Driven Brands (DRVN) Morgan Stanley Global Consumer & Retail Conference 2025 summary

Strategic transformation and portfolio focus

• Completed sale of U.S. and international car wash businesses to align with a growth and cash-focused strategy.

• Portfolio now centers on North American non-discretionary services with high-margin, franchise-driven brands.

• Resegmentation and reporting changes reinforce focus on core operations and capital allocation.

• Leadership remains committed to operational simplicity and franchise excellence.

Capital structure and leverage targets

• Committed to reducing net leverage to 3x by end of 2026, with recent asset sales accelerating progress.

• Pro forma leverage expected to improve by 0.3x after deal closure, with proceeds used to pay down debt.

• Future capital allocation plans will be shared as leverage targets are met.

Growth engines and business performance

• Take 5 remains the primary growth engine, targeting 2,500 units and opening 150+ locations annually.

• Franchise brands like Meineke and Maaco provide steady cash flow with margins above 60%.

• Achieved 19 consecutive quarters of positive comp growth, with Take 5 at 21 quarters.

• Diversified portfolio and needs-based services drive resilience across economic cycles.