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

Business overview and segment strategy

• Operates over 5,000 locations across oil change, franchise, and international car wash segments.

• Take 5 Oil Change is the primary growth engine, expanding from under 60 to 1,200 units since 2016.

• Franchise segment includes several mature brands, generating strong free cash flow reinvested into growth.

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

• Strategic focus is on balancing cash generation from franchises with growth investment in Take 5.

Recent performance and growth drivers

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

• Non-oil change services have high and growing attachment rates, now in the high 40% range.

• Premium oil (synthetic/semi-synthetic) now exceeds 90% of oil changes, with advanced full synthetic at mid-30% attachment.

• Two-part marketing strategy combines broad brand awareness with targeted digital campaigns.

• Significant room remains for further premiumization and service expansion.

Franchise and unit growth strategy

• Targeting a 50/50 mix of franchise and company-owned Take 5 stores, with a current pipeline of 1,000 new locations over 3–5 years.

• Franchise partners are critical for rapid expansion, leveraging strong unit economics and capital deployment.

• Franchise agreements typically cover 8–15 units over four years, with many partners expanding beyond initial commitments.

• Mature franchise brands (e.g., Meineke, Maaco) operate under owner-operator models, often passed down generations or resold.

• Franchising environment is robust, with high renewal rates and long average tenure among partners.