Driven Brands Holdings Inc. announced updated capital allocation priorities on September 15, 2026, detailing a shift in strategy that includes a new long-term financial target and a significant share repurchase authorization.
The company stated that it has set a long-term net leverage target of 2-3x Net Debt to Adjusted EBITDA. This range is intended to balance financial flexibility with investment capacity. The company noted that it has reduced its net leverage from 5.0x at the end of 2023 to an expected 3.0x at the end of the third quarter of 2026, reaching its previous target ahead of schedule.
In conjunction with this update, the Board of Directors approved a $100 million share repurchase authorization effective September 15, 2026. The company indicated that this amount represents approximately 5% of its market capitalization. Repurchases may be conducted through open market transactions or other methods, including plans administered under Rules 10b5-1 and 10b-18 of the Securities Exchange Act. The company stated that the size and timing of any repurchases will depend on price, market, and business conditions.
The updated priorities also include a continued focus on investing in the growth of its Take 5 business, leveraging its operating model and cash returns. Driven Brands is the parent company of several automotive service brands, including Take 5 Oil Change, Meineke, Maaco, and CARSTAR.
