Driven Brands Holdings Inc.DRVN
Driven Brands Holdings Inc. Segments Disclosure
Segment Information
In the first quarter of 2025, the Company reorganized its operating segments to simplify its reporting structure, align with the Company’s current business model, and increase transparency for investors, which resulted in a change to the Company’s reportable segments. As a result, the Company had the following reportable segments: Take 5, Franchise Brands, and Car Wash. Then, in the fourth quarter of 2025, as a result of the announcement of the sale of ICW and the related results reflected within discontinued operations, the Company re-evaluated its operating segments, which resulted in another change to the reportable segments. As of the fourth quarter of 2025, the Company now has the following reportable segments: Take 5, Franchise Brands, and Auto Glass Now.
The Take 5 segment is primarily composed of Take 5 Oil. Take 5 Oil services a combination of retail and commercial customers, such as fleet operators. Take 5 Oil’s services include oil changes as well as certain as-needed automotive maintenance enhancements, including differential fluid exchanges, coolant services and air and cabin filters. The Take 5 segment also includes supply and other revenue and franchise royalties and fees.
The Franchise Brands segment is primarily composed of the Company’s portfolio of franchise brands, which include: Meineke, Maaco, CARSTAR, ABRA, Fix Auto, 1-800 Radiator, Uniban, and ATI, along with other smaller brands and services for retail, commercial, and insurance customers. The Franchise Brands segment also includes supply and other revenue, and company-operated store sales.
The Auto Glass Now segment provides auto glass repair, replacement, and calibration services to commercial, retail, and insurance customers within the U.S. The Auto Glass Now segment derives substantially all of its revenue from company-operated store sales.
The consolidated financial results include “Corporate and Other” activity. Advertising fund contribution revenue and related costs as well as shared service costs, which are related to finance, information technology, human resources, legal, supply chain, and other support services are recorded within Corporate and Other. Corporate and Other activity includes the adjustments necessary to eliminate certain intercompany transactions, namely supply sales fulfilled by the Take 5 segment to the Franchise Brands segment as well as discrete activity associated with the U.S. Car Wash business that was not classified as discontinued operations.
The Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer. The CODM evaluates segment performance and allocates resources, including capital expenditures and variable compensation, to each segment primarily as part of the annual budget process based on Adjusted EBITDA. The CODM reviews budget-to-actual results to assess performance and adjust resource allocations as necessary.
Adjusted EBITDA is defined as earnings from continuing operations before interest expense, net, income tax expense, and depreciation and amortization, with further amounts related to acquisition related costs, cloud computing amortization, share-based compensation, loss on debt extinguishment, foreign currency transaction related gains or losses, and certain non-recurring, non-core, infrequent or unusual charges. Adjusted EBITDA is a supplemental measure of the operating performance of the Company’s segments and may not be comparable to similar measures reported by other companies. Other segment items primarily include, but are not limited to, payroll and payroll-related costs, costs of inventory and supplies, utilities, and rent expense as well as marketing costs associated with non-franchised businesses within the reportable segments. No asset information has been provided for these reportable segments as the Chief Operating Decision Maker does not regularly review asset information by reportable segment.
Certain information within the tables below has been revised to conform to current year presentation to reflect financial results for continuing operations and segment changes.
Segment results for the years ended December 27, 2025, December 28, 2024, and December 30, 2023 are as follows:
| Year Ended December 27, 2025 | |||||||||||||||||||||||
| (in thousands) | Take 5 | Franchise Brands | Auto Glass Now | Total | |||||||||||||||||||
| Franchise royalties and fees | $ | 37,531 | $ | 152,554 | $ | — | $ | 190,085 | |||||||||||||||
| Company-operated store sales | 1,020,113 | 17,241 | 257,604 | 1,294,958 | |||||||||||||||||||
| Supply and other revenue | 157,771 | 115,210 | 150 | 273,131 | |||||||||||||||||||
| Total segment net revenue | $ | 1,215,415 | $ | 285,005 | $ | 257,754 | $ | 1,758,174 | |||||||||||||||
| Corporate and Other revenue | 104,264 | ||||||||||||||||||||||
| Total consolidated net revenue | $ | 1,862,438 | |||||||||||||||||||||
| Other segment items | 796,739 | 106,167 | 231,880 | ||||||||||||||||||||
| Reportable segment Adjusted EBITDA | $ | 418,676 | $ | 178,838 | $ | 25,874 | $ | 623,388 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Corporate and Other loss | 174,281 | ||||||||||||||||||||||
| Depreciation and amortization | 81,858 | ||||||||||||||||||||||
| Interest expense, net | 121,202 | ||||||||||||||||||||||
Acquisition related costs(a) | 1,644 | ||||||||||||||||||||||
Non-core items and project costs, net(b) | 21,560 | ||||||||||||||||||||||
Cloud computing amortization(c) | 17,696 | ||||||||||||||||||||||
Share-based compensation expense(d) | 32,079 | ||||||||||||||||||||||
Foreign currency transaction gain, net(e) | (14,715) | ||||||||||||||||||||||
Impairment, notes receivable loss, (gain) loss on sale of assets, net, and closed store expenses(f) | 63,160 | ||||||||||||||||||||||
Loss on debt extinguishment(g) | 5,392 | ||||||||||||||||||||||
| Income before taxes from continuing operations | $ | 119,231 | |||||||||||||||||||||
| Year Ended December 28, 2024 | |||||||||||||||||||||||
| As Restated | |||||||||||||||||||||||
| (in thousands) | Take 5 | Franchise Brands | Auto Glass Now | Total | |||||||||||||||||||
| Franchise royalties and fees | $ | 26,390 | $ | 162,244 | $ | — | $ | 188,634 | |||||||||||||||
| Company-operated store sales | 920,518 | 16,372 | 237,500 | 1,174,390 | |||||||||||||||||||
| Supply and other revenue | 123,237 | 116,720 | 28 | 239,985 | |||||||||||||||||||
| Total segment net revenue | $ | 1,070,145 | $ | 295,336 | $ | 237,528 | $ | 1,603,009 | |||||||||||||||
| Corporate and Other revenue | 149,467 | ||||||||||||||||||||||
| Total consolidated net revenue | $ | 1,752,476 | |||||||||||||||||||||
| Other segment items | 689,990 | 104,577 | 224,931 | ||||||||||||||||||||
| Reportable segment Adjusted EBITDA | $ | 380,155 | $ | 190,759 | $ | 12,597 | $ | 583,511 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Corporate and Other loss | 140,360 | ||||||||||||||||||||||
| Depreciation and amortization | 78,989 | ||||||||||||||||||||||
| Interest expense, net | 156,991 | ||||||||||||||||||||||
Acquisition related costs(a) | 2,394 | ||||||||||||||||||||||
Non-core items and project costs, net(b) | 16,751 | ||||||||||||||||||||||
Cloud computing amortization(c) | 10,081 | ||||||||||||||||||||||
Share-based compensation expense(d) | 50,881 | ||||||||||||||||||||||
Foreign currency transaction loss, net(e) | 17,530 | ||||||||||||||||||||||
Impairment, notes receivable loss, (gain) loss on sale of assets, net, and closed store expenses(f) | 84,236 | ||||||||||||||||||||||
Loss on debt extinguishment(g) | 205 | ||||||||||||||||||||||
| Income before taxes from continuing operations | $ | 25,093 | |||||||||||||||||||||
| Year Ended December 30, 2023 | |||||||||||||||||||||||
| As Restated | |||||||||||||||||||||||
| (in thousands) | Take 5 | Franchise Brands | Auto Glass Now | Total | |||||||||||||||||||
| Franchise royalties and fees | $ | 18,719 | $ | 171,648 | $ | — | $ | 190,367 | |||||||||||||||
| Company-operated store sales | 809,356 | 60,837 | 254,568 | 1,124,761 | |||||||||||||||||||
| Supply and other revenue | 95,320 | 118,042 | — | 213,362 | |||||||||||||||||||
| Total segment net revenue | $ | 923,395 | $ | 350,527 | $ | 254,568 | $ | 1,528,490 | |||||||||||||||
| Corporate and Other revenue | 181,550 | ||||||||||||||||||||||
| Total consolidated net revenue | $ | 1,710,040 | |||||||||||||||||||||
| Other segment items | 642,345 | 150,024 | 244,546 | ||||||||||||||||||||
| Reportable segment Adjusted EBITDA | $ | 281,050 | $ | 200,503 | $ | 10,022 | $ | 491,575 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Corporate and Other loss | 139,782 | ||||||||||||||||||||||
| Depreciation and amortization | 76,579 | ||||||||||||||||||||||
| Interest expense, net | 160,401 | ||||||||||||||||||||||
Acquisition related costs(a) | 7,588 | ||||||||||||||||||||||
Non-core items and project costs, net(b) | 5,642 | ||||||||||||||||||||||
Cloud computing amortization(c) | 2,673 | ||||||||||||||||||||||
Share-based compensation expense(d) | 19,648 | ||||||||||||||||||||||
Foreign currency transaction gain, net(e) | (4,078) | ||||||||||||||||||||||
Impairment, notes receivable loss, (gain) loss on sale of assets, net, and closed store expenses(f) | 124,486 | ||||||||||||||||||||||
| Loss before taxes from continuing operations | $ | (41,146) | |||||||||||||||||||||
(a)Consists of acquisition costs as reflected within the consolidated statements of operations, including legal, consulting, and other fees, and expenses incurred in connection with acquisitions completed during the applicable period, as well as inventory rationalization expenses incurred in connection with acquisitions. As acquisitions occur in the future, the Company expects to incur similar costs and, under U.S. GAAP, such costs relating to acquisitions are expensed as incurred and not capitalized.
(b)Consists of discrete items and project costs, including third-party professional costs associated with strategic transformation initiatives as well as non-recurring payroll-related costs and non-ordinary course legal settlements.
(c)Includes non-cash amortization expenses relating to cloud computing arrangements.
(d)Represents non-cash share-based compensation expense.
(e)Represents foreign currency transaction (gains) losses, net that primarily related to the remeasurement of our intercompany loans as well as gains and losses on cross-currency swaps.
(f)Consists of the following items (i) asset impairments, (ii) (gains) losses, net on sale leasebacks, disposal of assets, including assets held for sale, or sale of business; and (iii) loss on fair value of the Seller Note. See Note 18 for additional information regarding the Seller Note.
(g)Represents charges incurred related to the Company’s full repayment of the Term Loan Facility in conjunction with the sale of the U.S. Car Wash business and the issuance of the Series 2025-1 Senior Notes in the current year and charges incurred related to the Company’s partial repayment of Senior Secured Notes in conjunction with the sale of its Canadian distribution business in the prior year.
The following table shows information relating to the geographic regions in which the Company operates:
| Total Net Revenue for Year Ended | Total Long-Lived Assets | ||||||||||||||||||||||||||||||||||
| (in thousands) | December 27, 2025 | December 28, 2024 | December 30, 2023 | December 27, 2025 | December 28, 2024 | December 30, 2023 | |||||||||||||||||||||||||||||
| As Restated | As Restated | As Restated | As Restated | ||||||||||||||||||||||||||||||||
| United States | $ | 1,797,542 | $ | 1,643,888 | $ | 1,575,594 | $ | 975,063 | $ | 849,189 | $ | 771,557 | |||||||||||||||||||||||
| Canada | 64,896 | 108,588 | 134,446 | 10,199 | 12,055 | 21,666 | |||||||||||||||||||||||||||||
| Total | $ | 1,862,438 | $ | 1,752,476 | $ | 1,710,040 | $ | 985,262 | $ | 861,244 | $ | 793,223 | |||||||||||||||||||||||
The following table shows the capital expenditures by reportable segment and Corporate and Other:
| (in thousands) | Take 5 | Franchise Brands | Auto Glass Now | Corporate & Other | Total | ||||||||||||||||||||||||
| Capital expenditures | |||||||||||||||||||||||||||||
| 2025 | $ | 149,586 | $ | 2,795 | $ | 3,533 | $ | 36,842 | $ | 192,756 | |||||||||||||||||||
| 2024 (as restated) | 110,925 | 691 | 3,310 | 90,751 | 205,677 | ||||||||||||||||||||||||
| 2023 | 112,827 | 1,488 | 12,828 | 292,514 | 419,657 | ||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | May 19, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 18, 2022 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.