Conveyorized car wash service company Mister Car Wash (NYSE:MCW) reported revenue ahead of Wall Street’s expectations in Q1 CY2025, with sales up 9.4% year on year to $261.7 million. The company expects the full year’s revenue to be around $1.06 billion, close to analysts’ estimates. Its non-GAAP profit of $0.11 per share was in line with analysts’ consensus estimates.
Is now the time to buy Mister Car Wash? Find out in our full research report .
Mister Car Wash (MCW) Q1 CY2025 Highlights:
Company Overview
Formerly known as Hotshine Holdings, Mister Car Wash (NYSE:MCW) offers car washes across the United States through its conveyorized service.
Sales Growth
A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Mister Car Wash grew its sales at a tepid 9.9% compounded annual growth rate. This was below our standard for the consumer discretionary sector and is a poor baseline for our analysis.
Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Mister Car Wash’s recent performance shows its demand has slowed as its annualized revenue growth of 7.3% over the last two years was below its five-year trend.
Mister Car Wash also reports same-store sales, which show how much revenue its established locations generate. Over the last two years, Mister Car Wash’s same-store sales averaged 2.6% year-on-year growth. Because this number is lower than its revenue growth, we can see the opening of new locations is boosting the company’s top-line performance.
This quarter, Mister Car Wash reported year-on-year revenue growth of 9.4%, and its $261.7 million of revenue exceeded Wall Street’s estimates by 1.6%.
Looking ahead, sell-side analysts expect revenue to grow 5.6% over the next 12 months, a slight deceleration versus the last two years. This projection doesn't excite us and implies its products and services will see some demand headwinds.
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Operating Margin
Mister Car Wash’s operating margin might fluctuated slightly over the last 12 months but has remained more or less the same, averaging 18.6% over the last two years. This profitability was top-notch for a consumer discretionary business, showing it’s an well-run company with an efficient cost structure.
This quarter, Mister Car Wash generated an operating profit margin of 20.2%, up 2.5 percentage points year on year. This increase was a welcome development and shows it was more efficient.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Mister Car Wash’s EPS grew at a remarkable 20.2% compounded annual growth rate over the last five years, higher than its 9.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
In Q1, Mister Car Wash reported EPS at $0.11, up from $0.08 in the same quarter last year. This print beat analysts’ estimates by 8.3%. Over the next 12 months, Wall Street expects Mister Car Wash to perform poorly. Analysts forecast its full-year EPS of $0.40 will hit $0.45.
Key Takeaways from Mister Car Wash’s Q1 Results
We enjoyed seeing Mister Car Wash beat analysts’ same-store sales expectations this quarter. We were also happy its EPS outperformed Wall Street’s estimates. On the other hand, its full-year revenue guidance was in line. Overall, this quarter had some key positives. The stock traded up 3.4% to $7.09 immediately after reporting.
So do we think Mister Car Wash is an attractive buy at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free .