Mister Car Wash, Inc. (NYSE:MCW) Q2 2022 Earnings Conference Call August 11, 2022 4:30 PM ET

Company Participants

Megan Everett - Senior Director, Communications

John Lai - Chairperson and Chief Executive Officer

Jed Gold - Chief Financial Officer

Conference Call Participants

Randy Konik - Jefferies

Simeon Gutman - Morgan Stanley

Simeon Siegel - BMO Capital Markets

Michael Lasser - UBS

Elizabeth Suzuki - Bank of America

Chris O’Cull - Stifel

Ryan Sundby - William Blair

Operator

Good afternoon and welcome to Mister Car Wash’s Conference Call to discuss Financial Results for the Second Quarter of Fiscal 2022. [Operator Instructions] Please note, this call is being recorded and a reproduction of this call in whole or in part is not permitted without written authorization from the company. I would now like to turn the conference over to Ms. Megan Everett, Senior Director of Communications. Please go ahead, ma’am.

Megan Everett

Thank you. Good afternoon everyone and thank you for joining us today for Mister Car Wash’s Q2 2022 earnings call. Speaking today are Chairperson and Chief Executive Officer, John Lai; and Chief Financial Officer, Jed Gold. After John and Jed have made their formal remarks, we will open the call to questions.

Before we begin, I do need to remind everyone that comments made today 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. These statements speak as of today and except as may be required by law. The company does not have any obligation to update or revise such statements as circumstances change. During this call today, management will also refer to certain non-GAAP financial measures. A reconciliation between the GAAP and non-GAAP financial measures can be found in the company’s earnings press release issued earlier today and posted to the Investor Relations section of Mister Car Wash’s website at ir.mistercarwash.com.

With that, I will turn the call over to John. John?

John Lai

Thanks, Megan and good afternoon everyone and welcome to our Q2 earnings call. Coming into the quarter, I think there were some concerns around inflation and whether or not people might start pulling back and get in the car wash, particularly with gas prices soaring above $5 a gallon, and of course, the huge comp we were going up against. What we experienced was that demand remains solid. However, there was a little bit of softness on the retail side of our business, but that was offset by the strength of our Unlimited Wash Club program, which is 65% of our revenues, where our members remained amazingly loyal. Since our beginning, over 25 years ago, we’ve been through various economic cycles, and what we’ve seen throughout is that in good times and in tough times is the American consumer deeply values keeping their car clean and at $10 a wash or $20 for a club membership, it’s affordable, convenient and brings people joy. And to that end, we feel very fortunate to be in a space that is so resilient.