EWCZ Stock Forecast & Price Target

European Wax Center Inc. demonstrates a positive financial outlook, evidenced by a near 2% year-over-year growth in WaxPass sales and stable core guest trends, suggesting continued demand for its waxing services. The company realizes operational efficiencies, as shown by a 490 basis point expansion in the 3Q25 operating margin to 36.1%, alongside a significant leveraging of SG&A expenses, indicating improved cost management. Furthermore, management's expectations for net positive center growth by the end of 2026, coupled with strategic initiatives yielding measurable performance improvements, position the company for sustained growth and profitability in the near future.

European Wax Center Inc. has reported a 2.2% year-over-year decline in total revenue for the third quarter, totaling $54.2 million, raising concerns about the company's financial growth amid increased competition and changing consumer preferences. The company's adjusted selling, general, and administrative expenses decreased significantly by 14.8%, which, while indicating improved cost management, may not be sufficient to offset declining system-wide sales that fell by 0.8% year-over-year. Additionally, the expected net closures of 23 to 28 centers, alongside a downward revision of projected sales for FY25 to a 3.8% decline, highlights ongoing operational challenges that could negatively impact investor sentiment.