Driven Brands Q1 2025: Unpacking Contradictory Insights on Take 5 Growth and Maaco Performance

Take 5's growth expectations, Maaco and CARSTAR business dynamics, Take 5's growth and consumer behavior, and Maaco's performance and market share are the key contradictions discussed in Driven Brands' latest 2025Q1 earnings call.



Revenue and Sales Growth:
- Driven Brands Holdings Inc. reported revenue of $516 million for Q1 2025, up 7.1% versus the prior year.
- This growth was supported by 177 net new stores over the past 12 months and 0.7% same-store sales growth, marking their 17th consecutive quarter of positive same-store sales growth.

Take 5 Oil Change Performance:
- Take 5 Oil Change delivered same-store sales growth of 8% for the quarter, marking its 19th consecutive quarter of positive same-store sales growth.
- The growth was attributed to its industry-leading growth engine, fueled by a proven operating model, strong consumer demand, and disciplined execution.

Debt Reduction and Financial Management:
- Driven Brands closed the U.S. Car Wash transaction, using the majority of cash proceeds to repay debt, with nearly $290 million repaid since the beginning of this year.
- Since the beginning of 2024, the company has repaid more than $0.5 billion in total debt, aligning with their priority of reducing debt and enhancing financial flexibility.

International Car Wash Segment Strength:
- The International Car Wash segment posted one of its most profitable quarters, with same-store sales growth of 26% and year-over-year revenue and adjusted EBITDA increase of 25% and 36%, respectively.
- This performance was driven by improved operations, expanded service offerings, and favorable weather conditions relative to a year ago.