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

Strategic focus and business simplification

• Emphasis on two pillars: high-growth Take 5 Oil Change and stable, cash-generating franchise brands.

• Simplification aims to clarify internal and external messaging, highlighting growth and cash flow.

• Take 5 has expanded from 40 to over 1,100 locations since 2016, with strong CAGR in store count, revenue, and EBITDA.

• Franchise brands maintain high EBITDA margins and low capital expenditure.

• The company is focused on growth and cash, crystallizing its identity post-IPO.

Growth strategies and learnings

• Glass and car wash businesses grew rapidly; glass is seen as a long-term opportunity with momentum building.

• Key learnings: focus on basics, understand industry nuances, and stay the course for mid- to long-term gains.

• Inorganic growth will be more thoughtful, with a preference for infill in existing platforms over new ventures.

• Current focus is on maximizing returns from the existing portfolio rather than expanding into new verticals.

Take 5 Oil Change: Growth engine

• Differentiated by 10-minute, stay-in-your-car service and high NPS scores.

• Strong internal talent pipeline and a robust pipeline of 1,000 new locations, with over 30% site-secured.

• Industry tailwinds include a large TAM, increasing miles driven, and aging car fleet.

• EV penetration is not seen as a near-term threat; business remains resilient into the 2030s.

• Market consolidation expected, with Take 5 positioned to gain share.