(Loss) Earnings Per Share

9 Months Ended

Sep. 30, 2023

The Company calculates basic and diluted earnings (loss) per share using the two-class method. The following table sets forth the computation of basic and diluted earnings per share attributable to common shareholders:


	Three Months Ended				Nine Months Ended
(in thousands, except per share amounts)	September 30, 2023		September 24, 2022		September 30, 2023		September 24, 2022
Basic (loss) earnings per share:
Net (loss) income attributable to Driven Brands Holdings Inc.	$	(799,311)	38,391		$	(731,813)	15,790
Less: Net (loss) income attributable to participating securities, basic	(16,670)		809		(15,354)		335
Net (loss) income after participating securities, basic	(782,641)		37,583		(716,459)		15,455
Weighted-average common shares outstanding	162,398		162,760		162,698		162,768
Basic (loss) earnings per share	$	(4.82)	$	0.23	$	(4.40)	$	0.10


	Three Months Ended				Nine Months Ended
(in thousands, except per share amounts)	September 30, 2023		September 24, 2022		September 30, 2023		September 24, 2022







Diluted (loss) earnings per share:
Net (loss) income attributable to Driven Brands Holdings Inc.	$	(799,311)	$	38,391	$	(731,813)	$	15,790
Less: Net (loss) income attributable to participating securities, diluted	(15,051)		721		(13,753)		299
Net (loss) income after participating securities, diluted	$	(784,260)	$	37,670	$	(718,060)	$	15,491
Weighted-average common shares outstanding	162,398		162,760		162,698		162,768
Dilutive effect of share-based awards	—		4,071		—		3,895
Weighted-average common shares outstanding, as adjusted	162,398		166,831		162,698		166,663
Diluted (loss) earnings per share	$	(4.83)	$	0.23	$	(4.41)	$	0.09

Basic (loss) earnings per share is computed by dividing the net (loss) income attributable to Driven Brands Holdings Inc. by the weighted-average number of common shares outstanding for the period. In addition, the Company’s participating securities are related to certain restricted stock awards issued to Section 16 officers which include non-forfeitable dividend rights.

As of September 30, 2023, the Company had 4,661,360 shares of performance awards that were contingent on performance conditions which had not yet been met, and therefore were excluded from the computation of weighted average shares for the three and nine months ended September 30, 2023.

For the three and nine months ended September 30, 2023, we had net losses from operations. As a result, no potentially dilutive securities were included in the denominator for computing diluted loss per share as their inclusion would be antidilutive.

The following securities were not included in the computation of diluted shares outstanding because the effect would be antidilutive:


	Three Months Ended		Nine Months Ended
Number of securities (in thousands)	September 30, 2023	September 24, 2022	September 30, 2023	September 24, 2022
Restricted stock units	516	28	480	28


Stock Options	1,740	2,000	1,704	2,000



Total	2,256	2,028	2,184	2,028