Driven Brands Holdings Inc.
Securities Class Action

On February 25, 2026, Driven filed a Notice of Non-Reliance with the U.S. Securities and Exchange Commission, disclosing that “there were material errors in our previously issued consolidated financial statements for the fiscal year ended December 28, 2024 (‘fiscal year 2024’) and the fiscal year ended December 30, 2023 (‘fiscal year 2023’) contained in the Company’s Annual Report on Form 10-K for the fiscal year 2024, and in our previously issued unaudited condensed consolidated financial statements for each of the quarterly and year-to-date periods within fiscal year 2024 as well as the quarterly and year-to-date periods for the periods ended September 27, 2025, June 28, 2025 and March 29, 2025, and concluded that such financial statements should not be relied upon and required restatement (the ‘Restatement’).” Driven specified that the errors variously related to “the completeness and accuracy of recording leases”; “unreconciled differences for cash accounts primarily originating in fiscal years 2023 and earlier”; the incorrect presentation of “certain supply and other expenses” as “company-operated store expenses”; as well as “the income tax provision, supply and other revenue, fixed assets, cloud computing, lease cash application, and balance sheet and income statement misclassifications, as well as inappropriately recognized revenue in our ATI business primarily related to fiscal year 2025.” Driven also disclosed its “conclusion that our internal control over financial reporting and disclosure controls and procedures were not effective as of December 27, 2025.” On this news, Driven’s stock price fell $5.01 per share, or 30.16%, to close at $11.60 per share on February 25, 2026.