Toronto, Ontario -- This week's Tuesday Ticker takes a closer look at the mixed performance of Driven Brands Holdings during the second quarter of 2025.
During the period, the US$2.7 billion company -- which owns CARSTAR as well as several other brands including MAACO, Meineke Car Care Centers and Valvoline Instant Oil Change -- saw its revenues rise even as its financial position weakened.
Driven in Circles
Ths week, Driven Brands Holdings revealed it saw sales climb 6.2 percent, to US$551.0 million ($750 million), during the second quarter, beating expectations by a significant margin.
The organization is also celebrating the 18th straight quarter in which its stores that have open for at least a year sold have more services than in the year before.
Despite its success in selling services, the conglomerate actually saw its financial position decline. During the year ending on June 28, the company lost US$297.6 million ($405 million) overall.
The company's main challenge is debt -- it owes about 4.1 times what it makes in a year in operational profits. As of the end of June 2025, Driven Brands owed about US$2.38 billion in total.
While it may have been a rough quarter for the overall company, one of its brands is celebrating achieving a major milestone. CARSTAR, North America's largest collision franchise, opened its 1,000th collision repair facility in Arkansas.
Looking ahead, Driven Brands expects to bring in between US$2.05 billion and US$2.15 billion ($2.8 billion to $2.9 billion) in sales this year, with operational profits between US$520 million and US$550 million ($708 million to $749 million).
Investors weren't thrilled with the company's performance. Since the release of the Q2 report, the stock price had dropped 5.9 percent, falling from US$17.37 ($23.62) to US$16.71 ($22.75) following its release.
