Mister Car Wash Q1 2025 Earnings Report

Mister Car Wash EPS Results

• Actual EPS: $0.11
• Consensus EPS: $0.10
• Beat/Miss: Beat by +$0.01
• One Year Ago EPS: $0.08

Mister Car Wash Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $257.87 million
• Beat/Miss: N/A
• YoY Revenue Growth: +9.40%

Mister Car Wash Announcement Details

• Quarter: Q1 2025
• Date: 5/7/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, April 30, 2025
• Conference Call Time: 4:30PM ET

Mister Car Wash (NYSE:MCW), together with its subsidiaries, provides conveyorized car wash services in the United States. It offers express exterior and interior cleaning services. The company serves individual retail and corporate customers. The company was formerly known as Hotshine Holdings, Inc. and changed its name to Mister Car Wash, Inc. in March 2021. Mister Car Wash, Inc. was founded in 1996 and is headquartered in Tucson, Arizona.

Mister Car Wash Q1 2025 Earnings Call Transcript

Presentation

[Operator]

Good afternoon, and welcome to Mr. Car Wash First Quarter twenty twenty five Conference Call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time. Please note that this is being recorded and a reproduction of this call in the whole or in part is not permitted without written authorization from the company.

[Operator]

I will now turn the conference over to Eddie Plank, Vice President of Investor Relations.

[Edward Plank, VP - Investor Relations at Mister Car Wash]

Good afternoon, everyone, and thank you for joining us to discuss our first quarter financial results. With me on the call today are John Lai, Chairman and Chief Executive Officer and Jed Gold, Chief Financial Officer. After John and Jed have made their formal remarks, we'll open the call to questions. During this conference call, references to non GAAP financial measures will be made. A complete reconciliation of these measures to the most comparable GAAP measures have been included in the company's earnings press release issued earlier today and posted to the Investor Relations section of the company's website at mrcarwash.com.

[Edward Plank, VP - Investor Relations at Mister Car Wash]

As a reminder, comments made on today's call may include forward looking statements, which are subject to significant risks and uncertainties that could cause the company's actual results to differ materially from management's current expectations. While the company may choose to update these statements in the future, it is under no obligation to do so unless required by applicable law or regulation. Please review the forward looking statements disclaimer contained in the company's SEC filings, including its most recent 10 ks and 10 Q reports, as such factors may be updated from time to time with the Securities and Exchange Commission. I'll now turn the call over to John.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Thanks, Eddie. Good afternoon, everyone, and thanks for joining our first quarter twenty twenty five earnings call. We are very pleased with our continued momentum in Q1 during which we delivered strong comp store sales growth of 6% and record revenues and adjusted EBITDA which increased 914% respectively. These results exceeded our expectations led primarily by strong demand during the quarter and efficient execution by our best in class operations team who maximize throughput and continue to drive UWC membership. Q1 marked eight consecutive quarters of overall comp growth for MiSTer and the first back to back quarters of positive retail comps in three years, which also helped fuel better than expected UWC member growth.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

In terms of industry dynamics, we've seen a steady reprieve to competitive intrusion with a number of competitor new builds opening within the three mile radius of mister becoming less intense since the peak of 2023. We view this along with some of the recent industry restructurings as an opportunity to extend our leadership position and build upon our strong foundation. As the market rationalizes over the next several years, we believe we're optimally positioned to capitalize on the shifting landscape in our space. While there's still uncertainty around the tariff environment, our exposure is primarily limited to the indirect impacts the tariffs may have on consumer spending and on our supplier base. As a consumer services company, we are better positioned than most traditional retailers and our cost structure eliminates most of the direct exposure keeping it fairly well contained as a percentage of our total spend.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Moving forward, we continue to make meaningful progress in our four strategic pillars to drive sustainable long term growth. I'll now provide a brief update on each pillar. Starting with expanding our footprint. We opened four new Greenfield stores in the first quarter fortifying our position in key markets and we remain on track to add 30 to 35 new stores in 2025. As a reminder, we're taking an even greater data driven approach in our analysis of both core and new markets to identify sites that will generate the highest ROI as we aim to increase our share and expand our store footprint across the country.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Given the large opportunity in front of us, we remain confident in our potential to organically double our store count in The U. S. Over time. That said, as our history demonstrates, we are agnostic with respect to avenues of growth and will opportunistically pursue M and A where it makes strategic and financial sense. Next, increasing our innovative solutions.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

We believe one of our many competitive advantages is our ability to consistently innovate and develop new products and services to create even more value for our customers. Our motivation is to continuously elevate and enhance the customer experience and look for ways to further distinguish ourselves to create an even bigger competitive advantage. Innovations like our proprietary Titanium three sixty with its mirror like finish and underbody protection developed by our in house R and D team have had a tremendous impact on our top and bottom line while delivering an exceptional car to our customers. We're also continuously assessing our value to price ratio across the country and saw an opportunity to implement a $3 price increase in most markets to our base UWC program, which represents approximately 40% of our membership tiers. This puts us in line with many of our competitors and is the first increase to our base program since inception.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Moving on to driving traffic and growing membership. We increased URBC membership by 5% year over year in Q1 to over 2,200,000 members. As we increase our investment in marketing this year, our goal is to drive retail traffic with messages and offers that resonate down to the individual level. To that end, we're running immediate tests in six different regions across digital, radio and paid social to drive visitation. We've also run targeted promotions to increase membership sign ups.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

As we refine and more fully implement these efforts, we believe it will help expand our customer reach, drive increased traffic and deliver higher membership growth. Finally, building a best in class team. From our senior management team to our rock stars in the stores, we continue to strengthen our bench, improve our capabilities and increase our capacity for growth, while working diligently to improve our culture. In the end, it's all about people and I couldn't be prouder of our team who have an extraordinary will to succeed and are constantly evolving and getting better each day. Looking ahead and with a somewhat uncertain macro environment in the near term, we remain confident in our ability to deliver positive results and build on our leadership position.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

The American consumer has embraced express exterior car washing as part of the regular routine and the popularity of our subscription program is driven by its convenience and affordability. Over the last thirty years, we've managed through various economic cycles and demonstrated how resilient our service remains. Before I hand the call off to Jed, I want to express our sincere gratitude to our amazing team who shows up every day, works incredibly hard and makes our strong results possible. I'll now pass it to Jed to provide more commentary around our financial results.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

Thanks, John, and good afternoon, everyone. We are very pleased with our strong start to the year. As John indicated, our results in the first quarter exceeded our expectations marked by a solid improvement in retail and consistently strong UWC trends. This resulted in a record Q1 by many measures, including revenue, which increased 9% and adjusted EBITDA, which grew 14%. Before I get into the details, I'd like to touch on a few highlights.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

From a top line perspective, our stronger than expected sales were driven by mid single digit UWC and retail comp growth. Sales were particularly robust in January, led by a high teens increase in our non subscription business. This drove healthier membership sign ups, which combined with our lower best in class churn resulted in total membership growth that exceeded our plan. Converting one time visits into higher UWC membership highlights the real power of our model as the stickiness of our members provides a durable and long lasting tailwind to revenue. While weather provided a favorable backdrop this quarter, it was our operational strength coupled with great site layouts, which facilitate strong throughput that enabled us to take advantage of the increase in demand.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

That said, comp store trends moderated through April, largely due to a stronger lap and the timing of Easter. Keep in mind that the Easter holiday fell later this year compared to last year, creating a slight headwind to our Q2 comp. Despite these factors, comp store sales are still running positive low single digits. Our subscription business continued to provide us with a meaningful and steady stream of reoccurring revenue, driven by continued strength in our Titanium membership. Titanium accounted for 23% of our membership mix, contributing to a roughly 6% increase in Express revenue per member during the first quarter.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

We continued to tightly manage our expenses during the quarter, which along with the timing shift in marketing expenses allowed us to lever SG and A and drive strong cash flow and adjusted EBITDA levels. Great revenue growth coupled with good expense management delivered strong flow through to EBITDA as well as a healthy increase to adjusted EBITDA margin. Furthermore, we voluntarily paid down approximately $62,000,000 of debt during the quarter, while still maintaining a strong and flexible cash position. As a result, we anticipate that our net leverage ratio will improve to just under 2.5 times adjusted EBITDA by the end of

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

the

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

year. Finally, and building on John's comments around the competitive environment for a moment. In addition to the rate of competitor new builds slowing down, I'd like to point out that even when competitive intrusion has negatively impacted the performance of our stores, comps at those stores have consistently bounced back over a roughly two year period to outperform the chain average. This tells us that while customers may initially be tempted to try a new competitor site, over time, they eventually come back to MR for our superior offering and exceptional value proposition. Now let me provide some more details on the first quarter numbers.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

For simplicity, I'll be referring to adjusted numbers only, which exclude items such as stock based compensation and gain or loss from the disposition of assets. The reconciliation of adjusted figures can be found in our eight ks filing and earnings press release. Net revenues increased 9%, driven by a combination of 6% comparable store sales growth and the contribution of incremental revenue from new store openings. UWC sales represented 73% of total wash sales, and we ended the quarter with more than 2,200,000 UWC members. On a year over year basis, the number of UWC members increased by approximately 5%.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

At the end of the quarter, the membership split among base, platinum and titanium was approximately 42%, thirty five % and twenty three % respectively. The average Express revenue per member in Q1 increased approximately 6% to $28.78 driven primarily by the success of our titanium membership tier. Overall, we are very pleased with the team's focus on expense management. Total operating expenses were $176,000,000 in the quarter. As a percentage of revenue, total operating expenses decreased 130 basis points to 67.3%.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

Labor and chemicals decreased 160 basis points to 27.3%, driven primarily by leverage on our stronger sales performance as well as efficiencies we realized from our optimized labor model and some savings in chemical costs. Other store operating expenses increased 90 basis points to 33.3%, primarily driven by higher rent expense related to our new store growth and sell leasebacks, as well as higher utilities, equipment and facilities maintenance costs. G and A expense decreased 60 basis points to 6.7%, driven primarily by better expense management. In addition, G and A benefited from the shift of roughly $1,500,000 of planned marketing spend from Q1 to Q2. Overall, we remain focused on doing more with less, tightly managing expenses and optimizing the G and A structure of the business.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

EBITDA increased 14% to $86,000,000 and EBITDA margin increased 130 basis points to 32.7%. First quarter interest expense decreased 20% to $16,000,000 primarily due to lower average interest rates year over year and lower borrowings compared to last year. Finally, first quarter net income and net income per diluted share were $35,000,000 and $0.11 respectively. As noted in our earnings press release, our new methodology for calculating adjusted net income and adjusted EPS no longer excludes non cash rent expense, which totaled approximately $2,000,000 in Q1. Moving on to some balance sheet and cash flow highlights at the end of the quarter.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

Cash and cash equivalents were $39,000,000 and outstanding long term debt was $858,000,000 a $67,000,000 sequential decrease as we opted to pay down a portion of the long term debt. Our balance sheet remains healthy and flexible and we continue to self fund our growth and expansion. Although we did not execute any sale leasebacks in the first quarter, we feel good about trends in the market and we'll continue to focus on driving cap rates even lower given the strong demand from buyers interested in purchasing MR locations. Now I'll provide an update to our full year outlook. Given our recent momentum, we are even more optimistic on the health of our business and our positioning in the marketplace.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

As a result, we are revising our guidance to reflect these encouraging trends. Specifically, we are raising the low end of our full year guidance range for revenue, comparable store sales and adjusted EBITDA by flowing through the Q1 beat. Embedded in our outlook is a cautious view of the consumer given the current macro backdrop. We are balancing our optimism about our business and momentum against the uncertainty of the consumer environment and the potential economic fallout and turbulence from tariff negotiations. As John mentioned, we are well insulated from the direct tariff exposure.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

Our chemicals and materials are predominantly sourced within The United States and we have contracted prices locked in to further hedge our short term exposure. However, although our cost exposure is indirect, the broader downstream impact on the consumer is unknown and difficult to predict. This could create greater volatility in our business, particularly retail, where we are retaining a measured view on our expectations for the remainder of the year. For additional context and color, I'm including some factors to assist you for modeling purposes. First, we continue to expect total comparable store sales growth to be stronger in the front half of the year compared to the back half as we lap the full price rollout of titanium in May and then face more challenging comparisons in the back half.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

The impact due to the timing of the Easter holiday this year compared to last year will be an estimated 30 to 40 basis point headwind to our full quarter Q2 comp. Number two, we continue to expect the implementation of price increases on our base membership to provide support to revenue per member, helping to offset some of the expected pressure in the back half. Number three, as I mentioned earlier, roughly $1,500,000 of marketing spend shifted from Q1 into Q2. For the full year, we expect a modest uptick in our marketing investments versus last year. Number four, we continue to expect roughly 70% of our new greenfield openings to occur in the second half of this year.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

And number five, our new methodology for calculating adjusted net income and adjusted EPS no longer excludes non cash rent expense in the calculation. This results in approximately a $5,000,000 and $02 negative impact respectively to our full year guidance. Without this change, our outlook for these metrics would have improved to 145,000,000 to 152,000,000 and $0.44 to $0.46 respectively. For even more details, the full list of our initial outlook ranges for 2025 can be found in the table in today's earnings release. In conclusion, as we look at many of the changes occurring across the industry and anticipate where the industry is heading, coupled with our strong positioning, we are optimistic about our long term outlook despite a tough macro backdrop.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

Our operational excellence is unparalleled in the industry and the depth and experience of our management is second to none. With our strong brand, dedicated team, leading subscription business and robust unit economics, we are well positioned to drive growth and create long term value for our shareholders. Operator, that concludes our prepared remarks, and we will now open the call for questions.

[Operator]

We will now begin the question and answer session. Our first question comes from Simeon Gutman from Morgan Stanley. Please go ahead.

[Simeon Gutman, Managing Director at Morgan Stanley]

Hey guys, good quarter. I wanted to ask first about the comp guidance. Jed, I know you just were very detailed on it. I wanted to follow-up. So the math on the next three quarters at the high end is just 2% I think it's just a 2% at this point to get to the high end 3%.

[Simeon Gutman, Managing Director at Morgan Stanley]

So is that scenario weaker consumer and tough compares? And then at the low end, I think it's just a flat at this point. So you did say you're confident in the business. You just ran two quarters of 6%, granted tough compare, but is that are you thinking recession, consumer pulls back a lot? How do we get to that low end?

[Simeon Gutman, Managing Director at Morgan Stanley]

Thank you.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

Yes, Simeon. So when we think about first of all, the quarter really, really happy with what we saw during the quarter plus six testament to 75% of the business subscription. The challenge is just the environment that we're in. And so as we look at where we made changes to the balance of the year, revenue per member growth still in that plus low single digit to plus mid single digit range consistent with the guidance that we had in Q4. Comp store member growth slight positive to low single digit once again consistent with what we laid out on the Q4 call.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

And then we gave ourselves just a little bit of room as we looked at retail sales. At the high end of the guide, it was a negative mid single digit comp at the time of the Q4 call and we've taken that down to negative high single digits just given the choppy backdrop and some of the turbulence that the tariffs and then as I shared in the prepared remarks, we did see a little bit of a moderation in April, although we're still running, we're positive. So a little cautious and tepid just given the backdrop that we're in.

[Simeon Gutman, Managing Director at Morgan Stanley]

Can I just ask an unrelated follow-up on free cash flow? Can you just remind us what how you like a philosophy on it? Are you using cash not just

[Simeon Gutman, Analyst at Morgan Stanley]

to grow? It looks like

[Simeon Gutman, Managing Director at Morgan Stanley]

you paid some debt down in this first quarter. Are you trying to keep neutral or the business should throw off cash as it continues to grow and build?

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

Yes. Right now, the way that we model it out is roughly neutral. Simeon, if you recall, on the Q4 call, we did pull back the number of new builds just a little bit and that gave us some excess cash flow that we used to help pay down the debt. So broad level high level, if you look at the high end of the guidance, $346,000,000 of adjusted EBITDA. We've got $3.00 $5,000,000 in CapEx.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

That includes both the core store and the new build CapEx. We've got roughly $50,000,000 in sale leasebacks on the year, dollars 61,000,000 of interest going out the door and then a little bit for cash tax. So it's roughly a positive $25,000,000 free cash flow on the year.

[Simeon Gutman, Managing Director at Morgan Stanley]

Okay. Thank you. Good luck.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

Thanks.

[Operator]

Your next question comes from Randy Konik from Jefferies. Please go ahead.

[Randal Konik, Managing Director at Jefferies & Company Inc]

Yes. Thanks guys and good afternoon. I guess one question. If I look at the UWC member growth, I believe it was up 5% in the quarter. I believe it's coming out of the fourth quarter, it was up 2% on a year over year basis, so a nice healthy acceleration sequentially.

[Randal Konik, Managing Director at Jefferies & Company Inc]

Can you give us some perspective? Is that kind of just doing a better job on these different marketing tactics? Any particular kind of reasons for that better conversion, if you will, in the quarter sequentially?

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Hey Randy, this is John. I think the plus 5% that we posted on member growth in Q1 was a direct result of the increase in retail traffic that also was plus 5%. So it just proves out that when we get customers in the door, we're able to convert them. Our capture rates have remained steady right around 10% -ish. So when we get those retail customers in, we're able to sign up members and that was the direct line to member growth.

[Randal Konik, Managing Director at Jefferies & Company Inc]

Great. And then just a follow-up there, a follow-up. When you look at the right, just to clarify on the price change on the base, was that a universal or in most markets? I just want to clarify there. And then as you think about titanium penetration, I think, again, for the second quarter in a row, about 23%.

[Randal Konik, Managing Director at Jefferies & Company Inc]

Can you just give us some perspective on any variability by markets to give us kind of your thoughts on where long term penetration might fit for titanium in the over the next few years? Thanks.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Yes. I'll start with your last question first, Randy. So we're happy with where our titanium mix sits today. As we've shared before, it's been beautifully accretive and the customer acceptance has exceeded our expectations. So we don't expect any degradation.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Again, we're happy with where that sits today. Our approach is more of a pull versus a push, allowing our customers to make their own choice and they've spoken very loudly. We're enjoying that. When you look at our membership mix 22.5% of our overall UWC members are in Titanium and that's held steady quarter over quarter. I forgot what was the first part of the Base price increase?

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Yes. So the answer to your base price. So in most markets, we are taking a price increase to $22.99 and that started roughly a month and a half ish ago and it's kind of a rolling rollout, if you will. So we expect the full impact to start hitting the till around May and then having it fully implemented by June.

[Randal Konik, Managing Director at Jefferies & Company Inc]

By the way, quick question on that. In the markets that haven't seen that saw the base price increase, have you seen a measurable difference in the uptake of titanium relative to that 23% overall or no?

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

No. The mix has remained the same and we just saw very

[Randal Konik, Managing Director at Jefferies & Company Inc]

yes. All

[Randal Konik, Managing Director at Jefferies & Company Inc]

right, cool.

[Randal Konik, Managing Director at Jefferies & Company Inc]

Thank you.

[Operator]

The next question comes from the line of David Bellinger from Mizuho. Please go ahead.

[David Bellinger, Director & Senior Analyst at Mizuho Financial Group]

Hey, thanks for the question. Good afternoon. Understanding this is a very, very fluid consumer backdrop here, but I thought some of the competitive comments were a little different this afternoon. It sounds more positive, especially with these restructurings happening in the space. You had a few quarters of decidedly positive comps here in a row.

[David Bellinger, Director & Senior Analyst at Mizuho Financial Group]

Should we start to think about this as MR is starting to hit some kind of inflection point here where sales could flow decidedly positive from here on out?

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Hey, David, this is John. I'll start and Jed you can add. But I think we're very fortunate that demand for express car wash services continues to grow. But consumers have more choice. I think the stuff that's in market today is not going away.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

So we are in this world where consumers having more choice. We have to get better at our craft and win the war on the ground by delivering exceptional customer experience. So what we've seen whenever there is competitive intrusion, we might see some impact to our business in the first year or year and a half, but then we start to see a rebound in those customers coming back. So that again gives us some encouragement that we're on the right track and we're from a value proposition delivering on all the fundamental tenants that our customers expect.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

And David, it seems like kind of the Battle Royale kind of peaked in 2023. When we look at the number of new competitor new builds within a three mile radius, Q1 of twenty twenty five, we had we estimate seven new competitors within a three mile radius. Q1 of twenty twenty five, '15 competitors and then going back to Q1 of twenty twenty three, '30 '3. So we're seeing fewer competitors coming within the existing trade areas that we operate. But to John's point, they're still the ones that came in 2023, we're still battling it out with them.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

But ultimately, we believe we're better positioned just with our superior product offering, our team and all the investments we've been making over the years to prevail.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Yes. And I think

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Jed if I could just add that rationality is setting in as our competitors are reevaluating their growth trajectories and realizing that it's not grow and scale at all costs and they got to be as smart as us.

[David Bellinger, Director & Senior Analyst at Mizuho Financial Group]

Yes. Thanks for those data points. Incredibly helpful. And then just my follow-up here. Looking at the UWC as a percentage of total wash sales, that went down year over year.

[David Bellinger, Director & Senior Analyst at Mizuho Financial Group]

I think that's the first time that's happened as a public company. How do you diagnose that? And just understanding that, it seems like the retail customers slowed a bit here in April. Stepping back, does UWC down year over year? Is that sort of an indicator that the retail customer could possibly be back?

[David Bellinger, Director & Senior Analyst at Mizuho Financial Group]

Is that a positive signal from retail?

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

Yes. The goal is not to get that to 100%. And so what's happening in Q1, David, what you're seeing is the plus 5% comp retail growth. As that retail we get more retail customers coming in, eventually pulls that number that subscription mix down just a little bit. So for us, it's not something that we get overly concerned about.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

We look at that data point, but we're not concerned. If anything, it's a good thing, especially when we're running at 10% capture rates because it translates to more members.

[David Bellinger, Director & Senior Analyst at Mizuho Financial Group]

Very good. Thanks guys.

[Operator]

Our next question comes from Peter Keith from Piper Sandler. Please go ahead.

[Peter Keith, Managing Director & Senior Research Analyst at Piper Sandler Companies]

Hey, thanks guys. Nice quarter. The tariffs make sense that you wouldn't have any direct exposure on day to day operations. I'm wondering on equipment and if there could be some equipment from your suppliers impacted by steel tariffs. Any talk of that coming off the car wash show that might increase the cost of new builds looking forward?

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Yes. As Jed mentioned in his prepared remarks, we have multiyear agreements in place with most of our major suppliers that provides a hedge against any inflationary inputs that could cause a spike for those that don't have that in place. So we feel pretty good with where we sit in talking to the OEMs and some of the key strategic players that we work alongside with. Given our buying power, we feel pretty good with all the knock on woods that outside of a few things perhaps there might be a slight uptick in towels for example. But outside of that, it won't be material.

[Peter Keith, Managing Director & Senior Research Analyst at Piper Sandler Companies]

Great. Okay. That's refreshing to hear. Moving on to marketing. So Jed had mentioned a slight uptick in marketing this year.

[Peter Keith, Managing Director & Senior Research Analyst at Piper Sandler Companies]

Done some work some of your peers you guys historically have spent about 05% on marketing and it does seem like some of your peers spend more like 2% to 3% of sales, so notably higher. So John, guess, you still kind of in a testing mode this year? Do you think you'll ever get above 1% of marketing as a percent of sales? It just seems like there is an opportunity to really drive more traffic here.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Yes, for sure. And really fair point. So none of we all want to increase our ad spend and drive more retail traffic, which then leads to UWC member conversion. But as we've shared, we want to be measured. So while we're accelerating our marketing efforts, we're measuring everything and making sure that the offers are not just targeted, but they're relevant and then they do ultimately drive incremental growth.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

And oftentimes measuring that incrementality is can be elusive for not just us but for our competitors. So once we have more data that supports the return on the advertising investment, we expect to do more and incrementally grow.

[Peter Keith, Managing Director & Senior Research Analyst at Piper Sandler Companies]

Very good. Thanks so much.

[Operator]

Our next question comes from Philip Lee from William Blair. Please go ahead.

[Phillip Blee, Equity Research Analyst at William Blair]

Hi, guys. Good afternoon. Thanks. Appreciate the question. If you're assuming that retail revenue is down more high single digits for the year, given a potentially softer consumer environment, should we then consider the membership is more flattish or just slightly up quarter over quarter for the remainder of the year?

[Phillip Blee, Equity Research Analyst at William Blair]

And then should we consider anything like impacts from churn during a potential recession? Just any color how to think about this metric evolving throughout the year would be very helpful.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

Yes. So membership growth, I guess, sequentially I mean from a year over year perspective, Philip, which is how model it out and think about it, we're expecting positive low single digit comp store member growth. And from a churn perspective, we're expecting our core churn levels to be in line with where we have been. One caveat is we built in a small period of elevated churn due to the base price increase. And we saw this in the six stores where we did the test last year when we pushed through that price increase going from $19.99 to $22.99 we see a slight uptick in churn for about one month.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

But then the churn levels will settle back in going into month two, three post the price increase. So we factored that into the guidance. We don't expect and consistent with what we saw in the financial crisis, what we saw in COVID, the subscription business consistent, it's predictable. We don't expect periods of elevated churn. People, especially those subscription members, they value a clean car despite the macro backdrop and that's consistent with what we've seen over time.

[Phillip Blee, Equity Research Analyst at William Blair]

Okay, great. And then just different topic, but understood on the lack of direct tariff impacts, but any color around the materials for greenfield expansion and ability to hit your store target for this year? Have you seen any early indicators around potential delays or lack of availability in materials later on this year that can make it harder to hit your full year target, especially given the second half has a bigger exposure there? Thank you.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

The pipeline is largely set not just for 2025, but we're starting to lock in 2026 as well. We haven't heard any early indicators. I mean, some whispering around masonry and concrete indirect through our general contractors, potentially some pressure there. But as we look at the total spend, we don't expect it to have a material impact on the cash on cash returns that we're able to generate. Lumber is another one that we've heard some a little bit of pressure with the just with the general contractors.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

If you think about how we source for our newbuilds, a lot of that sourced on more of a regional basis or a site by site basis with those general contractors.

[Phillip Blee, Equity Research Analyst at William Blair]

Great. Thanks a lot.

[Operator]

Our next question comes from Michael Lasser from UBS. Please go ahead.

[Michael Lasser, Equity Research Analyst - Hardlines, Broadlines & Food Retail at UBS Group]

Good evening. Thank you so much for taking my question. John, is there a case where the retail business is simply becoming more volatile from month to month, not just simply because of the overall state of the macro environment, but given how much capacity has been added to the wash industry over the last few years, there are simply fewer unattached customers for the retail business, which is going to create more volatility from period to period? And do you think there's any evidence that you saw that from the last four months where it seemed like retail was up double digits in January and then down to maybe as much as high single digits in April? Thank you very much.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Hey, Michael. Thanks for the question. I wholeheartedly reject your premise. And I say that with a smile on my face, because I like to give you a hard time. But no, if you look at Q1 and the plus five that we posted, I think that speaks to the health of our space.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

It speaks to the health of our business and how the demand for our service is omnipresent and continuous. With respect to the competitive impact and its impact on our retail volume, as I've previously shared, We're seeing a decel in new unit growth coming into the market. So it's slowing down dramatically right now, which again is going to be a favorable trend for us. So there'll be less competitive intrusion over time. That said, again, customers have more choices than ever before and we need to execute store level to win their business, earn their business day in and day out.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

And that's what we're really good at because we have built a massive member base of 2,200,000 members. We're processing over 100,000,000 cars on an annualized basis. And when you look at The U. S. Car park and the demand the growing demand for express exterior car washes and what we believe to be an undersubscribed TAM for membership, we're actually very bullish.

[Michael Lasser, Equity Research Analyst - Hardlines, Broadlines & Food Retail at UBS Group]

Got you. My follow-up question is on the heels of raising the base price membership shortly after rolling out premium,

[Michael Lasser, Equity Research Analyst - Hardlines, Broadlines & Food Retail at UBS Group]

all of

[Michael Lasser, Equity Research Analyst - Hardlines, Broadlines & Food Retail at UBS Group]

this is happening into what could be an accelerating broader inflationary environment. So does taking this much price or generating this much additional revenue per member give you pause in what could be a more pressured consumer environment? And if that were the case, given what happened the last time there was a lot of inflation, it did seem like the business slowed a bit. What levers would you push this time in order to drive the business? Thank you.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Thank you, Michael. Fair question. So again, we believe that our membership value offering is strong. And when you look at the $22.99 divided into what is a $10 on average median base retail price point, the consumer is actually getting tremendous value on that third visit and they do the calculus in their head. So at the third visit, they're getting a very good discount.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

The fourth visit in their minds is a free car wash. And so the affordability and then the value of membership is actually stronger than it ever has been. And I will add that the $22.99 price increase from $19.99 was in the overall scheme of things we believe to be very modest and one that we held the line for many, many years until we felt the time was right. So the pass through and what we're seeing right now and the lift in revenues, it was kind of supporting the decision.

[Michael Lasser, Equity Research Analyst - Hardlines, Broadlines & Food Retail at UBS Group]

And anything on the leverage you might call in the event there is a slowdown?

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Listen, we've managed through various economic cycles in the past. And as we ratchet up to continue to build and grow our business. If we were hit with any major headwinds, we would certainly, as a management team, look to ratchet down certain expenditures, so we can live to fight another day. But we our business, Michael, acts a little differently. And I know technically everyone wants to clump it in a consumer discretionary category, but it really acts like a staple.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

And in good times and in tough times people want to take care of their assets. They want they really value their vehicle. And the strong argument that if they're going to forego or delay that new car purchase, they really want to take care of their core assets. And so we benefit on either end.

[Michael Lasser, Equity Research Analyst - Hardlines, Broadlines & Food Retail at UBS Group]

Thank you very much and good luck.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

Thanks.

[Operator]

Our next question comes from Chris O'Cull from Stifel. Please go ahead.

[Chris O'cull, Managing Director at Stifel Financial Corp]

Thanks. Good afternoon, guys. I had a question about the media test. How do you guys plan to measure the return on that investment? And then I'm also curious how many markets you believe could be media efficient?

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Yes, Chris. Hey, this is John. So through the traditional ROAS, we're looking for a three to one lift when you look at ad spend and then revenue. But for our business, given the longer term lifetime value of a member, it really does support us doing more getting an actual better return. So through that traditional lens of three to one ratio, that's how we're measuring the promotional effectiveness of each campaign.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

But if we apply LTV target to that number, it actually makes it look like an even smarter investment.

[Chris O'cull, Managing Director at Stifel Financial Corp]

Do you have a sense for how many markets could use media?

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

So right now we're testing across six different markets and for the six we're seeing some very promising results against the controls and then iterating from each of those tests so that we can scale this program, but scale it again in a responsible way. So, over time if it justifies and helps move the needle, I could see it applying to almost every market.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

Yes. But Christy, you touched

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

on a really important point and something that we have had a lot of debate behind the scenes on and that's the efficiency. So which markets do we go in and test knowing that media spend is relatively fixed at the DMA level. And so the DMA where we only have six stores versus the DMA where we have 30 stores, you obviously get a bigger bang for the marketing buck when in those markets. But other hand, you don't want to completely neglect those stores in the smaller DMA. So a lot of debate that's also part of the calculus when we look at the return.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

But looking at all of this on a test and then relative to a control group and how much of an incremental lift are we getting relative to that control. The variable though as John said is that just the subscription element of the business and that lifetime value of those subscription members that you're able to convert.

[Chris O'cull, Managing Director at Stifel Financial Corp]

Okay. That's helpful. And then John, you mentioned developing innovative solution is obviously one of your strategic pillars and Titanium three sixty has obviously been a success. But I'm curious how would you characterize the pipeline of new ideas that you have for maybe future tests and how are you thinking about potential timing if you've got a new idea that you'd like to roll out?

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Yes. I think our cadence for new product solution introductions is roughly eighteen to twenty four months and that's the target. So we have some things in the hopper that we're not going to share on this call that we think are not just going be transformative extremely value added, but accretive ultimately to our top line and then subsequently our bottom line. So how can we create more value for our customers and also increase profitability? That's the goal and that's what we're working on right now.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

So we've got some really cool things through our in house R and D team that they're working on and we can't wait to share that with you sometime down the road.

[Chris O'cull, Managing Director at Stifel Financial Corp]

Okay. Fair enough. Thanks guys.

[Operator]

Our next question comes from Justin Kleber from Baird. Please go ahead.

[Justin Kleber, Senior Research Analyst at Baird]

Hey, good afternoon guys. Thanks for taking the questions. Wanted to first follow-up Jed on your churn comment as it relates to the base price increase. I know you're building that into the plan, but just curious the response you're seeing real time as this price increase has been implemented more broadly. Is it consistent with what you saw in the test markets?

[Justin Kleber, Senior Research Analyst at Baird]

Just any color on what you're seeing?

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

Yes, Justin. So when we look at the markets as we're rolling them out and just a little bit more color on a price increase in this market, you you take the in this industry, you take a price increase and those that are signing up will overnight they start paying the new $22.99 base price. You have to give a notice to your existing members. So it takes about thirty days before they start to recharge at that new $22.99 price point. And so we're watching this churn closely and so far everything it's consistent and in line with what we saw in the markets that we tested in at the end of last year.

[Justin Kleber, Senior Research Analyst at Baird]

Okay. And then just the we noticed you're at a higher level in Minnesota. It's like $25.99 So just curious what's driving that decision? And should we ultimately expect you to move towards that level over time across the chain?

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Yes. Good call out. You've done your research. So the great state of Minnesota, it's one of our strongest regions. And maybe now is a good time for me to give a shout out to all of team Minnesota who absolutely crushed their membership targets and goals.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

That's also a market where there's just a higher cost of living, higher wage rate. And so we have as we look at regional pricing, that's one market where we have a slightly different price point that's a little bit higher that's driving that revenue number.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

Yes. Justin, of

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

the inputs into this is we look at how we're priced relative to competition and that 22 many of our competitors are already at the higher price point and we'd look at that on a regional basis. That's also part of the math as we look at $22.99 versus $25.99 But Minnesota is an exception. We don't have that's not the goal. It's $22.99 is the going to be the system average.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

But I think if I

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

can just add one more thing. So even at that elevated price point, the fact that they have had elevated sign up numbers, again speaks to the point that at the end of the day, while price is important, it's not the determining factor of why people choose to sign up for the program.

[Justin Kleber, Senior Research Analyst at Baird]

All right. Thank you guys. I'll pass it on.

[Operator]

Our next question comes from John Heinbockel from Guggenheim. Please go ahead.

[John Heinbockel, Senior MD & Equity Research Analyst at Guggenheim Securities]

Hey, John. When you look at average per member visitation by month, how does that differ by tier of membership and geography? And I'm also curious if you go back, how has that increased over time? I imagine it has increased right over the last five years.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

So John, I don't have the membership frequency by tier, but I can get back to you on that one.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

It's consistent across all tiers.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Okay. That's a great question.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

About three, three point two times a month.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Well, I just got educated by Jed. So it's consistent, if you heard that, across all three segments, all three membership tiers, I should say. And then with respect to regionality, again, it's oftentimes the time of year. So during the wet months and the northern climates, we see a higher frequency in the summer months in the northern tiers. But again, it gets even more nuanced in California for example, in Northern California specifically, period is the summertime when agriculture is at high.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

And I can go down to love bugs down in the Southeast. I mean each market if you have pollen in Georgia those really are active spikes to demand in a beautiful

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

way.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

And John when you look at it when you look at that frequency of use over the last four or five years, it's been very consistent at that three to three point times per month. You do see to John's point a little bit of fluctuation just based on seasonality in the particular market. So Q4, we'll see it'll go from a three, three point two down to a 2.8 to a three visits per month, but nothing significant.

[John Heinbockel, Senior MD & Equity Research Analyst at Guggenheim Securities]

All right. And then just my the quick follow-up just on the mechanics of the price increase. So you give a thirty day notice and then the price goes up.

[John Heinbockel, Senior MD & Equity Research Analyst at Guggenheim Securities]

But are you going

[John Heinbockel, Senior MD & Equity Research Analyst at Guggenheim Securities]

to give would you give a thirty day notice all at once or you'd stagger it across the year, right? Because you think about a 15% increase on 40% of your business, right? You're not going to get that lift immediately. Is that like realized over a twelve or fifteen month period or sooner than that?

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Yes. So it's a little bit more nuance than that. The way we approach it is we broke the country into five different subcategories and part of it is the training that we need to do with the frontline team and we don't want to shortchange that. So we're pretty methodical and intentional making sure that we give all the tools on the ground so that the team members are prepared to answer any questions should they come their way. And then as we roll it out, I don't want to correct Jed earlier, but it's technically thirty to sixty days after the initial communication when we start to see the lift, right.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

So the way our members are billed over the course of a thirty day period, you have kind of an even distribution if you will from day one to day 30. So we give a thirty day notice then the existing members will start to those that signed up on the first will see their price increase and we'll see it rolling there through Jed are you following my logic, okay, through 60. So bottom line John is May is when we're starting to see things hit and Jed has got a little skip in his step as a result.

[John Heinbockel, Senior MD & Equity Research Analyst at Guggenheim Securities]

Thank you.

[Operator]

Our next question comes from Bobby Griffin from Raymond James. Please go ahead.

[Bobby Griffin, Managing Director at Raymond James Financial]

Good afternoon guys and congrats on a good start to the year. Just two quick questions for me. It might be too early, but have you seen anything from side of things on the markets where you did move the price? I think you mentioned some competitors aren't there yet. Did they come up?

[Bobby Griffin, Managing Director at Raymond James Financial]

Or is there any response there to share?

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Yes. So for the competitors that we compare ourselves against, we were getting to their median. There are certainly other players out there that have different pricing strategies and I can't speak to every single one of them. But we were definitely not the leader in price at 22.99 in almost every market where there was a whole bunch of folks that were already there.

[Bobby Griffin, Managing Director at Raymond James Financial]

Yes. I was just curious, did Amor, did they have any changes just where you look at the operating cost of this industry being more expensive than it was a couple of years, so everybody's pricing more rationally now. So they took advantage of a peer like you moving up and did they move up or they stayed the same, just anything around that?

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Yes, I think it's too early to tell. We continue to monitor and gather as much competitive data as we can. But it's I'm not in a position to opine on every region.

[Bobby Griffin, Managing Director at Raymond James Financial]

Fair enough. And then secondly for me, just on the chemical and labor line, continued nice performance there. Just curious what the guidance embeds for further labor optimization or chemical savings?

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

Yes. So as we had talked on the Q4 call, we have realized most of that chemical optimization and labor optimization during Q1. So the year over year improvement that you've seen, we do not expect that to continue in Q2, Q3 and Q4, at least at this point. It's all been flowed through on a year over year basis.

[Bobby Griffin, Managing Director at Raymond James Financial]

Thank you. Very helpful and good luck the rest of the year.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Thanks.

[Operator]

The next question comes from Tristan Thomas Martin from BMO Capital Markets. Please go ahead.

[Tristan Thomas-Martin, Leisure Analyst at BMO Capital Markets]

Hi, good afternoon.

[Tristan Thomas-Martin, Leisure Analyst at BMO Capital Markets]

Just one question for me.

[Tristan Thomas-Martin, Leisure Analyst at BMO Capital Markets]

You called out comp trends moderate a little bit in April. Anything else to kind of flag, whether it's consumer income demographics or geographic trends in specific markets would be helpful? Thank you.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Yes, I'll start. I think that the neat thing about our business is that it has universal appeal across all segments of the motoring public. And when we break down the different average household income cohorts, we see consistency across the entire portfolio. And that's terrific. So you would think that the lower end might be under more pressure, which again we're not saying that they're not, but it really hasn't impacted our business.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

So for that we feel very fortunate.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

And just to emphasize a couple of points that were made in the prepared remarks. So first of all, think as we look at April UWC sales, they remain really strong, resilient, as we've been saying all along consistent predictable source of sales. Easter, the timing of Easter, when you look at the impact on the month, it's about 100 basis point impact on the month, which translates to 30 basis to 40 basis point impact on quarter. So just that the Easter timing and then if you go back to 2024, there was some weather impact in Q1 and then April came back really strong. So we had a stronger April lap, particularly on retail side.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

So total as we said, total comp store sales, they do remain positive in April trending to that low single digit range.

[Tristan Thomas-Martin, Leisure Analyst at BMO Capital Markets]

Got it. Thank you.

[Operator]

Our next question comes from Thomas Wendler from Stephens. Please go ahead.

[Thomas Wendler, Analyst at Stephens Inc.]

Hey, good afternoon everyone. Just one quick one from me. I want to go back to the base membership churn one more time. Do you expect to see those customers returning as they shop around and kind of see your updated pricing is in line with the market? And then what would the timeline look like for those customers to return would be similar to the two year timeframe to outperform when a new competitor moves into the market?

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Yes. We saw in the first month post announcement a slight uptick in churn and then it came back down to historic levels literally in the second month. So immaterial in the overall scheme of things. And again, the very slight uptick in churn was offset by the benefits that we enjoyed from the price increase.

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

Keep in mind, it's the

[Jedidiah Gold, CFO & Treasurer at Mister Car Wash]

first time we've taken a UWC price increase in years fifteen years. And so we don't have a lot of data points to say if after six months, a year, two years these customers eventually come back. So we did not build any of that into the guidance or the model. But I think it's plausible to say that somewhere over time if they had a good experience with MR, they're eventually going to find their way back.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Yes. I always have to add Jed that unlike a gym when you cancel your membership, you can't get back into the gym. At MR Car Wash oftentimes people will temporarily suspend their membership if there's seasonal issues or reasons where they're going to their lake house what have you. But then they'll come back. And so for us a churn customer is not a lost customer in most cases and many times they default to retail.

[Thomas Wendler, Analyst at Stephens Inc.]

Perfect. I appreciate the color.

[Operator]

This concludes our question and answer session. I'll now turn the conference back to John Lai for closing comments.

[John Lai, Chairperson & Chief Executive Officer at Mister Car Wash]

Well, you all again for joining us today. We appreciate your interest in MiSTer and look forward to speaking with you again when we report our second quarter results.

[Operator]

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• Edward Plank, VP - Investor Relations
• John Lai, Chairperson & Chief Executive Officer
• Jedidiah Gold, CFO & Treasurer

Analysts

• Simeon Gutman, Managing Director at Morgan Stanley
• Simeon Gutman, Analyst at Morgan Stanley
• Randal Konik, Managing Director at Jefferies & Company Inc
• David Bellinger, Director & Senior Analyst at Mizuho Financial Group
• Peter Keith, Managing Director & Senior Research Analyst at Piper Sandler Companies
• Phillip Blee, Equity Research Analyst at William Blair
• Michael Lasser, Equity Research Analyst - Hardlines, Broadlines & Food Retail at UBS Group
• Chris O'cull, Managing Director at Stifel Financial Corp
• Justin Kleber, Senior Research Analyst at Baird
• John Heinbockel, Senior MD & Equity Research Analyst at Guggenheim Securities
• Bobby Griffin, Managing Director at Raymond James Financial
• Tristan Thomas-Martin, Leisure Analyst at BMO Capital Markets
• Thomas Wendler, Analyst at Stephens Inc.