Driven Brands Launches $100M Buyback, Backs Take 5 Growth

Driven Brands, the parent of Take 5 Car Wash, Take 5 Oil Change, Maaco and Auto Glass Now, told investors this week it will start returning cash to shareholders after years spent paying down debt. The move marks a shift in strategy for one of the largest multi-brand automotive franchisors in North America.

A Capital Allocation Reset

The company's board authorized a $100 million share repurchase, roughly 5% of Driven Brands' market capitalization, after cutting net leverage from 5.0x EBITDA at the end of 2023 to an expected 3.0x by the third quarter of 2026. CFO Mike Diamond said the business generates more cash than it needs for growth alone, prompting the buyback and a long-term leverage target of 2 to 3 times EBITDA.

Take 5 Stays the Growth Engine

Even with capital freed up for buybacks, Driven Brands said Take 5's oil change and car wash units remain the priority for new investment, citing strong four-wall economics and cash-on-cash returns. CEO Danny Rivera said expansion will come through new and existing markets and could include acquisitions where the price is right, keeping the brand's fastest-growing concept at the center of company spending.

What It Means for Franchisees

For operators across Driven Brands' collision, glass and maintenance networks, the update signals a franchisor with room to invest rather than one stretched by debt service. Rivera credited the owner-operator model for outperforming the collision repair industry by 100 to 300 basis points, arguing franchisee accountability on staffing and quality is the company's edge as Auto Glass Now pushes for a bigger share of national insurer business.