Why Driven Brands Stock Crashed Today

Driven Brands (NASDAQ: DRVN) stock, the holding institution that runs specified well-known automotive services brands arsenic MAACO, Meineke Car Care, Take 5 Oil Change, and Auto Glass Now, tumbled 35% done 10:40 a.m. ET Wednesday greeting aft filing announcement with the SEC that "there were worldly errors successful our antecedently issued consolidated fiscal statements for the fiscal twelvemonth ended December 28, 2024 ... and the fiscal twelvemonth ended December 30, 2023."

Errors scope from "the completeness and accuracy of signaling leases" to the misclassification of "supply and different expenses" to "unreconciled differences for currency accounts" discovered successful the process of (trying to) hole its fiscal study for Q4 2025.

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In a nutshell, Driven Brands says its fiscal statements for the past 2 years "should not beryllium relied upon," and it volition person to redo its mathematics and restate them. Driven was supposed to beryllium reporting its fiscal results for Q4 2025 today, but present that's not going to happen.

The institution plans to record a Form 12b-25 with the SEC aboriginal today, requesting a 15-day hold of the deadline for filing its Annual Report for fiscal 2025.

It whitethorn oregon whitethorn not conscionable this extended deadline.

Driven Brands is simply a spot of a handbasket lawsuit close now. Although income person held up well, Driven hasn't reported a nett successful 3 years, and the banal is carrying rather a spot of indebtedness -- astir $2.6 cardinal nett of currency connected hand.

Analysts had been predicting 2025 would beryllium the twelvemonth Driven turned things around, and turned profitable again. Now it doesn't look similar that's going to hap aft all. The safest happening to bash close present -- yes, adjacent aft the large driblet -- is astir apt to sell.

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