Driven Brands Cuts 2026 Adjusted EBITDA Outlook After Restatement

The Tip Desk · November 10, 2026 · 3 min read

The automotive services company now sees Adjusted EBITDA of $410 million to $430 million and restatement costs of at least $50 million, while preliminary third-quarter same store sales rose 2.0%.

Driven Brands Holdings Inc. (DRVN) said its Audit Committee found material errors in previously issued financial statements for fiscal years ended December 27, 2025, December 28, 2024, and December 30, 2023, and in interim periods through June 27, 2026, and concluded those statements require restatement and should not be relied upon.

The errors identified to date primarily relate to accounting for fixed assets, including untimely write-offs tied to sale-leaseback transactions, misclassification among fixed-asset categories, and incorrect useful lives. Management said it found the additional issues while preparing Whole Business Securitization subsidiary audits. There is no set timeline for completing the restatement.

The company delayed its third-quarter earnings call and will not file its third-quarter Form 10-Q by the deadline. Until the restatement is finished, it said it will limit communications to required public disclosures. Chief Financial Officer Mike Diamond said the company is adding accounting resources and working with outside advisors, including reconciling fixed-asset records. President and Chief Executive Officer Danny Rivera said the company is reviewing whether other areas require adjustment and that, to date, the adjustments have a negligible impact on Adjusted EBITDA.

On a preliminary and unaudited basis for the third quarter ended September 26, 2026, Driven Brands same store sales increased 2.0%, versus 1.4% in the second quarter and 2.1% in the first quarter. Take 5 same store sales rose 4.9%, marking a 25th consecutive quarter of growth, after 3.6% in the second quarter and 4.5% in the first. Franchise Brands same store sales increased 0.5%, matching the second quarter. Auto Glass Now same store sales rose 6.5%.

Net unit growth was a decline of 7 units for Driven Brands in the preliminary third quarter. Take 5 added 27 net units. Franchise Brands declined 34 units. Auto Glass Now unit count was unchanged.

Cash and cash equivalents were approximately $230 million as of September 26, 2026, versus $184 million at June 27, 2026. The company ended the third quarter with total net debt of approximately $1.4 billion, reflecting repayment of approximately $485 million of long-term debt through the third quarter. It purchased about 315,000 shares for $3.8 million in the quarter and is required to temporarily cease share repurchases until it becomes current with reporting obligations.

Driven Brands lowered its fiscal 2026 Adjusted EBITDA outlook to $410 million to $430 million from $430 million to $460 million, and Adjusted Diluted EPS to $1.10 to $1.20 from $1.15 to $1.25. Revenue guidance remained $1.95 billion to $2.05 billion. Same store sales guidance was narrowed to 1.0% to 1.5% from flat to 2%. Free cash flow guidance was unchanged at $125 million to $145 million.

Restatement-related costs for 2026 are now expected at at least $50 million, up from a prior expectation of the high end of a $35 million to $45 million range, and are included in the updated Adjusted EBITDA outlook. The company said it has expanded the scope of the review and expects additional restatement-related costs in 2027. Rivera said the updated outlook reflects macroeconomic headwinds, pressure on lower-income consumers across Take 5, Maaco and Collision, and those costs.

Total net unit growth for 2026 is now expected at 80 to 100 units, down from approximately 160 to 190. Delays in issuing Franchise Disclosure Documents, which require completion of the WBS audits, have constrained Franchise Brand new unit openings in the third and fourth quarters of 2026, with that impact expected to continue until the restatement is completed and updated FDDs are issued. Take 5 net unit growth is now guided at 155 or more. Net capital expenditures are expected at approximately 6.5% of revenue.

Rivera said the company’s priorities are to complete the restatement, strengthen accounting processes and controls, and continue delivering growth at Take 5 and strong cash generation.