Driven Brands Takes $35M–$45M Restatement Charge, Cuts $470M Debt to 3.3x Leverage
DRVN•Driven Brands restated $12M in 2023, $4M in 2024 and $5M in 2025 from lease accounting and expense errors, incurring $35M–$45M of non-recurring charges in $430M–$460M EBITDA guidance. The company sold its international car wash business to pay down over $470M of debt, cutting net leverage to 3.3x.
1. Earnings Restatement and Non-Recurring Charges
Driven Brands restated $12M in 2023, $4M in 2024 and $5M in 2025 due to lease accounting, cash accounting and expense classification errors. The company has included $35M–$45M of non-recurring restatement costs in its $430M–$460M adjusted EBITDA outlook for 2025 and expects no similar charges in 2027.
2. International Business Sale and Leverage Improvement
Proceeds from the sale of the international car wash business funded over $470M of debt reduction. Net leverage improved from 3.7x at the end of 2025 to 3.3x in early 2026, enhancing balance sheet flexibility and liquidity.
3. Segment Performance and 2026 Outlook
The Franchise Brands segment saw a 1.1% same-store sales decline driven by softness in the collision industry, while Take 5 traffic moderated among new and value-oriented customers. Management forecasts flat to 2% same-store sales growth in 2026, led by Take 5 expansion and steady margins in Franchise Brands.
