Driven Brands (DRVN) sees weakness from low-income consumers, with the company now expecting its full-year adjusted earnings before interest, taxes, depreciation, and amortization to be at the low end of its outlook range, which may keep investors on the sidelines, RBC Capital Markets said in a Friday note.

The company's 2026 EBITDA guidance $430 million to $460 million further sees pressures from the conflict in the Middle East, RBC said, adding that the low-end of the outlook range reflects continued consumer pressure, while the high end assumes some improvement.

RBC said it now expects 2026 adjusted EBITDA and earnings per share of $430 million and $1.18, compared with $445 million and $1.20 previously, along with a same-store sales growth of 1.5%.

RBC lowered its estimates for 2027 as well, now expecting adjusted EBITDA and EPS of $483 million and $1.46, respectively, from $521 million and $1.56 previously, along with annual same-store sales growth of 1.8%.

RBC adjusted its price target on the company's stock to $16 from $17 and maintained its outperform rating.

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