Driven Brands predicts estimates may dip again in Q4

Driven Brands reported to investors during its Nov. 4 Q3 earnings call that claim avoidance and historically high total loss rates seen in Q1 and Q2, which caused estimates to decrease by around 10%, could occur again in Q4.

“It’s obviously related to the DRP [direct repair programs],” said Danny Rivera, president and CEO, referring to estimates being down. “As inflation has ticked up here in the last 24 months, it hit that part of the industry particularly hard. You’ve seen deductibles and premiums go up. The second reason is you’ve seen total loss rates [be] historically high… The industry did rebound in Q3.

“The positive thing for us is when we look at Driven collision, our specific businesses, we continue to take share. In a world where the industry maybe had some headwinds, we’ve consistently outperformed the industry. That continued in Q3.”

He added that the role Driven’s franchise segment plays in the portfolio is cash generation, and in Q3, that led to 66% adjusted EBITDA margins — an improvement of 90 basis points versus the prior year.

“At the shop level, we’re testing AI-driven camera technology that detects queuing issues in real time, helping managers adjust staffing and workflow to move more cars more efficiently and ultimately serve more customers,” he said. “Where Take Five drives growth, our franchise and car wash segments anchor cash generation. Our franchise segment, built around some of the most trusted names in the industry, including Meineke, Maaco, and CARSTAR, delivered same-store sales growth of 1% for the quarter versus prior year. That performance was driven by strength at Meineke and sequential improvements at Maaco and CARSTAR. ”

Mike Diamond, executive vice president and chief financial officer, reported that Q3 revenue was $535.7 million, an increase of 6.6% year-over-year. Q3 operating expenses increased $21 million year-over-year, including an increase in company and independently-operated store expenses of $16.4 million, driven by higher sales volumes and additional stores in Q3 of 2025 versus Q3 of 2024.

Adjusted EBITDA for Q3 was $136.3 million, roughly $4.3 million above Q3 last year, he said.

Rivera added, “We remain focused on our growth and cash strategy, driving strong, consistent growth through Take Five and generating reliable free cash flow from our franchise and car wash segments.”

In September, Auto Glass Now added two executives to its leadership team — Jamie Donais as vice president of operations and Jim Williams as vice president of operational excellence.

Donais brings decades of experience in the automotive and auto glass industry, with a track record of developing and leading high-performing teams, according to a Nov. 3 press release.

“Known for his focus on employee engagement and results-driven execution, Donais will be instrumental in optimizing day-to-day operations across the Auto Glass Now footprint,” the release states.

Williams, a transformational leader known for his strategic vision and operational leadership, will focus on building structures and processes to ensure Auto Glass Now remains customer-centric, competitive, and ready for the future, the release states.

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