Driven Brands Holdings Inc., headquartered in Charlotte, N.C., said Tuesday that it has authorized the repurchase of up to $100 million of its outstanding common stock and set a long-term net leverage target of 2 to 3 times net debt to adjusted EBITDA. The company said repurchases will be funded from available cash balances and ongoing cash flows, are subject to market and economic conditions, and can be discontinued at any time. Driven Brands said it has no obligation to complete the program and that the authorization has no stated expiration date. Purchases may be made through open-market transactions or plans administered under Rules 10b5-1 and 10b-18 of the Securities Exchange Act of 1934.
The repurchase authorization represents approximately 5% of the company's market capitalization. Driven Brands operates more than 4,200 locations across the United States and Canada as of the end of fiscal year 2025, including Take 5 Oil Change, Meineke Car Care Centers, Maaco, 1-800-Radiator & A/C, Auto Glass Now and CARSTAR. The company said its capital allocation priorities include continuing to invest in Take 5 growth through units in new and existing markets, as well as potential acquisitions.
Mike Diamond, executive vice president and chief financial officer, said the company's free cash flow profile and balance sheet provide a strong foundation for executing its capital allocation priorities. Driven Brands said net leverage declined from 5.0 times at the end of 2023 and is expected to be 3.0 times at the end of the third quarter of 2026. The announcement was made on Tuesday, September 15, 2026, in connection with the Goldman Sachs Global Consumer and Retail Conference in New York, where the company is scheduled for a fireside chat beginning at 2:05 p.m. ET.
