Mister Car Wash (MCW) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenues rose 8% to $255 million, driven by UWC member growth and nine new greenfield locations, with comparable-store sales up 2.4%.

• Adjusted EBITDA increased 20% to $88.7 million (34.8% margin), while net income declined to $22.1 million (8.7% margin).

• UWC members grew 3% year-over-year to 2.13 million, now representing 72% of total wash sales.

• Titanium and Platinum memberships now represent 60% of the 2.1 million member base, driving higher revenue per member.

• Retail traffic remained soft, but average ticket and revenue per member increased due to premiumization.

Financial highlights

• Q2 2024 net revenues: $255 million (+8% year-over-year); comparable store sales up 2.4%.

• Adjusted net income was $36.8 million ($0.11 per diluted share); adjusted EBITDA margin reached 34.8%.

• UWC sales comprised 72% of total wash sales; 15,000 net new UWC members added in Q2.

• Average express revenue per member rose to $28.14 from $25.87 year-over-year.

• Cash and cash equivalents at quarter-end were $3.6 million; available borrowing capacity was $291.7 million.

Outlook and guidance

• Fiscal 2024 net revenues expected between $988 million and $1.016 billion.

• Comparable store sales growth projected at 0.5%-2.5% for the year.

• Adjusted EBITDA guidance: $291.5 million to $308 million; adjusted net income: $99 million to $111 million.

• 40 new greenfield locations targeted; capital expenditures forecasted at $364 million to $405 million.

• Margins expected to moderate to low 30% range in the second half due to timing of investments and wage increases.