Mister Car Wash (MCW) 2 Nov 232023 Q3 Earnings call transcript

Good afternoon, and welcome to Mister Car Wash's conference call to discuss financial results for the Third Quarter ending September 30, 2023. [Operator Instructions] Please note, this call is being recorded, and the reproduction of this call in whole or in part is not permitted without written authorization from the company.

Speaking from management on today's call are John Lai, Chairperson and Chief Executive Officer; and Jed Gold, Chief Financial Officer. After John and Jed have made their formal remarks, we will open the call to questions.

The finance conference call references to non-GAAP financial measures will be made. to these included the press at in earlier and of measures comparable release mistercarwash.com. reconciliation section today been Relations have the posted complete measures company's most to GAAP issued of A the Investor website the company's earnings

are statements could materially As that advised cause the expectations. today actual to made differ the conditions. the as call forward-looking comments risks company's of These significant reminder, and market the and today's call company's to a include are currently based and from industry current of may company's made on statements subject uncertainties that this understanding present results on

company the latest annual they factors from applicable contained required Commission. the in by may company's choose no forward-looking statements and in or updated time the so Securities these the with are in Please regulations. such statements unless While law future, reports as the be disclaimer other to Exchange filings review to obligation may XX-K update under to XX-Q and time do

I call Mr. go Please Lai. over sir. the will John ahead, to now turn

feel store Good about in continue for and thank and QX upward our call. the to had sales Comp were everyone, quarter-over-quarter. a positive third our grow quarter joining business. We momentum solid afternoon, earnings you good and

openings build are New on schedule and nicely. performing

we're the early by encouraged results. is and Our ahead, launch steam Titanium full moving

revenues, we simultaneously our continue Our Unlimited continue remain our while future. our Wash customers, Club manage expenses the investing to of represent members loyal XX% to and who most for over steadfast and

quarter X greenfield of full XXX hit $XX locations. million. track on Adjusted million. to stores the X.X%. to and quarter, with we approximately our Comp We X% For are increased X% the sales and ended target increased $XXX grew store XX, year new sales opened to EBITDA

strength field of operations to yourself our the we it's value, our build Tucson headquarter staff, is you with. the to people team. takes that strive that an Mister to end the a has the As at and Car From it continue of truly of about Wash the day, strength company enduring our all army due

installing and is Facility in perfect building, and Titanium teams reconfiguring rents to Group differentiation, it the our awesome solution. is distribution our want our around groups to particular, in have recognize and who in-house. lower just Tucson a we latest the new of Our example of our list improvement, a Maintenance reconfiguration X comes long are. clock, worked Titanium innovations titanium launch that developed how I center proprietary When

with Repel and performance Titanium, and several the our research and chemists like HotShine, tremendous very products last value. Over team Shield and Wheel development have which offer decades, now Polish, truly staffed talented developed engineers unique exceptional

dry the The Mister's to what of balance is This cars frontline is but out efficiency we which our operate, ability leverage clean most the Part our We At quality. in who take shiny our in experience excel provide where customer to we of and really we speedy hear staff. in level which just have fashion, come not service customers a often. about it's to expect. the the we scientifically of are we efficiency our water core, very but putting process stores great program, to our with mechanization, in-house not car starts a at of pace. only pride operators we're chemical able technology and chemistry

The energy down we're and depth the into impressive in to brought conference over the in how was Last talent around leaders competitive we and throughout go and an win drill our of deep contagious. hosted from conference and our to discuss our where the national going on the room strategy we XXX week, increasingly execute leadership war country vision, the in environment.

nothing facing choice, a is quarter and recently about laser-focused and the believe are end, what are that round to is many keenly talk the We been been we bend something continuously of customer our for the competition further lot will we that is last control, when our prevail competition. customers this to we've years. and improving intent fourth can we as on has advantage. team the best on new ultimately a competitive ahead to growing us There given XXXX, operators And in As mentioned look which we and managing experience. call, business our to on

the believe market white space still every market with in additional We is we're in. underpenetrated

believe landscape car our tailwind wash and as to dynamic good more join for at more which The a car express continues is We evolve. for rational format The and our also industry. albeit and we regional thoughtful there's and battle carwash our healthy remains plan. adopt unlimited dominance wash pace, category believe new to users continues,

the remains questions service we're answer to a behaving, fortunate strong. discretionary acts for demand feel very a When be that asked that about we are than steady consumers more like currently our how with our is space and stable in

continue locations, we currently think evaluate to acquisitions look uses highest existing but markets capital densify stay other thoughtfully. scaling deploy of into, we'll and best where expenses the approach can return managing We are focused generate in building pace will to out and our continue for and on we we while As capital. greenfield at new to we'll markets disciplined to in a we and move that's manageable,

to end smiles skipping step, up delivering and to customers my prepared show who men of faces to like remarks women with on happiness a day, serve. every the of Mister their note I'd the and their with millions of we gratitude

commentary the Jed to the turn call quarter. financial around our I for results will to more provide now over

a and everyone. John, had third afternoon, quarter. solid Overall, good we you, Thank

forward. against strategic move We priorities our expenses, manage continue and to business the our execute

with me Titanium financial offering. update it in review have the positive our third I and rent and our Before business expectations, the new brief a XXX Titanium stores. technology running about impact as in Titanium details is the remain quarter improvement blowers early going implemented and results reconfigured results, offering, let of have on line We our we and on optimistic give of are results. Titanium today, our to you new The encouraging

slightly up to and momentum ahead our reconfigured installations now are plan. We pick to all implementation be year. continue We next by stores mid-QX expect of

We and to test and offers help trial various promotional adoption. Titanium to refine drive continue

likely previously, have to in higher slightly said we this during As is result period. churn implementation rates the

and this a and than year membership offset least by UWC of of We be business Titanium expect comfortable of remain target UWC portion XX% believe mix to implementation. over We at very more higher could subscription a of with our levels. the within meaningful represent initial retail time early

this timing should of the to will and offerings meaningfully the the the minimal rollouts to year due likely mentioned, multiyear and strategy previously it but As a revenue impact. next believe EBITDA and have and be impact accretive year will be promotional we

the turning Now quarter results. to third

and customers lower-priced members number remained The total During represented packages. remained the year. of revenue ranges, not nearly performance last XX% quarter. to we net quarter. UWC a increased X.X% the sales net third historic very rates trade added line quarter, business of stable and XX.X%. basis, subscription the total in down On of store increased sales the members X,XXX compared and did with X.X% UWC comparable increased the wash to year-over-year see Core we in sales in churn

exterior new in volumes quarter. ramping greenfields The toward of approximately development unit express remains X-wall the acquired years. X performance opened and third $X.X greenfield existing strong, X the we approximately locations of mature our average and million EBITDA side, in XX% our On margins of X stores under

the the managing optimizing where investments we On focused to remain we can business. making side of in health long-term on expense of the expenses the support the business, and we are growth

compared infrastructure, to stock-based cash have regional XX% XX.X%. to XX time expense increased expenses compensation operating percentage Other as gain/loss drivers points Excluding X.X%. sale and decreased revenue, store additional of increase expense a XX.X% result expense XXX car wash total completed G&A XX X.X% the last from hourly decreased during wages. from operating Labor last the in basis increased XX chemicals a to points the increased to The main more basis rent to sale basis basis operating expense expenses to leasebacks as $XX the increased points million. year. XX points [indiscernible] and basis year-over-year. optimizing XX store assets XX.X%. labor increased on quarter, of to and rent an the points fact leases increase same Other average year which of offset In partially we that primarily was an in by were

compensation construction and corporate stock-based expense, such to other insurances X% excluding support and expenses, offset were continued investments. functions, development G&A and lower partially support marketing, by which other was in driven previous growth investments by as increased areas and

the October rates of higher of from due expense and $XX.X expense of on the million into from slightly our proceeds of $XX.X rate to hedge year. interest the faster plan quarter, the in higher was leasebacks interest back to resulting During million due to Interest compared to expiration the the interest third last and last reinvesting business. year balance, timing pace the favorable closing cash sale increased

and XXXX. in Our due the compared awards third this the the per stock $XX.X net was XX.X% and XX.X% a benefit and quarter with the Adjusted change to certain for rate GAAP the which were quarter. was the adds to diluted quarter period and decrease state respectively, third income million in in expenses to year operating to our share, reported tax employee adjusted The expense effective for compared compensation benefit net the stock-based tax estimated year. $X.XX, exercised income of last primarily noncore related related back

from quarter XX quarter adjusted was increased was year. $XX.X EBITDA adjusted quarter last Third million, margin points third from EBITDA the last XX.X% from the year, a third an healthy of basis X.X% up

highlights. growth an to an debt completed of cash quarter, our demand and rising seeing leasebacks long-term equivalents flow and million, remains third interest and cash for aggregate approximately X the end we The sale-leaseback transactions third some are our and were the continues sheet us, Importantly, remain favorable $XX.X $XXX Despite cash balance sale-leaseback million. expansion. in balance healthy of sheet and open quarter on healthy, rate remains market million, we the for we to and self-fund Moving for continue was $XX.X environment, the to outstanding consideration rates. sale At

year. make are rest of let comments guidance few we around a Lastly, me and about thinking the how the

with our are plan, to Our we results with third Early line directional our tightly execute the of pleased and and we continue expectations, ahead trends and results business. manage in our Titanium in business. were the quarter expenses are

of think dictates a The level cautiousness for and consumer the challenging, environment this remainder macro of for remains we the the year. certain

our $XXX million As million, $XXX million we respectively. revenue $XXX leaving and $XXX million and adjusted unchanged EBITDA to a are guidance net provided reiterating to and result, our previously full ranges year of

well as we In and win to very on us our the best-in-class third proud results, closing, opportunity as to enthusiasm our delivering ourselves long team's as continue remain capitalizing their we quarter with game. I'm the are we of strategies. focused growth ahead for execution of the on pleased position

to With that, happy take questions. we're your

the question And Stanley. Instructions] Gutman with Morgan comes from Simeon [Operator first

actually Michael on is Simeon. This Kessler for

First, some as far then your any customer through year anything QX differences that guys, about how customers seen in or And UWC QX? retail I behave wanted behaves the the to earlier relative last If to that so? in core behaved? notice the versus member you in how we've ask as of weakness year how

kick I'll off. Yes, it

resort ticket and increases. retail having improvements seeing in nice our to without price quarter-over-quarter. volume as revenues We're well averages healthy in are So moderating growth a to

we've be overly from specifically as to not so careful been discount an a very promotional organization standpoint. And

are the that sustainable, healthy on seeing trends also we soft currently And and staying ground. believe on with we're knock wood all that so but the we're

Michael, little finer bit And point that. put a just Yes. to on

a compared last It going QX. negative a we single-digit call, digits talked still down digit, in to double high kind QX. being further that So was moderating about basis QX, -- improvement high was a on an moderated mid-single but QX, it during in QX to retail back of year-over-year

encouraged that the on the retail we're seeing trends by So side. here

line And good, up Jed, your famous is is right?

it. take We'll

or think, $XX Jed, follow-up, up one XX%. about million, $XX a on CapEx million guidance, Maybe bit, I coming which is

still is So I -- given step you've that, notable it's a how guess, it. pretty track about unit previously for it's been thinking on growth a up

what's color you're where So there on changing in just the CapEx seeing line? any maybe some and inflation

Yes. There's factors really there, X Michael.

remarks, now QX, end So done of to the we've by was QX. in the rollout the we're all the first, accelerating the of Titanium. rollout of prepared as we full been have targeting of as it middle What shared

for than one XX- bit talked the starts. So equipped what an getting XXXX, against out as timing build little stores faster had of projected. and Also, at we've of it's rate of just washes originally XX-month to Titanium a with more the with when these a spend these XXXX about, a we spend pipeline, our car

the little the a is seeing are leaseback construction bit in construction that months pressure, a cycle, construction While sale more piece timing up some a to of And most get also costs of ability bit. a last then are is there. there's spend inflationary But we proceeds X our of just up. little on also in

investment X XX% a net cash that about cash-on-cash is and million approximately year keeping on the So $X under development our -- and on X-year cash at still payback. returns construction

next And comes with question the Justin Baird. from Kleber

Just want guidance, implies pretty wide year to holding for full on start Obviously, XQ. Jed. the the a range

December how believe business would and the [indiscernible] comparison quarter-to-date here October? the anticipate November maybe notably tracking on as color versus I whether is any acceleration, you in quite and Just some

Yes.

XXXX bit get to the in talked a bit we've expect online, the in that greenfields in lap Also that as little easier just we opened about As earlier come we QX. year, the the picking faster, [indiscernible] will year. then move provide tailwind. Titanium they up bit nice a as And into a be tailwind with a that little little will of more also a

year plus in when little of October, bit the So some to and X.X. QX, October. months, at an -- to a look order acceleration plus October -- we year, our of full lapping last the the range, October high require X, end of will it we're September the a strongest compared hit were

And really improvement QX looking stack, the and in compared a X-year on on October a X-year stack saw a so slight X-year to stack. at we

finish through early on just costs if absorbing XQ? just that wondering year in of expense color. I guess, flowing obviously CapEx. been there's won't Titanium as the repeat next with some, I'm the you this helpful very much the That's excess operating -- business then And is rollout that the year

you lot were Certainly, over front. Yes. it labor for rates the particularly believe we When year, less -- pressure was the look last to -- labor on the up I X% half think about were at first the of I X% of compared up. quarter, a quarter, -- just rates labor

our half relief on Utilities, into the in see So the of we favorability in there called lot in utilities, on of that insurance was we're insurance. to year. favorability to also, the starting then where and out we're just the to finally, that of QX first expect bit half And during particularly We're continue some corporate QX, prepared pressure a little a also whereas seeing the second and side. remarks, this compared seeing half. some were on first in

there's would is this reconfiguration as Yes. a really Jed, of I is creep, these just on it and add we project we've and of this improvement. but I'd describe that noted and And this tunnel experience and as a transformation added, when we projects. tunnel before, things [indiscernible] not the what take fundamental scope with other come magnitude, our rents

cost, that long at a the we're certain for but And have so our things investments at also, our haul. I we to and make setting up think, those maintenance because, when stores expense we're look I line the to again, upfront, that's and come repairs happy

John And the question Guggenheim. comes Heinbockel from next with

John, parts. sort start, me of Let X

move $X markets, [ on want in of I thought be there And Your thought premium maybe you and $X is might a more encourage then gap that to membership So So pricing titanium impacts think towards of how qualities? and there gap that maybe right? membership architecture, a people between ] others, a and some $XX. Titanium.

quality. So think do but higher that? little about a membership you a little less little price, a higher How

Yes.

I spot on, think you're John.

be clear to be do it's communication in things of folks platinum there point. ample to compress we that's look that to are members directionally, kind how easier that existing they and a into rules want between Titanium design. it overall to And make certain new price reach our upgrade transition part and for more Again, going our very our we as and delta from to And we so notice. to that standpoint of are need given a within we so

working believe that price do we as what end the of settling day, we nailed goals. you that more mechanics Titanium we're as on the of to objectives speak. So through more be, to it. the number anything balancing make At to we packages the can in we're help the are reach we that our your in members our behind increasing would maximizing But within premium and mutual comment, while attractive us each this achieve of profitability. of But

getting versus of close right. has build, second right? the you? that seems idea And a we're right? like The to All -- how attractive Or of then buy cost it I buy are be to make more to closer. to build, we guess And topic,

Your within or are side? the more thought on buy on economics where compelling the are competitive we that? And reach

it's -- Yes, we're getting there.

definitely [ down. ] M&A The up. is on prices So cost build going coming are of

where And point a both so become will equally be there attractive.

our to important the between pros Greenfields, greenfield and day equation. market. company, not for accelerate set control new up note cons M&A at we -- markets is will also sides to a destiny, want. return. the that, attractive particularly There's that but to say, we it's as the think the where into an ] and way stores and us, highest really can I we move can we're agnostic generate as that design our the and both going specifications But to capital path into deploy own acquisitions, look end we in to path we of and new a of [

equation. always with which of coupled will bolt-ons, be So the that, part

of quite direction. So moving that it's yet that terms in there we're in but not equilibrium point,

Michael next The from Lasser comes with Instructions] UBS. question [Operator

is time, a net in competitive where increases your Car given attract outset the increasingly environment has to environment, you've an of for the your competitive you the to smallest club, been John, mentioned you've changing reported remarks, a long a dynamics operated Wash that are of members it's Mister company? just that the new additions publicly traded more since X difficult X,XXX while

Michael. questions X you're of kind question, famous that for. there's Well, What's inside

answer net a the member growth it's middle greenfield through haven't converting slowdown to relatively level we're when part into locations. UWC our standpoint. to out. get happening this a flat multiple So objectives QX store rolling intentional. We have Titanium was was though, as QX, of our question, your program hard and seen And you to down in And member in we growth the that somewhat existing launching prioritized members simultaneously. from really

So of Titanium and focusing to which rather than take membership. let's we them -- on had converting what [indiscernible] existing on focus, our customers members is introduce side into the been primary retail

And will important in be mode going focus that to now, so our execution over that are Titanium we're sides to quarters. But and equally primary -- time. over the next several on of both be us equally, that's right

with not about felt your so our to we current impact respect any environment. competition, And meaningful due trajectory have to to growth the competitive question

I of been at point, members [indiscernible] look that's recent we're titanium other even think, one pronounced. is more of first UWC point, at about have line X.X now Titanium. highlighting. top we been ] look the where years, worth million to to growth, the existing and driving But [ into it's that's that through excited are more that's these when UWC is them half trading at -- and year. optimistic really our in Michael, of the sign-ups you the UWC And have you typically XX% the When seasonality XX% because John's

you're Does around in customers. rather than would you mean that the Can comments that I you with new which alluded core explain the consistent Jed, higher is John's -- churn, overall the think on churn the on XXXX? especially does some had be stable? conversions your new we focusing for how And the churn how growth next you to experiencing business frame several comments, that member the being of and into source impact And quarters in of growth? that membership last retail softer then heels think and a being year about should noted

Yes.

those get that really testing and we've that initiatives, we're found promotions. remarks roll accelerate at slightly really QX, the where in it marketing mix drive is price to about also prepared price trying QX, pricing, we churn, new higher happens is packages. talk that various So more works slight we've we of we churn. been talked shared the to calls, try and it in And we premium to to about where when in in trial when we trial uptick customers introductory what see What core churn. and regular have comes talked about Titanium offers, previous the a And

an it with uptick rolling For was churn to promotional in UWC QX, about [ back ] members regular. of our X.X

concerned outsized in to and drive and making keeping a it's or but we at many point, sure we're end though So overly that objective premium anything close mix this as package members be not about something eye that get is to on the as can. our

add too. if Jed, I just could

-- been and we've slope. in come a is out leaning at where be of you think responsible we it that is an there I a some way month. offers, a adage, $X.XX to trial haven't it's offers of for heavily cost the getting is way churn. in some the the which could [indiscernible], a in and but aggressive We've a smart, those And slippery cost, introductory that stuff seen And higher too price -- which going not folks on have $X.XX really very you're there's call member old frankly, acquire going offers. equation, to in the side if that quite to you but need and the I member keep which silly are, first

inclined not any there. -- quarters. One customers canary did we of think not the other is as more much for quarter, as we Customers cancel have folks look usage. of see is past are of washing downtick they see a if and really usage they're out in using. important point, during UWC the When hear we a UWC at to yellow Obviously, Michael, I kind it's to subscription proverbial customer

comes question next the And Randy Konik from with Jefferies.

Jed. Yes. for a I question you, guess

back -- retail of the to the about business. talked the You side

seeing stands high single based and and against side ledger you in type retail, that little the to quarter negative right that the start the just through a double-digit and is better. down the it third today quarter, different seeing kind I across for double-digit retail as in do quarter that kind get what in the what on positive as now? go quarter negative that the the trend that line. the of kind on think first of get towards first compare, regions, Based think towards based -- said we you're as -- we bit second flattish up was slightly you comps should comparison can just think want that I to up of we of go against on you're of or get a business feel

you Yes, Wash trade is -- go the Club to look retail into when the even XX Unlimited last look our you our at at and goal we Randy, program. X, last customers back years, over this the when

mix we historically, mid-single higher-priced should, run trading essentially, the this we so perhaps you but like digits. customer. of has that as we're the really into run retail willingly it's predictive And been negative reoccurring retail that that, offering. and haven't Retail negative digits. it But And price framing accepting a customer has shift mid-single lose UWC

a baseline forward. -- digits. I for And a assumption fair been think So it's mid-single about about think we it's as down been historically, on that's go

it of at multiyear I'm we couple the over be core about we trying just thinking and about a should sense the in actually from little up. basis you're of a of we Understood. some that how years? be be for Just get few And over price next years, taking the up? we a mixing how What thinking about mix framing core period a thinking on of then us of plus to be just Titanium shift. you're should about should sense pricing? multiyear should give just of should single-digit about how should thinking Like pricing growth when thinking how grow low thinking because next how it

testing. Yes, early we Randy, that's how Titanium still would trickier as It's and look at I consider it's days what a one. relatively

and in put mix. encouraged that are very We being at able on least to optimistic emphasis XX%

of and but pointing I is retail well, UWC it least you've and we talk worth the side it's XX%, do promotions doing We're mid-teens we're ticket on continue to it's not tailwind just retail consumer results. natural there's a -- provide think, that consumer not And a any the This XXXX natural to year just and just encouraging wanting say internally seeing or on as so of to the out as XXXX which educating mix by the basis the mix titanium, to in the perspective. believe side first discounting going visit. happen it's benefits But well. the it's -- there, to over seeing retail X. at on and got plays to customers that going But from because is the out try about Titanium that end also into hard happen going then time. really the we of continue a to the how in

what look mix excited weighted more us that is why were member continue at just going where pre-titanium, when Yes, in we're so to like, to member it the Randy, again very member to enjoy and see in natural without I'd it we the naturally and add about heavily It towards want that's And naturally we member premium a they Titanium spike gives sticky effort now confidence to because a throughout we had titanium a is concerted our way that's and do not great stronger we're base what a was really we're that years. membership. going gravitating additional drive premium over it. the our time. package into a optimistic stack We mix But to program, in folks mix. the that to value And how gravitate trying put we're premium customers we've with that value platinum internally strong such towards that value had this program. towards look

question the Chris comes from next [Operator O'Cull Instructions] with Stifel. And

And was company of gross how a next capital a more is think that washes a number plan is if the do a opportunities allocation of level you wondering, is year? just acquisitions? or have wondering the this expectation as Jed, Is for you reasonable similar I'm there of develop to there's I kind CapEx, similar about thinking for next year? year for

plan next now, Right we a main say, on level that self-fund more But I XXXX we'll allocation the current at as of call. But as kind our into specifics plan that we variables is now think mean, right our investments X make kind we capital from I high what a Yes. really perspective, allocation. growth would to about provide capital it's our to get of next into year.

this that on capital think in year, to Just acquisition this greenfields, to XXXX. in point. and That's and in is then within at we I develop XXX% load off. good the rate fight and do capital also where What leasebacks approximate the cap we plan than here XXXX in would this so broader will front. as there, what strategy. we're feel allocation say just our floating a the rates [indiscernible] variable that able human team greenfields we what XX about about the the for XXXX but existing more interest happens what what debt happens happens existing environment

year-over-year our that And we've to if you will, need committed I proud in we've when love, sweating if the additional of That Yes. a been that number identified we of very said, if portfolio, given making we assets, there reinvestment. are the at of in stores in portfolio, not the some that core you our are those stores. again, size are can too, we're of look Chris, will. add, that investments

that away And going so we're be too. to pile chipping

of as greenfield So return he's power is But of up to while highest measure, sole over if ultimately internally the allocations strong reduced are those and result. Jed wield neglect a a if use capital the is lot we our famous, going a stores older some obviously, said, capital, time, invested we That case. [ AUVs really that's ]. of show in as

sliver to away it's we of going count that at I'm to as pile we're bulk our be store a overall our happy But chipping because at are can handle. So small the again, a great in that pace shape. report stores of that well, very

in bonus depreciation falloff the overall changes rate and any That's are yield the just helpful. cap environment? seeing Jed, you in given

we're sale at -- this got rate cap debt that funding and EPS at that perspective looking at out is and favorable right we're deals at rate the Part We've we'll interest leaseback a and to Not are the we're we interest cap done. the rates Chris. versus breakeven cap most look rate leaseback is, what getting stores what point, market to prevailing external at time. as sale signing on through another from is those. of number when of LOIs do are accretive relative still now, I to that calculating getting good analysis market mean

there, So there's lot but still we a very continue we cushion believe economics. of to favorable see

great in nurturing I our and we're us. space. to relationships for -- think sure rent paying make having with anybody those operations the to got to national brokers We've that's and REITs been us, of a that's to leasebacks it's than there, open something longer a that time important we this keeping doing for market that we invest track that testament and ourselves and sale our are great pride and and relationships continue team, great record our with out

a if think boxes. you're doing management track project with to a long that history underwrite check a right. has of I record, underwrite to Yes. project, team strong great going and going Jed, it we you're a And a company those a

sense. Yes, that makes

Okay.

causes any now. I I'm driving you think mean, understand to industry several kind for softness declining -- of traffic you I there's if retail wondering with of quarters just that try company seen what's root of the research And do this I'm and has guys consecutive consumer also, driving if guys have retail know to -- the the Just And I discussion any as the any or softness? And what believe terms other companies? soft just been just in is the well. has wondering completed

Yes.

We a consumer this So can John. a theories. is that Chris, point to. lot of we study have There's don't

aggressively. happy certain beliefs or And have One there's at base a very pushing points, aggressive [indiscernible]. conservative in pricing that being with on approach my this wash, is at And been just is And an service an in clearly think I [indiscernible] of an industry, effect. a theory. for pushing not but my frequency. relatively and that's think prudent going that relatively been we as elastic impact higher the we're $XX I to you And and had result, overly could of some that retail that it's lot folks has a have been as our have pricing not again, that

the question Tristan from comes And next Thomas-Martin Capital with BMO Markets.

pull lot competitive back, starting you? But Just more for landscape gotten. two a any does that specific -- it's now create the opportunities are people the of talk to been There's about competitive, obviously questions.

XXX%. Absolutely,

We're the are that growing So on and [indiscernible] in markets. focusing and than right and years, healthy. into more have say expanding calculated really is seeing of couple I last footprints people would good than new being existing measured which their now, much less we definitely

anticipate of moderate it's growth platforms we're to growth new reasons, and back to but we capital. [indiscernible] primarily plans a on access actually seeing variety So some their unit for

look you just there the been home quality whatever because were quantity craziness and last end, it the ago, versus X literally more XXx buying our over about the of years, number, for north coming is the all from And a are to at also that about like the the several and while has in roost, which scale of were years they certain So feels get-go on during come at market scaling to starting to will. focus and focus, multiples that XXx. trading could, we platforms is as things to reset there's down, a now which if were right a chicken

cautious be like But the to going highly and trigger and others, pull we're being as very where opportunities are M&A. a when disciplined and we, organization. in to us choosing this create selective So and number of on an measured, for will

the the -- And Mister continues softer. Okay. get If to just worse, you is it what recession then mentioned playbook? macro Wash Car

Well, now, right have really a with margins. we We I'd healthy tight ship. strong run -- start super AUVs

do of a of proud the organization the in And because have there's our our -- we pipeline front. We over happy making and too these than and that expense a -- we have running to going in part [indiscernible] capital model But there's we're and of. that volume material future pipeline. ] a people [indiscernible], is stores we're our [ volume to higher-volume we investment have around for leaders easier we're XXX store. human in the actually it's staffing higher stores, right, that future store really the is operating that side lower idea it's a it doing our what MITs the err and line make on and But is operate right staffing, high-potential lean investments are to running be

of but on hit stuff able the fan if be got we'd it temporary storm. I a levers. things weather really And pull some So could the for us, mean to and tight. those slowdown We think may back

last on been XX that, years. thing we have add I'd just So -- around we've for managed so

stronger, We have managed through economic have multiple and frankly, cycles from emerged each one. quite

don't And -- this to we'll believe through manage we're it, and we fine. as to that so be anticipate well going emerge managing we're we able through one as just

management turn question-and-answer session. like for to comments. to any the And would the I floor closing concludes this

Well, thank you, everybody.

We in next joining. the what call. leader love and to that's feel growing the we very quarterly on back space with everyone, look we do. who you a operators, serve, wash car forward we We checking fortunate for love to guys year-over-year. we be Thanks, As

attending lines. now Thank may now has and conference you. you Thank today's presentation, The concluded. for you your disconnect