Driven Brands (Nasdaq: DRVN) completed the sale of its car wash business in April, after that segment posted a 20% year-over-year revenue increase in Q1 2025, a higher percentage than any other business unit.
Before its divestment, Take 5 Car Wash saw $66.6 million in revenue in Q1, $13.5 million more than the same quarter in 2024.
Driven Brands notched $516.2 million in total first-quarter revenue, 7% higher than the first quarter of 2024. System-wide sales rose 2% during the same period, hitting $1.5 billion in 2025’s first quarter. Driven Brands announced Q1 2025 financial results in a press release on May 6.
In contrast to revenue, system-wide sales cover franchise stores not owned by the parent company, translating to a higher amount than company revenue.
In its full-year 2024 earnings announcement in February, Driven Brands announced an agreement to sell its previously owned Take 5 Car Wash business to Express Wash Operations, LLC, for $385 million.
The highest grossing brand during 2025’s first quarter was Take 5 Oil Change, which saw $387.5 million in sales, up 15% over the $326.4 million in revenue during the same time in 2024.
“We successfully completed the sale of our U.S. car wash business in early April, primarily using the proceeds to reduce our debt,” Driven Brands outgoing President and CEO Jonathan Fitzpatrick said in a statement. “While the economic environment is fluid, our diversified portfolio, anchored by non-discretionary services, demonstrates resilience and positions us well for the long term. We are confident in our ability to deliver on our 2025 outlook and remain committed to paying down debt as we grow the business.”
As of March 29, the company had $2.616 billion in long-term debt, about $40 million less than Dec. 28, and approximately $290 million less than the end of 2023.
After the divestment of its car wash business, Driven Brands has about 4,800 locations globally, and is the largest automotive services company in North America. Its portfolio of franchised business lines includes Meineke Car Care Centers, Maaco, Take 5 Oil Change, Auto Glass Now, 1-800-Radiator & A/C, CARSTAR, Abra and Fix Auto.
Driven Brands in February announced Daniel Rivera as the company’s new CEO, stepping into the role on May 9.
Fitzpatrick will stay on the board and take over the role of non-executive chair.
“I would like to congratulate Danny Rivera as he steps into the role of CEO,” Fitzpatrick said in a statement. “I am pleased to remain on the board as Chair and look forward to supporting Danny in his well-deserved new role and the continued growth of Driven Brands.”
