Driven Brands Holdings Inc. Q3 FY2024 earnings call

• Acknowledged the hard work of over 10,000 team members and franchisees. - Key priorities: delivering 2024 outlook, utilizing excess free cash flow to reduce debt, and active portfolio management. - Q3 highlights: revenue $592 million (+2% Y/Y), 56 net new stores, 1.1% same-store sales growth, adjusted EBITDA $138.8 million, diluted adjusted EPS $0.26. - Take 5 Oil Change: 17th consecutive quarter of positive same-store sales, 15% revenue growth Y/Y, 45 new stores opened, 40% franchised, and a pipeline of ~1,000 locations. - Franchise businesses: Represent approximately two-thirds of system sales, ~50% from long-standing commercial partners, and adjusted EBITDA margins exceeding 50%. - Driven Advantage: Online marketplace with ~80% eligible locations purchasing, offering over 90,000 SKUs. - Auto Glass Now: Long-term opportunity but takes time to build partnerships.

Maintenance Segment: Take 5 Oil Change had 17th consecutive quarter of positive same-store sales growth, with 5.4% same-store sales growth in Q3, 14.6% revenue increase Y/Y, 45 new stores opened, 40% franchised, and EBITDA margin of 32.9%. PC&G Segment: Q3 revenue was $109 million, adjusted EBITDA $34.7 million, adjusted EBITDA margin 31.9%, and same-store sales up 1.3%. Platform Services Segment: Segment revenue was $52.2 million, adjusted EBITDA $22.5 million, and adjusted EBITDA margin 43%. Car Wash Segment: Revenue $142.2 million, adjusted EBITDA $25.6 million, adjusted EBITDA margin 18%, same-store sales up 1.8%, and over 1 million members in the U.S.

• Reiterated 2024 guidance excluding PH Vitres sale impact: revenue $2.33 billion - $2.43 billion, adjusted EBITDA $529 million - $559 million, adjusted diluted EPS $0.88 - $1, net store growth ~205 - 220 stores, and target to reduce net leverage below 3x by end 2026.

• Macroeconomic environment impacting consumer spending. - Weather events affecting business operations. - Time required to grow Auto Glass Now business and build sustainable partnerships.

Q: Speak to ticket versus traffic in car wash and pricing trends A: Danny Rivera says Take 5 is performing well, with ticket growth from non-oil change revenue and premiumization driving results Q: Car wash comp balance between international and US A: International team did well, US had membership growth with over 1 million members in the U.S.

Q: Car wash post-hurricane retail flow A: Focus on membership, with tripled conversion rates and reduced churn rates Q: Maintenance segment margins and Take 5 mature store comps A: Margin degradation due to hurricanes, but mature stores performing well Q: Take 5 medium-term opportunity and Auto Glass Now ramp A: Take 5 has runway for ticket growth, Auto Glass Now has national rental and insurance wins Q: Consumer behavior on oil changes and maintenance A: No major trajectory changes, Take 5 continues to grow steadily Q: PC&G collision claims trend A: Claims down mid-single-digit, with DRP growth contributing to performance Q: Car wash membership pricing and competitive landscape A: Happy with membership strategy, competitive landscape with industry consolidation Q: Strategy to get to 3x leverage A: Growth in EBITDA and debt paydown from portfolio management efforts Q: Portfolio management and car wash sale A: Focus on simplifying business, proceeds from divestitures used to pay down debt Q: Car wash membership growth strategies A: Price point, training, and operational improvements contributing to membership growth Q: Glass business system performance A: Integration complete, with proper systems in place enabling wins like third-party administrator contracts