Investing.com — Stephens began coverage on Mister car wash Inc (NYSE: ) with an “Equal-Weight” rating and a $8 price target amid ongoing challenges in retail sales and consumer spending.
Revenue per store fell 7% from the first quarter of 2022 as weaker consumer demand weighed on the business. To counter this, the company introduced its Titanium wash package and raised the price of a Platinum wash membership to $32.99 from $29.99.
Stephens expects Mister Car Wash to post comparable-store sales growth of 1.5% and EBITDA growth of 4.4% in 2025, below average analyst 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 from Q3 2021. Advertising planned for 2025 and increased mileage could help boost retail traffic, he said is Stephens.
Membership trends are showing signs of stabilization, with price growth expected to support growth early in the first half of 2025.
The brokerage remains cautious, waiting for a recovery in retail traffic before adopting a more positive outlook.
