Driven Brands reports material errors, financial reporting weaknesses in FY 2023 and 2024 reports
Driven Brands‘ Board of Directors Audit Committee reported Monday that there are material errors in the company’s previously issued consolidated financial statements for fiscal years 2023 and 2024.
As a result of the errors, Driven Brands called off its Feb. 25 Q4 2025 and year-end earnings call.
The errors were found in Driven Brands’ annual report on Form 10-K for the fiscal year 2024, and in its unaudited condensed consolidated financial statements for each of the quarterly and year-to-date periods within fiscal year 2024, as well as the periods ended Sept. 27, 2025, June 28, 2025, and March 29, 2025.
After consultation with management, the committee concluded that the financial statements “should not be relied upon and required restatement,” according to a Form 8-K filed with the Securities and Exchange Commission by Driven Brands.
It was also concluded that a report from the company’s independent registered public accounting firm on the financial statements and internal control over financial reporting should not be relied upon.
Errors are related to lease and cash adjustments, expense classification, the income tax provision, supply and other revenue, fixed assets, cloud computing, lease cash application, and balance sheet and income statement misclassifications, and inappropriately recognized revenue.
“The impact of these errors and the lease adjustments, cash adjustments, and expense classification described above will be reflected in the company’s annual report on Form 10-K for the fiscal year 2025,” the document states. “In connection with the restatement, management has identified material weaknesses in the company’s internal control over financial reporting, resulting in the conclusion that our internal control over financial reporting and disclosure controls and procedures were not effective as of Dec. 27, 2025.
“The company’s review of the financial statements and evaluation of its internal controls over financial reporting is ongoing, and the company may identify further material errors.”
Driven Brands has requested additional time to file its 2025 annual report, and states in a Feb. 26 filing that it plans to do so “as soon as practicable.”
Driven Brands’ stock fell roughly 30%, to $11.60 per share at close on Feb. 25, 2026.
Meanwhile, stocks in competing company, Boyd Group, have gone up. As of Wednesday, Boyd shares were priced at about $168.71, up nearly 20% from its November IPO price of $141, according to The Motley Fool.
According to a Feb. 17 SEC filing, AYAL Capital Advisors reported establishing a new position in Boyd Group Services during Q4 2025. The fund acquired 58,098 shares, and the change in net position was $9.26 million.
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