ADW Capital Management, which owns approximately 4.8% of Driven Brands Holdings Inc. (NASDAQ: DRVN), sent a letter to the company's board and controlling shareholder Roark Capital Group calling for an immediate strategic review process, according to a company statement.

In the letter dated June 9, 2026, ADW Capital managing member Adam Wyden criticized Driven Brands' management and questioned Roark Capital's motivations for maintaining current operations. The firm previously offered $18 per share for the company, representing what it described as a 40% premium to the current price.

Wyden stated that Driven Brands' stock has declined in double digits year-to-date while broader markets gained nearly 10%. He noted the company remains behind on filing its financial statements and criticized rising corporate selling, general and administrative expenses despite divesting a major business unit.

The letter included financial comparisons showing Driven Brands is expected to achieve a 49% gross margin and 23% EBITDA margin in 2027 according to consensus estimates, while competitor Valvoline is projected to earn a 38.5% gross margin and 27.5% EBITDA margin.

ADW Capital questioned Roark Capital's Fund IV performance, citing publicly available data showing the 2016 fund returned 0.25x as of September 30, 2025, approximately 10 years after inception. The firm suggested Roark's incentives may conflict with those of Driven Brands' public shareholders due to its focus on cash multiples rather than internal rate of return.

Roark Capital owns over 60% of Driven Brands and manages over $34 billion in assets under management according to regulatory filings referenced in the letter. The private equity firm charges up to 2% management fees and employs 145 people, with 104 in advisory roles.

ADW Capital was founded in 2010 and operates as a concentrated, long-biased investment partnership. The firm stated it will continue advocating for a sale process and indicated it may increase public pressure on Driven Brands' management and Roark Capital.