Driven Brands Accelerates Growth with Take 5 Dominance in Q1 2025

Driven Brands Holdings Inc. (NASDAQ: DRVN) has delivered a robust start to 2025, with its Q1 results underscoring the resilience of its core businesses and the strategic value of its focus on non-discretionary automotive services. The company’s 7% year-over-year revenue growth to $516.2 million, alongside adjusted EPS of $0.27, outperformed analyst expectations and highlighted the growing dominance of its Take 5 Oil Change segment.

Q1 Results: A Strong Foundation for 2025

Driven Brands’ Q1 performance was driven by steady execution across its portfolio, though not all segments shone equally. System-wide sales rose 2% to $1.5 billion, supported by a 1% increase in same-store sales and a 4% expansion in store count to 4,800 locations. However, the true star was Take 5 Oil Change, which grew revenue by 15% and achieved 8% same-store sales growth for its 19th consecutive quarter. This segment now operates as a standalone division under a revised reporting structure, reflecting its strategic importance.

The company’s decision to divest its U.S. car wash business to Whistle Express in April 2025 marked a pivotal shift toward streamlining operations and reducing debt. Proceeds from the sale, while undisclosed, will primarily fund debt repayment, a move that could improve its balance sheet flexibility.

Take 5: The Engine of Resilience

Take 5’s performance is central to Driven Brands’ story. Its non-discretionary services—oil changes, tire rotations, and other routine maintenance—offer steady demand even in uncertain economic environments. The segment’s 15% revenue growth outpaced the broader automotive aftermarket sector, which grew just 4% in 2024, according to IBISWorld. Management attributed this to its customer retention strategies, including subscription-based pricing and loyalty programs, which have boosted recurring revenue.

The segment’s 19 consecutive quarters of same-store sales growth also suggest operational discipline. For comparison, competitors like Jiffy Lube (owned by Shell) and Valvoline have struggled with inconsistent growth, often relying on price cuts to drive traffic. Take 5’s focus on service quality and brand trust appears to be paying dividends.

Strategic Moves and Financial Outlook

Driven Brands reaffirmed its full-year 2025 guidance: revenue between $2.05 billion and $2.15 billion, and adjusted EPS between $1.15 and $1.25. These forecasts align with analyst estimates of $2.1 billion in revenue and $1.21 in EPS, suggesting confidence in its ability to maintain momentum. Management projects same-store sales growth of 1-3% and net store additions of 175-200 locations, with Take 5 expected to lead expansion.

The sale of its car wash division, while a loss of diversification, aligns with CEO Mark Diana’s stated priority: “Focus on what we do best.” By shedding a marginally performing asset, Driven Brands can redirect resources to high-growth segments like Take 5, which now commands 52% of its total stores.

Conclusion: Positioning for Sustained Growth

Driven Brands’ Q1 results and strategic actions paint a compelling picture of a company transforming itself into a pure-play leader in essential automotive services. Take 5’s dominance, paired with disciplined capital allocation—particularly debt reduction—positions the firm to capitalize on long-term trends in vehicle ownership and maintenance demand.

With its 4,800 locations across 14 countries and a portfolio that includes brands like Meineke and Maaco, Driven Brands is not merely surviving but thriving in an industry where service reliability and customer trust are paramount. The full-year guidance reaffirms that its strategy is on track, and with Take 5’s 15% revenue growth outpacing the broader market, the company is well-positioned to deliver on its financial targets.

Investors should note, however, that execution risks remain. The automotive aftermarket is intensely competitive, and economic headwinds could pressure discretionary spending on non-essential services. Yet, with Take 5’s consistent performance and a streamlined portfolio, Driven Brands has built a foundation for resilience—and growth—that few peers can match.