EWCZ Stock Forecast & Price Target

European Wax Center Inc has demonstrated a modest yet positive growth trajectory, with WaxPass sales increasing nearly 2% year-over-year and core guest trends remaining stable. The company's strategic initiatives, including over 2,000 touchpoints and enhanced guest communication, have resulted in significant operational improvements, marked by a 490 basis point expansion in operating margins to 36.1% for Q3 2025. Furthermore, management’s expectation of returning to net positive center growth by the end of 2026, combined with favorable unit economics, underscores a constructive outlook for the company’s financial performance.

European Wax Center Inc. has reported a decrease in total revenue of 2.2% year-over-year for the third quarter, totaling $54.2 million, indicating a challenging market environment despite surpassing consensus forecasts. The company's guidance for the upcoming year has worsened, expecting 12 new center openings while planning 35-40 closures, leading to a significant net reduction in locations, which raises concerns about long-term growth prospects. Furthermore, royalty fees have also declined by 1.6% year-over-year, reflecting a broader trend of diminishing system-wide sales, which decreased by 0.8% year-over-year.