Topic: How To Invest

Q: Pat: What is your recommendation on the long-term prospects for European Wax Center? Thanks.

Article Excerpt

A: European Wax Center Inc., $17.25, symbol EWCZ on Nasdaq (Shares outstanding: 63.5 million; Market cap: $1.1 billion; www.waxcenter,com), is a leading franchisor of out-of-home hair removal services. Founded in 2004 by brothers David and Joshua Coba, the company offers waxing services as well as its own line of products. These include products designed to soothe skin pre- and post-wax, prevent blemishes and slow regrowth. Meanwhile, European Wax Center makes a considerable amount of recurring revenue through its Wax Pass program, which allows guests to prepay for a set of visits or unlimited visits. At the end of April 1, 2023, Plano, Texas-based European Wax Center had 978 locations across 45 U.S. states. It went public in August 2021, selling 10.6 million shares to the public at $17 each. European Wax Center was backed by New York-based private equity firm General Atlantic. It has in the past backed large tech firms such as Airbnb Inc. and Uber Technologies Inc. This time, however, it went…