Driven Brands Holdings Inc. (DRVN): A Bull Case Theory 

We came across a bullish thesis on Driven Brands Holdings Inc. on Elevator Pitches’s Substack by Editor, Elevator Pitches. In this article, we will summarize the bulls’ thesis on DRVN. Driven Brands Holdings Inc.’s share was trading at $15.70 as of January 12th. DRVN’s trailing and forward P/E were 114.64 and 11.25 respectively according to Yahoo Finance.

Driven Brands Holdings (DRVN), North America’s largest automotive services platform, has entered a new phase following the sale of its U.S. car wash business to Oaktree, marking a decisive portfolio transformation. Once burdened by leverage and capital-intensive operations, the company now stands as a refocused, free cash flow–generating platform centered on steady, high-margin maintenance and repair.

The divestiture not only simplified operations but also redirected capital toward Take 5 Oil Change—its fastest-growing brand—and debt reduction. Take 5’s simple, fast, and low-cost service model continues to gain share in the “do-it-for-me” oil change market, supported by robust unit economics and a combination of company-owned and franchise expansion. Meanwhile, Driven’s mature franchise brands—Meineke, Maaco, and CARSTAR—generate stable, recurring revenue from non-discretionary maintenance services, providing the financial base for growth investment.

The balance sheet reset has positioned DRVN for multiple re-rating, with improving leverage, cleaner financials, and stronger cash conversion. Further upside exists through potential asset sales, including the international car wash business and AutoGlassNow, which could accelerate deleveraging and unlock additional shareholder value.

Roark Capital, DRVN’s 61% majority owner, appears motivated to realize value after nearly a decade-long hold, aligning interests toward value creation. With Take 5’s accelerating growth and a more resilient portfolio mix, DRVN trades at a discount to peers despite clear catalysts for rerating. Applying a blended multiple of 11x 2027 EBITDA implies a price target near $29.50—over 100% upside from current levels—offering investors a compelling turnaround story anchored in recurring cash flow, simplified operations, and balance sheet recovery.

Previously we covered a bullish thesis on Driven Brands Holdings Inc. (DRVN) by Ben Tewey in March 2025, which highlighted portfolio simplification, deleveraging, and the growing value of its Take 5 Oil Change segment. The company’s stock price has depreciated by 7.37% since our coverage as the thesis awaited catalysts. The thesis still stands as Elevator Pitches shares a similar view but emphasizes the completed U.S. car wash divestiture and cleaner balance sheet.

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Disclosure: None.