Mister Car Wash, Inc. (NYSE:MCW) Q1 2024 Earnings Call Transcript

Jed Gold: Yeah. I think there’s always been a natural premiumization in the business, right? Going back to just before we launched Titanium, where we just had a base and a Platinum, it was roughly 55% Platinum, 45% base. You go back five years before that, it was actually the inverse. We had more base members than we had Platinum. So there’s always been this natural tailwind of customers over time trading into those more premium packages.

Vicky Liu: Got it.

Jed Gold: It’s really difficult to say where it taps out and the goal is to continue to grow that as high as we can get it.

Vicky Liu: Yeah. Thank you. And then my follow-up question, so with the high level of competition in space and a soft retail environment, are you seeing any trends in member acquisition costs?

John Lai: No. So our customer acquisition costs or member conversion costs, they’re relatively negligible, because, again, our focus, the beauty of our business is we’re taking an existing customer and trading them in. We’re not having to go spend money to get them in the door. So if there’s any customer acquisition investment, those will be on the retail side, which we could probably apply some of that to membership CAC [ph] as well, if — as we trade them in. So that’s the journey, that’s the path, but the overall expense is negligible today.

Vicky Liu: Thank you.

Jed Gold: Thanks, Vicky.

Operator: This concludes our question-and-answer session. I’d like to turn the conference back over to John Lai for any closing remarks.

John Lai: Thanks, Operator, and thanks everyone for joining our call today. At Mister Car Wash we have a massive growth opportunity in front of us and we’re in the early innings of our lifecycle. We’re being very deliberate and focused as we execute against our plan and we’re very optimistic about what lies ahead of us as we build through the long-term. I look forward to talking to you guys again in 90 days. Thank you so much.

Operator: The conference is now concluded. Thank you for attending today’s presentation and you may now disconnect.