coatings to boost check size.

• The independent operator model in Europe is cash-generative and avoids employment complexities.

• U.S. glass business is in incubation, targeting a $5 billion TAM with a focus on insurance and commercial clients for stickier, higher-margin work.

• The glass segment is positioned for long-term growth, leveraging scale and operational expertise.