EWCZ Stock Forecast & Price Target

European Wax Center Inc. has demonstrated resilience in its business model, evidenced by WaxPass sales experiencing close to a 2% year-over-year growth and stable core guest trends maintained throughout the year. The company has significantly improved guest engagement, with contactability rising to 57%, enhancing the effectiveness of personalized marketing efforts, and has implemented over 2,000 strategic initiatives leading to measurable performance gains and margin improvements. Finally, a reduction in SG&A expenses and a notable expansion of the operating margin to 36.1% indicate a positive trajectory towards net positive center growth by the end of 2026, supported by improved unit economics.

European Wax Center Inc. has experienced a notable decrease in total revenue, which fell 2.2% year-over-year to $54.2 million, despite outperforming consensus forecasts. The company is expecting significant net closures of franchise centers, projecting 23-28 closures for 2025, which reflects a deterioration from earlier expectations of only 10-12 new openings. Additionally, royalty fees have shown a decline of 1.6% year-over-year, contributing to an overall negative sales outlook, with anticipated full-year revenue expected to decrease by 3.8% year-over-year to $208.7 million.