In this week's Tuesday Ticker: investors respond poorly to LKQ's recent announcement; Driven Brands' sale of a car wash business doesn't drive interest among investors and a paint company enjoys the spoils of a banner year.
Value Unlocked
A Chicago-based auto parts distributor is under pressure after its board announced plans to conduct a strategic review of its operations.
Last week, the LKQ Corporation, a U.S. distributor of recycled, aftermarket and specialty automotive parts headquartered in Chicago, said it had launched a strategic review that could include a sale of the company. The company said the review is intended to “unlock value that is not reflected in our current valuation,” and follows a previously disclosed process to explore options for its Specialty segment.
“We have initiated a formal review of strategic alternatives to identify the best path forward to unlock value that is not reflected in our current valuation,” board chair John Mendel said in a press statement.
While Collision Repair previously reported the announcement in last week's Tuesday Ticker, its impact on share prices was not yet clear. In the week after the announcement, LKQ's shares were down US$0.27 ($0.37 in CAD), or about 0.78%.
Wash Rinse
A Charlotte-based automotive franchisor lost ground after completing a portfolio trim.
On Jan. 27, 2026, Driven Brands Holdings, a U.S. automotive services company headquartered in Charlotte, N.C., confirmed it had closed the sale of its international car wash business, IMO, to Franchise Equity Partners. The company said the deal is intended to sharpen focus on its Take 5 Oil Change brand and reduce leverage, following an earlier announcement outlining the divestiture.
“This divestiture simplifies our portfolio, strengthens our balance sheet, and further positions Driven Brands to generate value for shareholders,” president and CEO Danny Rivera said in a press statement.
Investors seemed somewhat less enthusiastic about the move. Following the news, shares slipped US$0.31 ($0.42 in CAD), or roughly 1.93 percent.
Date Set
A major U.S. auto parts retailer edged higher after outlining its next investor update.
On Jan. 23, 2026, Advance Auto Parts, an aftermarket auto parts retailer headquartered in Raleigh, Va., said it will report 4Q and full-year 2025 results on Feb. 26. The announcement will follow earlier disclosures detailing store closures, cost reductions and other elements of the company’s ongoing turnaround.
Whatever the news shared by the company during the disclosure, investors appear to believe it will be good for the company's bottom line. Shares were up US$0.98 ($1.34 in CAD), or about 2.14 percent, in the days following the announcement.
Glossy Finish
A Cleveland-based coatings company gained ground after posting year-end results.
On Jan. 29, 2026, Sherwin-Williams, a U.S. paint and coatings manufacturer headquartered in Cleveland, reported 4Q and full-year 2025 earnings. Net sales totalled US$4.30 billion, up 3% year over year. This was driven by selling-price increases and modest volume growth, partly offset by currency headwinds. Adjusted earnings per share came in at US$1.45, compared with US$1.56 a year earlier, reflecting higher operating costs and increased interest expense. The company said it generated US$1.2 billion in operating cash flow for the full year and returned US$1.1 billion to shareholders through dividends and share repurchases, while reaffirming its focus on pricing discipline, cost control and margin expansion going into 2026.
“We delivered strong results in 2025, generating record consolidated sales,” president and CEO Heidi G. Petz said in a press statement.
Shares climbed following the update, adding US$4.98 ($6.79 in CAD), or about 1.42 percent.
Dividend Drive
A New York-based aftermarket supplier rallied after announcing a higher quarterly payout.
On Feb. 2, 2026, Standard Motor Products, a U.S. manufacturer of aftermarket ignition, emission and fuel-delivery components headquartered in New York, announced it had raised its quarterly cash dividend to US$0.33 per share.
The increase extends the company’s long-running dividend program and follows a series of prior payout hikes, underscoring management’s focus on returning capital to shareholders while maintaining balance-sheet flexibility.
“Our board of directors approved a quarterly dividend of 33 cents per share on the common stock outstanding,” the company said in a press statement, adding that the decision reflects its ongoing capital allocation strategy.
Investors responded sharply to the news, with shares jumping US$2.60 ($3.55 in CAD), or about 6.51 percent, following the announcement.
