European Wax Center, Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>European Wax Center, Inc. has submitted its 2023 10-K annual report, detailing financial performance and operational data.</b>

AI Summary

European Wax Center, Inc. (EWCZ) filed a Annual Report (10-K) with the SEC on March 6, 2024. European Wax Center, Inc. filed its 10-K report for the fiscal year ending January 6, 2024. The filing covers the period from December 27, 2020, to January 6, 2024, detailing financial activities and business operations. Key financial elements discussed include retained earnings, common stock, and various share-based payment arrangements. The report references specific dates for financial reporting periods, such as 2020-12-27 to 2021-12-25 and 2021-12-26 to 2022-12-31. The company's business address is listed as 5830 Granite Parkway, 3rd Floor, Plano, TX 75024.

Why It Matters

For investors and stakeholders tracking European Wax Center, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of European Wax Center's financial health and strategic positioning for the fiscal year 2023. Investors and analysts can use this report to assess the company's performance, understand its asset and liability structure, and evaluate future growth prospects.

Risk Assessment

Risk Level: medium — European Wax Center, Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine annual report. However, the absence of specific financial performance metrics like revenue or net income in the provided text necessitates a 'medium' risk assessment as a full analysis cannot be completed.

Analyst Insight

Review the full 10-K filing to extract detailed financial statements, management discussion and analysis, and risk factors to form a complete investment thesis.

Key Numbers

• 2024-01-06 — Fiscal Year End (Fiscal Year End)
• 2023 — Fiscal Year (FY 2023)
• 2021-12-26 — Reporting Period Start (Reporting period start date)
• 2022-12-31 — Reporting Period End (Reporting period end date)

Key Players & Entities

• European Wax Center, Inc. (company) — Filer name
• 0000950170-24-026892 (other) — Accession Number
• 20240106 (date) — Conformed Period of Report
• 20240306 (date) — Filed As Of Date
• 5830 Granite Parkway, 3rd Floor, Plano, TX 75024 (location) — Business Address
• 001-40714 (other) — SEC File Number

FAQ

Industry Context

European Wax Center operates in the personal services industry, specifically focusing on waxing services through a franchise model.

Regulatory Implications

The filing is a 10-K, a mandatory annual report required by the Securities and Exchange Commission (SEC) for publicly traded companies.

What Investors Should Do

1. Obtain and review the full 10-K document for detailed financial statements.
2. Analyze the Management's Discussion and Analysis (MD&A) section for insights into business performance.
3. Examine the Risk Factors section for potential challenges and uncertainties facing the company.

Year-Over-Year Comparison

This is the initial analysis of the 2023 10-K filing. Comparative data from previous filings would be needed for a full 'vs last filing' analysis.

Key Financial Figures

• $0.00001 — tered Class A common stock, par value $0.00001 per share EWCZ The Nasdaq Stock Mar
• $797 m — lion waxing services in 2023 generating $797 million, $899 million and $955 million of
• $899 million — rvices in 2023 generating $797 million, $899 million and $955 million of system-wide sales,
• $955 million — nerating $797 million, $899 million and $955 million of system-wide sales, respectively, acr
• $469 million — 021; System-wide sales increased from $469 million in fiscal year 2020 to $797 million in
• $797 million — rom $469 million in fiscal year 2020 to $797 million in fiscal year 2021; The Company's to
• $103 million — Company's total revenue increased from $103 million for the year ended December 26, 2020 to
• $179 million — for the year ended December 26, 2020 to $179 million for the year ended December 25, 2021;
• $21 million — net income improved from a net loss of $21 million in fiscal year 2020 to net income of $4
• $4 million — on in fiscal year 2020 to net income of $4 million in fiscal year 2021; and Adjusted EBI
• $20 million — 1; and Adjusted EBITDA increased from $20 million for the year ended December 26, 2020 to
• $64 million — for the year ended December 26, 2020 to $64 million for the year ended December 25, 2021.
• $207 million — for the year ended December 25, 2021 to $207 million for the year ended December 31, 2022;
• $4.0 million — Consolidated net income improved from $4.0 million in fiscal year 2021 to net income of $1
• $13.6 million — on in fiscal year 2021 to net income of $13.6 million in fiscal year 2022; and Adjusted EBI

Filing Documents

• ewcz-20240106.htm (10-K) — 3129KB
• ewcz-ex23_1.htm (EX-23.1) — 2KB
• ewcz-ex31_1.htm (EX-31.1) — 15KB
• ewcz-ex31_2.htm (EX-31.2) — 15KB
• ewcz-ex32_1.htm (EX-32.1) — 9KB
• ewcz-ex32_2.htm (EX-32.2) — 8KB
• ewcz-ex97_1.htm (EX-97.1) — 46KB
• img170492267_0.jpg (GRAPHIC) — 283KB
• 0000950170-24-026892.txt (&nbsp;) — 14103KB
• ewcz-20240106.xsd (EX-101.SCH) — 2118KB
• ewcz-20240106_htm.xml (XML) — 2362KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 9 Item 1B. Unresolved Staff Comments 39 Item 2.

Properties

Properties 40 Item 3.

Legal Proceedings

Legal Proceedings 40 Item 4. Mine Safety Disclosures 40 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 41 Item 6. Reserved. 44 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 45 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 59 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 60 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 93 Item 9A.

Controls and Procedures

Controls and Procedures 93 Item 9B. Other Information 93 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 93 PART III Item 10. Directors, Executive Officers and Corporate Governance 94 Item 11.

Executive Compensation

Executive Compensation 94 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 94 Item 13. Certain Relationships and Related Transactions, and Director Independence 94 Item 14. Principal Accounting Fees and Services 94 PART IV Item 15. Exhibits, Financial Statement Schedules 95 Item 16. Form 10-K Summary 96 i PART I It em 1. Business. Overview We are the largest and fastest-growing franchisor and operator of out-of-home ("OOH") waxing services in the United States by number of centers and system-wide sales. We delivered over 20 million waxing services in 2021, over 22 million waxing services in 2022 and over 23 million waxing services in 2023 generating $797 million, $899 million and $955 million of system-wide sales, respectively, across our highly-franchised network. We have a leading portfolio of centers operating in 1,044 locations across 45 states as of January 6, 2024. Of these locations, 1,038 are franchised centers operated by franchisees and six are corporate-owned centers. The European Wax Center brand is trusted, efficacious and accessible. Our culture is obsessed with our guest experience and we deliver a superior guest experience relative to smaller chains and independent salons. We offer guests high-quality, hygienic waxing services administered by our licensed, EWC-trained estheticians (our "wax specialists"), at our accessible and welcoming locations (our "centers"). Our technology-enabled guest interface simplifies and streamlines the guest experience with automated appointment scheduling and remote check-in capabilities, ensuring guest visits are convenient, hassle-free, and consistent across our network of centers. Our well-known, pre-paid Wax Pass program makes payment easy and convenient, fostering loyalty and return visits. Our loyal guests view us as a non-discretionary part of their personal-care and beauty regimens, providing us with a highly predictable and growing recurring revenue mo

View Full Filing

View this 10-K filing on SEC EDGAR