ATLANTA, Feb. 25, 2026 (GLOBE NEWSWIRE) -- Holzer & Holzer, LLC is investigating whether Driven Brands Holdings, Inc. (“Driven” or the “Company”) (NASDAQ: DRVN) complied with federal securities laws. On February 25, 2026, Driven announced it would be restating certain previously issued financial results after determining those reports contained material errors. The price of the Driven’s stock dropped following the announcement. If you purchased Driven stock and suffered a loss on that investment, you are en ...

Driven Brands (NASDAQ: DRVN) stock, the holding company that runs such well-known automotive services brands as MAACO, Meineke Car Care, Take 5 Oil Change, and Auto Glass Now, tumbled 35% through 10:40 a.m. ET Wednesday morning after filing notice with the SEC that "there were material errors in our previously issued consolidated financial statements for the fiscal year ended December 28, 2024 ... and the fiscal year ended December 30, 2023." Errors range from "the completeness and accuracy of recording l ...

SAN DIEGO, Feb. 25, 2026 (GLOBE NEWSWIRE) -- Johnson Fistel, PLLP is investigating potential claims on behalf of investors of Driven Brands Holdings Inc. (NASDAQ: DRVN). The investigation focuses on Driven Brands’ executive officers and whether investor losses may be recovered under federal securities laws. What if I purchased Driven Brands securities? If you purchased Driven Brands securities and suffered losses on your investment, join our investigation now: Click here to join the investigation.Or for mor ...

Core Viewpoint - Driven Brands Holdings Inc. is facing potential securities fraud claims due to material errors in its previously issued financial statements, leading to a significant stock price drop [2][3]. Group 1: Financial Reporting Issues - The Audit Committee of Driven Brands concluded that there were material errors in the consolidated financial statements for the fiscal years ended December 28, 2024, and December 30, 2023, necessitating a restatement [2]. - The Company indicated that the Report of its Independent Registered Public Accounting Firm on the financial statements and internal control over financial reporting should not be relied upon [2]. Group 2: Market Reaction - Following the announcement of the financial reporting issues, Driven Brands' stock price fell by more than 36% in pre-market trading on February 25, 2026 [3].

Core Viewpoint - Rosen Law Firm is investigating potential breaches of fiduciary duties by the directors and officers of Driven Brands Holdings Inc. (NASDAQ: DRVN) [1] Group 1 - The investigation is aimed at assessing the actions of the company's leadership regarding their responsibilities to shareholders [1] - Driven Brands shareholders are encouraged to visit the law firm's website for more information on the investigation [1] - Contact information for Phillip Kim of Rosen Law Firm is provided for shareholders seeking further details [1]

Core Viewpoint - Driven Brands Holdings Inc. (DRVN) is expected to report a year-over-year increase in earnings despite lower revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus estimate for quarterly earnings is $0.32 per share, reflecting a year-over-year increase of +6.7% [3]. - Revenues are projected to be $459.43 million, which is a decrease of 18.6% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate for Driven Brands Holdings is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -31.25% [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [8][9]. - Driven Brands Holdings currently has a Zacks Rank of 4, which complicates the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, Driven Brands Holdings exceeded the expected earnings of $0.29 per share by delivering $0.34, resulting in a surprise of +17.24% [12]. - The company has beaten consensus EPS estimates in all of the last four quarters [13]. Conclusion - Driven Brands Holdings does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, but other factors should also be considered for investment decisions [16].

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of Driven Brands Holdings Inc. [1] Group 1: Legal Investigation - The investigation focuses on whether the management of Driven Brands has acted in the best interests of shareholders [1] - Long-term shareholders may seek corporate governance reforms and financial incentives through legal action [2] Group 2: Shareholder Involvement - Shareholder participation is emphasized as a means to improve company policies and oversight, potentially enhancing shareholder value [3] Group 3: Firm's Background - Halper Sadeh LLC has a history of representing investors affected by securities fraud and corporate misconduct, recovering millions for defrauded investors [4]

Company Overview - Driven Brands Holdings Inc. is the largest automotive services company in North America, providing a range of services including oil change, paint, collision, glass, vehicle repair, and maintenance [1] - The company operates approximately 4,200 locations across North America and services tens of millions of vehicles annually [1] - Driven Brands generates approximately $1.8 billion in annual revenue from about $6.1 billion in system-wide sales [1] Upcoming Earnings Call - Driven Brands will release its financial results for the fourth quarter and year ended December 27, 2025, before the market opens on February 25, 2026 [1] - Following the release, management will host a conference call at 8:30 a.m. ET to review the company's financial and operating performance [1] - The call will be available via webcast on the company's Investor Relations website, with a replay accessible for at least three months [1] Strategic Developments - The company has completed the sale of its international car wash business, IMO, to Franchise Equity Partners, marking a strategic milestone to focus on its core operations [1] - This divestiture is expected to enhance the company's focus on scaling its industry-leading Take 5 business and driving consistent cash generation from its franchise brands [1] Board of Directors Update - Timothy Johnson has been elected as an independent director to the Board of Directors, effective January 1, 2026 [1] - Johnson will also serve as a member of the Audit Committee, bringing leadership and financial expertise to the board [1]

Core Thesis - Driven Brands Holdings Inc. (DRVN) is positioned for significant upside following a strategic portfolio transformation, particularly after divesting its U.S. car wash business, which has allowed the company to focus on high-margin maintenance and repair services [2][4][5] Financial Performance - As of January 12th, DRVN's share price was $15.70, with trailing and forward P/E ratios of 114.64 and 11.25 respectively, indicating a potential undervaluation compared to peers [1] - The divestiture has simplified operations and redirected capital towards the rapidly growing Take 5 Oil Change brand, which is gaining market share in the oil change sector [3] Operational Strategy - The company’s mature franchise brands, including Meineke, Maaco, and CARSTAR, provide stable, recurring revenue from non-discretionary maintenance services, supporting growth investments [3] - The balance sheet reset has improved leverage and cash conversion, positioning DRVN for multiple re-ratings and potential asset sales that could further enhance shareholder value [4][5] Growth Potential - Roark Capital, the majority owner with a 61% stake, is motivated to realize value after a long-term hold, aligning interests towards value creation [5] - The accelerating growth of Take 5 and a more resilient portfolio mix suggest that DRVN is trading at a discount to peers, with a price target of approximately $29.50, representing over 100% upside from current levels [5]

Core Viewpoint - The Zacks Automotive - Retail and Wholesale - Parts industry is experiencing a positive outlook driven by trends such as an aging vehicle fleet, increasing vehicle technology complexity, and advancements in digitization that enhance customer experience [1][4][6]. Industry Overview - The industry encompasses retailing, distribution, and installation of vehicle parts, with options for consumers to either repair vehicles themselves (DIY) or seek professional assistance (DIFM) [3]. - The competitive landscape is evolving due to changing customer expectations and technological innovations [3]. Factors at Play - **Aging Vehicles Fuel Auto Parts Demand**: The average age of vehicles on U.S. roads has reached 12.8 years, leading to increased demand for repairs and maintenance as consumers prefer to maintain existing vehicles rather than purchase new ones [4]. - **Technology Changing Repair Dynamics**: Advanced vehicle technologies are making repairs more complex, resulting in a shift from DIY repairs to reliance on professional mechanics and service centers [5]. - **Digitization Enhancing Customer Experience**: Companies are investing in digital transformation to improve customer engagement through online platforms and transparent pricing tools, which are becoming essential for competitiveness [6]. - **Softening Auto Sales to Support Aftermarket Reliance**: Economic pressures are expected to soften new vehicle sales, prompting consumers to repair existing vehicles, thereby supporting demand for auto parts and services [7]. Industry Ranking and Performance - The Zacks Auto Retail & Wholesale Parts industry holds a favorable Zacks Industry Rank of 62, placing it in the top 25% of approximately 245 Zacks industries, indicating strong near-term prospects [8][9]. - Despite this, the industry has underperformed compared to the Auto, Tires, and Truck sector and the S&P 500 over the past year, with a growth of 2% compared to 12% and 20% respectively [11]. Current Valuation - The industry is currently trading at an EV/EBITDA ratio of 25.82X, higher than the S&P 500's 18.9X and the sector's 26.87X, reflecting the debt-laden nature of automotive companies [14]. - Over the past five years, the industry has seen an EV/EBITDA range from 22.15X to 32.70X, with a median of 26.23X [15]. Stocks in Focus - **Driven Brands (DRVN)**: The largest automotive services company in North America, focusing on oil changes and maintenance, with a strong growth trajectory through franchising and a solid cash generation model. The company has a Zacks Rank of 2 (Buy) with a projected EPS growth of 16.7% for 2026 [18][19]. - **O'Reilly Automotive (ORLY)**: Known for its disciplined expansion and strong distribution network, O'Reilly has achieved record revenues for 32 consecutive years. The company has a Zacks Rank of 3 (Hold) with an expected EPS growth of 11% for 2026 [22][23]. - **AutoZone (AZO)**: With 36 years of record sales, AutoZone is expanding its hub and mega-hub stores to improve service speed and parts availability. The company has a Zacks Rank of 3 with projected EPS growth of 3% for 2026 [26][27].