EXHIBIT 99.1 European Wax Center, Inc. Reports Fourth Quarter and Fiscal Year 2023 Results Issues fiscal 2024 outlook Fiscal Year 2023 versus 2022 Plano, TX, March 6, 2024 - Today, European Wax Center, Inc. (NASDAQ: EWCZ), the largest and fastest-growing franchisor and operator of out-of-home waxing services in the United States, reports financial results for the 14 and 53 weeks ended January 6, 2024. David Willis, Chief Executive Officer of European Wax Center, Inc. stated: "European Wax Center delivered a ...

Part I [Business](index=3&type=section&id=Item%201.%20Business) European Wax Center, Inc. is the largest U.S. franchisor of out-of-home waxing services, operating a highly-franchised, asset-light model - The company operates **1,044 locations** across 45 states as of January 6, 2024, with **99% (1,038)** being franchised centers and six being corporate-owned[11](index=11&type=chunk) System-Wide Sales and Center Growth (2021-2023) | Metric | Fiscal Year 2023 | Fiscal Year 2022 | Fiscal Year 2021 | | :--- | :--- | :--- | :--- | | System-Wide Sales | $955 million | $899 million | $797 million | | Total Centers | 1,044 | 944 | 853 | | Total Revenue | $221 million | $207 million | $179 million | | Net Income | $12 million | $14 million | $4 million | | Adjusted EBITDA | $76 million | $72 million | $64 million | - The company believes its total addressable domestic market is over **$18 billion**, with its current market share at approximately **5%**; the market is highly fragmented, with over **10,000 independent operators**[18](index=18&type=chunk)[19](index=19&type=chunk) - Key growth strategies include expanding the national footprint, increasing brand awareness through performance and brand marketing, driving system-wide sales via Wax Pass adoption and data analytics, and expanding profit margins through its scalable infrastructure[30](index=30&type=chunk)[33](index=33&type=chunk)[36](index=36&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company's operations are subject to numerous risks, primarily stemming from its heavy reliance on the financial success and operational compliance of its franchisees - **Franchisee Dependence:** Nearly all centers are franchisee-owned, making the company highly dependent on their operational and financial success; franchisee failure, non-compliance, or inability to grow could harm the brand and revenue[80](index=80&type=chunk)[174](index=174&type=chunk) - **Cybersecurity and Data Privacy:** The business is heavily dependent on IT systems for operations and payment processing; a failure, interruption, or security breach could impair operations, damage the company's reputation, and lead to significant costs and litigation, especially concerning guest data and PII[112](index=112&type=chunk)[116](index=116&type=chunk)[119](index=119&type=chunk) - **Competition:** The company faces high levels of competition from over **10,000 independent waxing operators**, nearly **100,000 beauty salons**, and various alternative hair removal solutions, which could impact market share and profitability[104](index=104&type=chunk) - **Organizational Structure & TRA:** As a holding company, its principal asset is its interest in EWC Ventures; it is dependent on distributions from EWC Ventures to pay taxes and make significant payments under the Tax Receivable Agreement (TRA) to pre-IPO members, which could amount to an estimated **$269.0 million** over 18 years[211](index=211&type=chunk)[221](index=221&type=chunk)[223](index=223&type=chunk) - **Supply Chain:** The company depends on a limited number of key international suppliers for its proprietary Comfort Wax and branded retail products; any disruption, price increase, or quality issue could adversely affect operations and results[192](index=192&type=chunk)[193](index=193&type=chunk) [Unresolved Staff Comments](index=75&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments - None[251](index=251&type=chunk) [Properties](index=77&type=section&id=Item%202.%20Properties) As of January 6, 2024, the company's network consisted of 1,044 centers; the company holds leases for its six corporate-owned centers and its corporate headquarters in Plano, Texas - As of January 6, 2024, there were **1,044 franchised and corporate-owned centers**; the company leases six actively operating corporate-owned centers and its corporate headquarters in Plano, Texas[257](index=257&type=chunk) [Legal Proceedings](index=77&type=section&id=Item%203.%20Legal%20Proceedings) The company is subject to litigation from time to time in the ordinary course of business - The company may be a defendant in litigation arising from the ordinary course of business but does not expect any material impact from the resolution of these proceedings[258](index=258&type=chunk) [Mine Safety Disclosures](index=77&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - None[259](index=259&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=78&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's Class A common stock trades on the Nasdaq under the symbol "EWCZ"; in April 2022, a special cash dividend of $3.30 per share was declared - The company's Class A common stock is traded on the Nasdaq Stock Market LLC under the symbol "**EWCZ**"[262](index=262&type=chunk) - On April 11, 2022, the Board declared a special cash dividend of **$122.2 million**, or **$3.30 per share** of Class A common stock[263](index=263&type=chunk) - During the fourth quarter of 2023, the company repurchased **1,690,896 shares** of Class A common stock for approximately **$23.6 million**, completing its **$40.0 million** share repurchase plan authorized in November 2022[271](index=271&type=chunk) [Reserved](index=81&type=section&id=Item%206.%20Reserved) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=82&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal year 2023, total revenue grew 6.6% to $221.0 million, driven by 100 net new center openings and a 2.9% increase in same-store sales Key Business Metrics (Fiscal Year 2023 vs. 2022) | Metric | FY 2023 | FY 2022 | | :--- | :--- | :--- | | System-wide centers (end of period) | 1,044 | 944 | | System-wide sales | $955.0M | $898.6M | | Same-store sales growth | 2.9% | 10.4% | | New center openings (net) | 100 | 91 | | Average Unit Volume (AUV) | $961K | $1,000K | Consolidated Results of Operations (Fiscal Year 2023 vs. 2022) (in thousands) | Metric | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Total revenue | $221,024 | $207,351 | | Income from operations | $44,856 | $40,276 | | Net income | $12,346 | $13,613 | | Adjusted EBITDA | $76,014 | $71,611 | - Total revenue increased by **$13.7 million (6.6%)** in FY2023, primarily due to **100 net new center openings** and an additional offering of medical products[316](index=316&type=chunk) - The company's primary sources of liquidity are cash from operations and its securitized financing facility; as of January 6, 2024, cash and cash equivalents were **$52.7 million**[334](index=334&type=chunk) - As of January 6, 2024, the company recorded a liability of **$206.6 million** for expected future payments under the Tax Receivable Agreement (TRA)[380](index=380&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=109&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure is to interest rate changes, as its Variable Funding Notes bear a variable rate, although they were undrawn as of January 6, 2024 - The primary market risk is interest rate sensitivity related to the Variable Funding Notes, which bear a variable interest rate; however, these notes were undrawn as of January 6, 2024[384](index=384&type=chunk)[385](index=385&type=chunk) - The company is exposed to commodity price risk, as the pricing of wax from significant suppliers can be adjusted based on raw material costs[387](index=387&type=chunk) [Financial Statements and Supplementary Data](index=110&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's audited consolidated financial statements for the fiscal years ended January 6, 2024, December 31, 2022, and December 25, 2021, including the Report of Independent Registered Public Accounting Firm, Consolidated Balance Sheets, Statements of Operations, Statements of Comprehensive Income, Statements of Cash Flows, Statements of Equity, and the accompanying notes Consolidated Balance Sheet Highlights (as of Jan 6, 2024) (in thousands) | Metric | Amount | | :--- | :--- | | **Assets** | | | Cash and cash equivalents | $52,735 | | Total current assets | $95,497 | | Goodwill | $328,551 | | Total assets | $735,726 | | **Liabilities & Equity** | | | Long-term debt, net | $372,000 | | Tax receivable agreement liability | $206,636 | | Total liabilities | $619,114 | | Total stockholders' equity | $116,612 | Consolidated Statement of Operations Highlights (Year ended Jan 6, 2024) (in thousands) | Metric | Amount | | :--- | :--- | | Total revenue | $221,024 | | Income from operations | $44,856 | | Net income | $12,346 | | Net income attributable to European Wax Center, Inc. | $8,931 | Consolidated Statement of Cash Flows Highlights (Year ended Jan 6, 2024) (in thousands) | Metric | Amount | | :--- | :--- | | Net cash provided by operating activities | $55,602 | | Net cash used in investing activities | ($785) | | Net cash used in financing activities | ($46,383) | | Net increase in cash | $8,434 | [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=163&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[563](index=563&type=chunk) [Controls and Procedures](index=163&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of January 6, 2024 - Based on an evaluation, the CEO and CFO concluded that as of January 6, 2024, the company's disclosure controls and procedures were effective[565](index=565&type=chunk) - Management concluded that as of January 6, 2024, the company's internal control over financial reporting is effective based on the COSO framework[568](index=568&type=chunk) [Other Information](index=163&type=section&id=Item%209B.%20Other%20Information) The company reports no other information - None[571](index=571&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=163&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - None[572](index=572&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Executive Compensation, Security Ownership, and Principal Accountant Fees](index=165&type=section&id=Items%2010-14) The information required for Items 10 through 14 is incorporated by reference from the company's Definitive Proxy Statement for its 2024 Annual Meeting of Stockholders, which is to be filed with the SEC within 120 days after the end of the fiscal year - Information for Directors, Executive Officers, Corporate Governance (Item 10), Executive Compensation (Item 11), Security Ownership (Item 12), Certain Relationships and Related Transactions (Item 13), and Principal Accounting Fees and Services (Item 14) is incorporated by reference from the company's forthcoming proxy statement[574](index=574&type=chunk)[575](index=575&type=chunk)[576](index=576&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=166&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the exhibits filed with or incorporated by reference into the Form 10-K, including organizational documents, material contracts, and certifications - This item lists all exhibits filed as part of the annual report, including the Reorganization Agreement, Certificate of Incorporation, debt agreements, and various incentive plans[582](index=582&type=chunk) [Form 10-K Summary](index=168&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company provides no Form 10-K summary - None[584](index=584&type=chunk)

Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. Is European Wax Center, Inc. (EWCZ) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Consumer Staples peers, we might be able to answer that question. European Wax Center, Inc. is a member of our Consumer Staples group, which includes 194 different companies and currently sits at #14 in the Zacks Sector Rank. The Zacks Sector ...

Analysts on Wall Street project that European Wax Center, Inc. (EWCZ) will announce quarterly earnings of $0.08 per share in its forthcoming report, representing a decline of 93.4% year over year. Revenues are projected to reach $53.98 million, increasing 0.9% from the same quarter last year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prior to a co ...

PLANO, Texas, Feb. 22, 2024 /PRNewswire/ -- European Wax Center (NASDAQ: EWCZ), the largest and fastest-growing franchisor and operator of out-of-home waxing services in the United States, was recognized as one of the top 500 franchises in Entrepreneur's Franchise 500®, the world's first, best, and most comprehensive franchise ranking. For 45 years, the annual Entrepreneur Franchise 500® has been a highly sought-after honor in the franchise industry and recognized as an invaluable resource for potential fra ...

Financial Data and Key Metrics Changes - Q3 system-wide sales increased by 2.4% to $240.7 million, while total revenue rose by 1.2% to $55.7 million, reflecting a shift in the reporting calendar that moved some promotional days into Q2 [32][41] - Q3 adjusted EBITDA increased by 3.4% to $19.3 million, with an adjusted EBITDA margin of 34.6%, representing an 80 basis point improvement year-over-year [52][56] - Cash position improved by approximately $10 million to $64 million, with net leverage decreasing to 4.4x adjusted EBITDA compared to 5.3x in Q3 last year [34][36] Business Line Data and Key Metrics Changes - Wax Pass and routine guests, comprising over 75% of system-wide sales, showed strong brand loyalty, while episodic guests, making up about 25%, were more impacted by economic concerns [12][42] - The company opened 23 net new centers across 12 states in Q3, achieving over 80% of its expected new center openings for fiscal 2023 [25][80] - Same-store sales increased by 3.4%, driven by higher average tickets and consistent performance from ramping and mature centers [22][79] Market Data and Key Metrics Changes - The macroeconomic environment has negatively impacted the behavior of episodic guests, leading to a decrease in their frequency and spend [43][118] - The company is not observing significant regional differences in performance, although some variations exist based on new center openings [70] Company Strategy and Development Direction - The company is focused on two growth vectors: expanding its footprint through new center growth and driving in-center sales to enhance both system-wide and same-store sales [44][56] - A new media agency has been engaged to implement strategies aimed at increasing guest reservations and improving marketing effectiveness [24][28] - The company is testing additional hair removal modalities, such as laser hair removal, to attract new customers and increase share of wallet from existing guests [49] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while Wax Pass and routine guests remain committed, the macro environment has created challenges for episodic guests, impacting their frequency and spend [43][118] - The company updated its guidance for fiscal 2023 to reflect current transaction trends, expecting system-wide sales between $945 million and $955 million [35][36] - Despite challenges, management remains confident in long-term growth potential, citing strong franchisee confidence and a robust pipeline for new center openings [80] Other Important Information - The company released its inaugural ESG report, highlighting its commitment to sustainability and community support [30] - The adjusted net income for Q3 was $6.1 million, reflecting the impact of tax expenses [52] Q&A Session Summary Question: Can you provide more color on the pattern differential from episodic guests? - Management noted that less frequent guests began to pull back in late August and September, while Wax Pass guests remained stable [86] Question: What are the early impressions from the laser tests? - Initial results from the laser test in six centers are encouraging, suggesting potential to capture new demographics and enhance existing guest spending [61] Question: Are there any changes in new store ramp expectations due to macro pressures? - Management remains bullish on new unit development and does not foresee a slowdown in demand, emphasizing support for franchisees [64][65]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number: 001-40714 EUROPEAN WAX CENTER, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 86-3150064 (Sta ...

European Wax Center, Inc. (NASDAQ:EWCZ) Q4 2022 Earnings Conference Call March 9, 2023 8:00 AM ET Company Participants Bethany Johns - Director of Investor Relations David Berg - Chief Executive Officer David Willis - Chief Financial & Chief Operating Officer Conference Call Participants Randy Konik - Jefferies Jonathan Komp - Baird Dana Telsey - Telsey Group Kelly Crago - Citi Hannah Pittock - Morgan Stanley Korinne Wolfmeyer - Piper Sandler Operator Good morning, ladies and gentlemen and thank you for sta ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-40714 EUROPEAN WAX CENTER, INC. (Exact name of Registrant as specified in its Charter) | Delaware | 86-3150064 | | --- | --- | | (Sta ...

European Wax Center, Inc. (NASDAQ:EWCZ) Q3 2022 Earnings Conference Call November 3, 2022 5:00 PM ET Company Participants Amir Yeganehjoo - Senior Vice President-Financial Planning & Investor Relations David Berg - Chief Executive Officer David Willis - Chief Financial & Chief Operating Officer Conference Call Participants Jonathan Komp - R.W. Baird Dana Telsey - Telsey Group Lorraine Hutchinson - Bank of America John Heinbockel - Guggenheim Partners Kelly Crago - Citi Simeon Gutman - Morgan Stanley Scot Ci ...