Driven Brands — Third Quarter 2026 Earnings Summary

Financial Performance:

• Preliminary third quarter same-store sales increased 2.0% for Driven Brands and 4.9% for Take 5.
• Net unit growth for the quarter was (7) for Driven Brands, 27 for Take 5, (34) for Franchise Brands, and 0 for Auto Glass Now.
• Cash and cash equivalents were approximately $230 million as of September 26, 2026.
• Total net debt ended the quarter at approximately $1.4 billion, reflecting the repayment of $485 million in long-term debt during the third quarter.
• The company purchased approximately 315,000 shares for $3.8 million during the quarter; since authorization, total purchases reached 1.7 million shares for $19.7 million.
• Material errors in fixed asset reporting were identified in previously issued consolidated financial statements for fiscal years 2023, 2024, and 2025, as well as quarterly and year-to-date periods within those years.
• Adjustments from the identified fixed asset errors have had a negligible impact on Adjusted EBITDA to date.

Guidance and Future Outlook:

• Revised full-year 2026 Driven Brands Same Store Sales outlook is 1.0% to 1.5%, down from the prior flat to 2% range.
• Revised full-year 2026 Take 5 Same Store Sales outlook is 3.5% to 4.0%.
• Revised full-year 2026 Driven Brands Revenue outlook remains $1.95 billion to $2.05 billion.
• Revised full-year 2026 Driven Brands Adjusted EBITDA outlook is $410 million to $430 million, down from $430 million to $460 million.
• Revised full-year 2026 Adjusted Diluted EPS outlook is $1.10 to $1.20, down from $1.15 to $1.25.
• Revised full-year 2026 Take 5 Net Unit Growth outlook is 155+ units.
• Revised full-year 2026 Free Cash Flow outlook remains $125 million to $145 million.
• Revised full-year 2026 Total Net Unit Growth outlook is 80 to 100 units.
• Restatement-related costs are expected to be at least $50 million in 2026, up from the previous high end of $35 million to $45 million.
• Additional restatement-related costs are expected in 2027.
• Net capital expenditures are expected to be approximately 6.5% of revenue.
• The outlook excludes the impact of potential M&A and divestitures other than the completed divestiture of the international car wash business.

Business Segments and Product Lines:

• Take 5 achieved its 25th consecutive quarter of growth with same-store sales up 4.9% and 27 net new units in the third quarter.
• Franchise Brand new unit openings were constrained in the third and fourth quarters of 2026 due to delays in issuing Franchise Disclosure Documents (FDDs) pending the completion of Whole Business Securitization (WBS) audits.
• Errors identified primarily relate to the accounting for fixed assets, categorized as: failure to timely write-off fixed assets (primarily sale leaseback transactions), misclassification of fixed assets within categories, and incorrect useful lives across certain categories.

Market and Competitive Landscape:

• Macroeconomic headwinds and continued pressure on lower-income consumers across Take 5, Maaco, and Collision segments are impacting performance.
• Driven Brands is the largest automotive services company in North America with over 4,200 locations across the U.S. and Canada as of the end of fiscal year 2025.
• The company's network generated approximately $1.9 billion in annual revenue from approximately $6.1 billion in system-wide sales.

Risks and Challenges:

• The Company is delaying its third quarter earnings call and will not file its Form 10-Q for the third quarter by the filing deadline.
• There is no set timeline for completing the restatement.
• The Company must temporarily cease share repurchases until it becomes current with its reporting obligations.
• Risks include the potential for additional adjustments, identification of additional material weaknesses, and the inability to complete the restatement or file amended reports within expected periods.
• Potential consequences include failure to maintain effective internal controls, securities litigation, regulatory inquiries, and listing rule violations.
• Management time and resources are being diverted from strategic matters to remediation efforts.

Management Commentary and Tone:

• CFO Mike Diamond stated the company is adding accounting resources and working with outside advisors to correct errors and reconcile fixed asset records.
• CEO Danny Rivera expressed understanding of shareholder, lender, employee, and franchisee frustration, emphasizing that the top priority is completing the restatement, strengthening processes and controls, and earning back trust.
• Rivera noted that the updated outlook reflects macroeconomic headwinds, consumer pressure, and restatement-related costs.
• Rivera highlighted priorities to complete the restatement while continuing to deliver growth at Take 5 and strong cash generation.

Other Key Points:

• The Audit Committee concluded that previously issued financial statements require restatement and should not be relied upon.
• The Company will limit communications to required public disclosures until the restatement is complete.
• The preliminary third quarter results are unaudited and subject to change as results are finalized.
• The Company is unable to provide a reconciliation of non-GAAP financial measures (Adjusted EBITDA, Adjusted Diluted EPS, Free Cash Flow) to GAAP measures due to the uncertainty and potential variability of reconciling items.