Investing.com — Stephens began coverage of Mister Car Wash Inc (NYSE:MCW) with an “Equal-Weight” rating and a price target of $8 amid ongoing challenges in retail traffic and consumer spending.
Revenue per store has fallen 7% since the first quarter of 2022, as weaker consumer demand weighs on the business. To counter this, the company has introduced its Titanium wash package and raised the price of its Platinum wash membership to $32.99 from $29.99.
Stephens expects Mister Car Wash to post a 1.5% increase in comparable store sales and a 4.4% rise in EBITDA in 2025, below analysts’ average estimates of 3.3% and 8.9%, respectively.
Consumer pressure remains a concern, with rising credit card delinquencies and a ~30% drop in one-time wash revenue per location since the third quarter of 2021. Advertising efforts planned for 2025 and an uptick in vehicle miles traveled could help drive retail traffic, Stephens said.
Membership trends show signs of stabilization, with pricing gains expected to support growth beginning in the first half of 2025.
The brokerage remains cautious, awaiting a recovery in retail customer traffic before adopting a more positive outlook.
