Driven Brands (DRVN) BofA Securities Consumer and Retail Conference 2025 summary

Business overview and growth strategy

• Operates over 5,000 locations across segments, with Take 5 Oil Change as the primary growth engine, now at 1,200 units and a strong franchise component.

• Franchise segment includes several large, established brands, generating high-margin cash flow reinvested into growth areas.

• International car wash business (IMO) in Europe operates 725 locations with a stable, franchise-like model.

• Growth is driven by a pipeline of 1,000 new locations over 3–5 years, with a target mix of 50% franchise and 50% company-owned stores.

• Strategic focus is on cash generation from franchises and reinvestment into high-growth segments.

Recent performance and marketing initiatives

• Take 5 posted 9.2% same-store sales growth in Q4, driven by non-oil change services and premium oil mix.

• Non-oil change services have high and growing attachment rates, with premium oil now over 90% of oil changes.

• Two-part marketing strategy: always-on brand awareness and targeted digital campaigns, both contributing to transaction growth.

• Premium oil mix, especially advanced full synthetic, continues to offer growth runway.

Strategic divestitures and segment focus

• Announced sale of US car wash assets to focus on core franchise and Take 5 businesses, citing volatility in US car wash market.

• International car wash remains due to its stable, predictable margins and franchise-like structure.

• Business segmentation is being updated to reflect focus on Take 5, franchise brands, and international car wash.