Mister Car Wash (MCW) Q3 2024 earnings summary

Executive summary

• Net revenues increased 7% year-over-year to $249.3 million in Q3 2024, with comparable-store sales up 2.9% and Unlimited Wash Club (UWC) memberships rising 2% to 2.1 million.

• Adjusted EBITDA grew 10% to $78.8 million, with a margin of 31.6%, and adjusted net income was $28.8 million ($0.09 per share).

• Opened 10 new greenfield locations in Q3, surpassing 500 total stores, with growth driven by UWC membership, price optimization, and the new Titanium offering.

• Retail sales trends improved sequentially through the quarter and into October, despite weather disruptions from hurricanes.

• Employee engagement and customer satisfaction remain high, with strong Net Promoter Scores and positive feedback.

Financial highlights

• Q3 2024 net revenues: $249.3 million (up 7% year-over-year); comparable store sales up 2.9%.

• Q3 net income: $22.3 million ($0.07 per share); adjusted net income: $28.8 million ($0.09 per share).

• Adjusted EBITDA: $78.8 million (31.6% margin); nine-month adjusted EBITDA: $242.7 million.

• Total costs and expenses were $200 million, including $7 million in stock-based compensation and a $2 million asset disposition gain.

• Cash and cash equivalents: $16.5 million; long-term debt: $931 million as of September 30, 2024.

Outlook and guidance

• Fiscal 2024 net revenues expected between $988 and $995 million, with comparable-store sales growth of 2.0% to 2.5%.

• Adjusted net income guidance raised to $114–$117 million; adjusted EBITDA guidance increased to $313–$318 million.

• Adjusted EPS forecasted at $0.35–$0.36; 40 new greenfield locations planned for the year.

• Capital expenditures projected at $330–$350 million, with $120–$135 million in sale-leasebacks.

• Incremental marketing spend in Q4 will impact operating income and EBITDA margins.