Driven Brands Holdings unveiled a $100 million share buyback authorization and a long-term net leverage target of 2 to 3 times adjusted EBITDA on September 15, its first real capital return move in years. The company said it expects to end the third quarter of 2026 at 3.0 times leverage, a full quarter ahead of schedule, down from 5.0 times in 2023, and CEO Danny Rivera framed the shift as entering a new phase focused on deploying capital to support growth, maintaining financial flexibility and enhancing shareholder value. The repurchase authorization equals roughly 5% of market capitalization and will be funded from existing cash and ongoing cash flow rather than new borrowing, according to CFO Mike Diamond. Growth investment continues, with Take 5 same-store sales up 3.6% in the second quarter for a 24th consecutive quarter of growth, and the company closed the quarter with $855 million in total liquidity, including $184 million in cash and $671 million of undrawn credit capacity. Still, total company same-store sales rose just 1.4% in the second quarter while Franchise Brands managed only 0.5%, adjusted EBITDA fell 7% year over year to $107.0 million on $11.8 million of non-recurring restatement costs that could reach $45 million for the full year, and adjusted net income slipped to $48.2 million from $48.9 million even as revenue climbed 6.8%. Driven Brands has guided full-year 2026 adjusted EBITDA to the low end of its $430 million to $460 million range, citing pressure on lower-income consumers and the conflict in the Middle East, while short interest sits at 15.32% of float and the stock trades at a forward P/E of 8.42 as of September 22.
Driven Brands Holdings IncUnveils $100M buyback and 2-3x leverage target, but also guides FY2026 EBITDA to low end amid weak same-store sales and restatement costs.
Franchise Brands PLC