Driven Brands Announces Share Buyback Authorization Amid Balance Sheet Improvements
Driven Brands (NASDAQ:DRVN) has announced a $100 million share buyback program, marking its first significant capital return move in years. The company also set a new long-term net leverage target of between 2 to 3 times adjusted EBITDA as it continues improving its balance sheet after previously carrying higher debt levels. CEO Danny Rivera described the shift as entering “a new phase focused on deploying capital to support growth, maintaining financial flexibility and enhancing shareholder value.” The buyback is expected to be funded from existing cash reserves and ongoing free cash flow rather than through additional borrowing. Driven Brands also plans to continue investing in its Take 5 business, which has shown consistent same-store sales growth. Despite these positive steps, the company faces challenges elsewhere in its portfolio. Total company same-store sales grew only slightly at 1.4%, and adjusted EBITDA fell year-over-year due to non-recurring costs from a prior financial restatement. The corporate segment also reported an $52.5 million loss for the quarter.
Tickers: $DRVN
Topics: balance sheet management capital return share repurchase