Shares of Mister Car Wash have taken a hit as the company revises its annual revenue guidance and reports lower-than-expected sales for the second quarter. The stock has plummeted by 14% to $7.59 in early Friday trading, adding to a decline of over 33% in the past year.
In an announcement after Thursday’s market close, the carwash operator revealed that it now anticipates sales to range between $913 million and $936 million for the year. This announcement revised their previous guidance of $925 million to $960 million downward, and fell short of analyst projections of $937.9 million, according to FactSet.
During the second quarter, Mister Car Wash generated $236.9 million in revenue, representing a modest growth of 5.2%. However, this figure missed analyst forecasts by nearly $5 million.
Driven Brands, another player in the carwash industry, also reported struggles, with declining foot traffic affecting its business. This revelation caused their shares to plunge by almost 50% in one day, reaching an all-time low of $13.15.
While these challenges may pose obstacles for Mister Car Wash and other industry competitors, only time will tell how they respond to these changing dynamics.