EWCZ Stock Forecast & Price Target

European Wax Center Inc. has demonstrated resilience with WaxPass sales showing close to 2% year-over-year growth and expectations for comparable sales to remain flat to up 1%, indicating steady demand for their services. The company's strategic initiatives, including over 2,000 touchpoints and improved marketing strategies, have resulted in measurable performance improvements, with engaged centers experiencing margin gains of up to 170 basis points. Additionally, the operating margin expanded by 490 basis points to 36.1%, significantly outperforming consensus estimates and highlighting the successful management of operating expenses and overall profitability.

European Wax Center Inc. reported a 2.2% year-over-year decline in total revenue for the third quarter, amounting to $54.2 million, despite outperforming consensus forecasts. The company's outlook is further strained by projected net center closures, with expectations of 23-28 net closures for 2025, significantly worsening from earlier forecasts of only 10-12 new center openings. Additionally, royalty fees dropped by 1.6% year-over-year, contributing to overall system-wide sales decline of 0.8%, which raises concerns about growth sustainability amid a contracting store network.