Driven Brands (DRVN) Goldman Sachs 31st Annual Global Retailing Conference summary

Consumer and industry trends

• Consumer demand remains steady, with some friction in the collision segment due to rising insurance rates and inflation.

• The business is considered defensive, with essential services like oil changes and repairs maintaining demand.

• Older vehicles and higher mileage are leading to increased maintenance needs, supporting long-term industry stability.

• The average vehicle age in the U.S. is now over 12 years, with 280 million vehicles on the road.

• EV adoption is moderating, with minimal impact expected until the late 2030s.

Take Five Oil Change growth and differentiation

• Take Five has grown from 40 to 1,000 units since 2016, with a clear path to 2,000 units by opening about 150 new locations annually.

• Franchisees are experienced multi-unit operators, typically signing 10-unit deals, with 60 active partners and visibility to 1,000 locations.

• The model emphasizes speed, simplicity, and trust, resulting in high NPS scores and repeat rates.

• Differentiation comes from a fast, menu-based, no-pressure service and superior real estate selection.

• Take Five will likely be reported as a standalone segment starting in 2025 to highlight its earnings growth.

Car wash business update

• U.S. car wash faces increased competition and macro pressures, with 3,000 new express tunnel units added since 2020.

• The business is more discretionary and weather-dependent, leading to performance volatility.

• No new growth capital will be allocated to U.S. car wash; a strategic decision is expected by year-end.

• The European car wash business is stable, cash-generative, and independently operated.

• 95% of U.S. car wash stores have been rebranded to Take Five Car Wash, but rebranding will not affect strategic decisions.