RBC Capital analyst Steven Shemesh has maintained an Outperform rating for Driven Brands Hldgs (NASDAQ: DRVN) while adjusting the valuation outlook. The firm lowered the price target to $17, down from the previous $18, reflecting a revised assessment of the stock's potential.

Analyst Rating

The research note from RBC Capital highlights the firm's continued positive stance on Driven Brands Hldgs despite the reduction in the price target. The adjustment comes as the market evaluates the company's operational trajectory and future performance.

Driven Brands Holdings Inc. reported financial results for the first quarter ended March 28, 2026, with adjusted earnings per share of $0.30, beating the analyst consensus estimate of $0.25. This represents an 11.11% increase over earnings of $0.27 per share from the same period last year. Revenue increased 8% to $484.4 million, though this figure missed the analyst consensus estimate of $486.480 million by 0.42%. The automotive services company achieved system-wide sales of $1.6 billion, driven by a 2% increase in same store sales and a 5% increase in store count. Net income from continuing operations rose to $23.8 million, or $0.14 per diluted share, compared to $13.5 million, or $0.08 per diluted share, in the prior year.

Adjusted EBITDA increased 2% to $104.1 million, which included $9.1 million of restatement-related, non-recurring costs. The company ended the quarter with a net leverage ratio of 3.2x Adjusted EBITDA and total liquidity of $804 million. Driven Brands reiterated its fiscal year 2026 outlook, projecting revenue of ~$1.95 - $2.05 billion and Adjusted EBITDA of ~$430 - $460 million.

First Quarter 2026 Key Performance Indicators by Segment

Fiscal Year 2026 Outlook

The company continues to expect fiscal 2026 same store sales growth in the range of flat to 2% and net store growth of approximately 160 to 190. Driven Brands expects to generate between $125 million and $145 million of free cash flow in fiscal year 2026.