Core Viewpoint - Julie & Holleman LLP is investigating the proposed $330 million acquisition of European Wax Center, Inc. by General Atlantic, highlighting concerns over conflicts of interest and the perceived undervaluation of the deal at $5.80 per share [1][5]. Group 1: Company Overview - European Wax Center is a leading franchisor and operator of waxing services, making significant progress on its business priorities throughout 2025, which has established a stronger foundation for future growth [3]. - The company's Chairman and CEO, Chris Morris, expressed "tremendous optimism" regarding the company's prospects in November 2025 [3]. Group 2: Acquisition Details - General Atlantic, which already owns 40% of European Wax Center, announced on February 10, 2026, that it would acquire the remaining shares for $5.80 per share, with the deal expected to close in mid-2026 [4]. - The acquisition has raised concerns from Julie & Holleman regarding the fairness of the deal, particularly as key insiders will remain with the company while public shareholders may be receiving a price below the company's true value [5].

Core Viewpoint - Julie & Holleman LLP is investigating the proposed $330 million acquisition of European Wax Center, Inc. by General Atlantic, citing concerns over conflicts of interest and the perceived undervaluation of the deal at $5.80 per share [1][5]. Company Overview - European Wax Center is the leading franchisor and operator of out-of-home waxing services in the United States [3]. - The company made significant progress on its key business priorities throughout 2025, establishing a stronger foundation for future growth [3]. - Chairman and CEO Chris Morris expressed "tremendous optimism" regarding the company's prospects in November 2025 [3]. Acquisition Details - General Atlantic, which already owns 40% of European Wax Center, has decided to acquire the remaining shares for $5.80 per share, with the deal expected to close in mid-2026 [4]. - The acquisition price has raised concerns about its fairness, as insiders will remain with the company while public shareholders may be cashed out at a price below the company's true value [5].

Core Insights - The perception of tipping culture in America is that it is excessive, but this is only partially true, especially for small businesses [1] - Tipping fatigue exists, yet Americans are still tipping, becoming more selective about when and how much to tip [2] Tipping Trends - The average tip percentage across various categories is 15.46%, with restaurants, fast food, and transportation averaging between 14% and 16%, while personal services like barbering and beauty services average 17% and miscellaneous services average 18.3% [3] - The average dollar amount for tips has increased to $12.44, with specialty services like automotive repair often seeing tips over $20, indicating that high-quality experiences are rewarded with higher gratuity [4] Customer Experience - Small and micro-sized businesses need to be cautious about how they prompt for tips, as excessive prompts can undermine the legitimacy of tipping in customers' minds [5] - Tipping trends vary by state, with South Carolina leading at an average tip rate of 20.71%, followed by Wisconsin at 19.15% and Connecticut at 18.43%. However, Connecticut has the highest average dollar amount for tips at $13.06 [6]

Financial Data and Key Metrics Changes - For the first quarter of fiscal 2026, consolidated same-store sales increased by 0.9%, driven by pricing actions and improved execution at the salon level [4] - Adjusted EBITDA for the first fiscal quarter was $8 million, up from $7.6 million a year ago, reflecting a $400,000 improvement [4][14] - Total first quarter revenue was $59 million, an increase of 28% or $12.9 million compared to the prior year [11] - GAAP operating income increased to $5.9 million, up from $2.1 million in the year-ago quarter [13] - The company generated $2.3 million in positive operating cash flow, a $3.6 million improvement versus last year's first quarter [4][16] Business Line Data and Key Metrics Changes - Same-store sales for Supercuts were up 2.5% for the first fiscal quarter, with loyalty program participation growing from 36% to 40% [4] - Adjusted EBITDA for the franchise segment was $6.4 million, a decrease of $1.6 million compared to the prior year quarter [15] - Adjusted EBITDA for the company-owned salon segment improved by $1.9 million year-over-year to $1.6 million for the quarter [15] Market Data and Key Metrics Changes - The company experienced a net decrease of 757 franchise locations compared to the previous year, with approximately 300 related to the Align salons that converted from franchise to company-owned [12] - The performance gap between closed stores and top-performing units was approximately $350,000, indicating strong potential within the system [12] Company Strategy and Development Direction - The company is focused on the holistic transformation of the Supercuts brand and optimizing sales and profitability in its company-owned salon portfolio [3] - Key initiatives include enhancing operational performance, reinforcing brand leadership, and driving technology and digital acceleration across the business [8] - The company is piloting brand-specific initiatives to strengthen performance across its portfolio [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the progress made in improving profitability and generating positive cash flow [9] - The company anticipates a meaningful increase in unrestricted cash generated from core operations compared to fiscal year 2025 [17] - Management is encouraged by the signals that their actions are taking hold, indicating a positive trajectory for the company [10] Other Important Information - The company expects G&A expenses to be in the range of $40 million to $43 million for the year, including G&A associated with the Align transaction [37] - As of September 30, 2025, the company had $25.5 million of available liquidity and outstanding debt of $124.8 million [19][20] Q&A Session Summary Question: Can you provide more details about pricing actions and their impact on traffic? - Management indicated that franchisees have begun to take further pricing actions based on competitive pricing surveys, with no significant changes in traffic trends observed [23][24] Question: Can you talk about traffic trends at Supercuts and Smart Style? - Management noted continued improvements in traffic at Supercuts, while acknowledging opportunities for improvement at Smart Style [26] Question: Regarding store closures, should we expect a reduction in closures this year? - Management confirmed that closures are expected to be reduced by half compared to previous years, with no guidance on specific numbers [31] Question: Can you provide insight into G&A for this year? - Management expects G&A to be in the range of $40 million to $43 million, including G&A associated with the Align transaction [37] Question: What is the status of the CEO search? - Management indicated that a decision on the CEO search is expected in the coming months, with the interim CEO actively engaged in the process [42]

Financial Data and Key Metrics Changes - For the First Quarter of fiscal 2026, consolidated same-store sales increased by 0.9%, driven by pricing actions and improved execution at the salon level [4] - Adjusted EBITDA for the first fiscal quarter was $8 million, up from $7.6 million a year ago, reflecting a $400,000 improvement [4][14] - Total First Quarter Revenue was $59 million, an increase of 28% or $12.9 million compared to the prior year [11] - GAAP Operating Income increased to $5.9 million, up from $2.1 million in the year-ago quarter [13] - Cash From Operations was $2.3 million, a $3.6 million improvement compared to a use of cash by operations of $1.3 million in the prior year [16][17] Business Line Data and Key Metrics Changes - Same-store sales for Supercuts were up 2.5% for the first fiscal quarter, with loyalty program participation growing from 36% to 40% [4][5] - Adjusted EBITDA for the Company-Owned Salon Segment improved by $1.9 million year-over-year to $1.6 million for the quarter [15] - Adjusted EBITDA for the franchise segment decreased by $1.6 million to $6.4 million, primarily due to lower royalties and fees [15] Market Data and Key Metrics Changes - The company experienced a net decrease of 757 franchise locations compared to the previous year, with approximately 300 related to the Align salons that converted from franchise to company-owned [12] - The performance gap between closed stores and top-performing units was approximately $350,000, indicating strong potential within the system [12] Company Strategy and Development Direction - The company is focused on the holistic transformation of the Supercuts brand and optimizing sales and profitability in its company-owned salon portfolio [3] - Key initiatives include enhancing operational performance, reinforcing brand leadership, and driving technology and digital acceleration across the business [8] - The company is piloting brand-specific initiatives to strengthen performance across its portfolio [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the progress made in improving profitability and generating positive cash flow [9] - The company anticipates a meaningful increase in unrestricted cash generated from core operations compared to fiscal year 2025 [17] - Management is encouraged by the signals that their actions are taking hold, indicating a positive trajectory for the company [10] Other Important Information - The company has received questions regarding the potential to refinance existing debt, indicating that current economics do not support such a move in the near term [21] - The company expects G&A expenses to be in the range of $40 million-$43 million for the year, including G&A associated with the Align transaction [37] Q&A Session Summary Question: Can you provide more details about pricing actions and their impact on traffic? - Management indicated that franchisees have begun to take further pricing actions based on a competitive pricing survey, with no significant changes in traffic trends observed [23][24] Question: Can you talk about traffic trends at Supercuts and Smart Style? - Management noted improvements in traffic trends at Supercuts, while acknowledging opportunities for improvement at Smart Style [26] Question: Regarding store closures, should we expect a reduction in closures this year? - Management confirmed that closures have reduced by half compared to the previous year, but did not provide specific guidance on future closures [31] Question: Can you provide insight into G&A for this year? - Management expects G&A to be in the range of $40 million-$43 million, including G&A associated with the Align transaction [37] Question: What is the status of the CEO search? - Management anticipates a decision on the CEO search in the coming months, with the interim CEO actively engaged in the process [42]

Core Insights - European Wax Center, Inc. (EWCZ) is expected to report quarterly earnings of $0.14 per share, reflecting a year-over-year increase of 16.7% [1] - Revenue projections for the upcoming quarter are estimated at $52.79 million, which represents a decline of 4.8% compared to the same quarter last year [1] - There have been no revisions in the consensus EPS estimate over the last 30 days, indicating stability in analysts' forecasts [1] Revenue Estimates - The consensus estimate for 'Revenue- Marketing fees' is projected at $7.58 million, indicating a slight decrease of 0.3% year over year [3] - Analysts estimate 'Revenue- Royalty fees' to be $13.15 million, reflecting a decrease of 2% from the previous year [4] - 'Revenue- Product sales' is projected to reach $29.26 million, which is a decline of 7.7% from the year-ago quarter [4] Operational Metrics - The consensus among analysts is that the 'Ending center count' will be 1,044, down from 1,064 reported in the same quarter last year [4] - Shares of European Wax Center have increased by 8.2% over the past month, contrasting with a slight decline of 0.2% in the Zacks S&P 500 composite [5] - EWCZ holds a Zacks Rank of 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [5]

Core Insights - The article discusses the impact of technological change on the workforce, particularly focusing on the Labor Economy, which comprises 60 million U.S. hourly workers who contribute significantly to consumer spending and the economy [8][12][18]. Group 1: Historical Context and Workforce Transition - Historical examples illustrate how different groups adapt to technological changes, with blacksmiths transitioning to auto mechanics due to transferable skills, while lamplighters struggled to find new roles after the advent of electric lights [4][5][6]. - The Labor Economy is at a similar inflection point today, facing potential displacement due to advancements in artificial intelligence and technology [7][29]. Group 2: Characteristics of the Labor Economy - The Labor Economy drives $1.7 trillion in annual consumer spending in the U.S., with workers typically earning between $30,000 and $40,000 per year [8][18]. - Approximately 36% of U.S. workers participate in the Labor Economy, with high participation rates in transportation, hospitality, retail, and personal services [17]. Group 3: Financial Fragility and Spending Patterns - Labor Economy workers often experience financial fragility, with limited savings and difficulty covering emergencies, which impacts their spending and, consequently, the broader economy [20][21]. - Their spending patterns are closely tied to their work hours and pay schedules, making timely paychecks crucial for economic stability [22]. Group 4: Innovation and Technology in the Labor Economy - Digital platforms have emerged as essential tools for Labor Economy workers, providing flexible income opportunities and access to on-demand pay, which enhances financial control [24][26]. - The article emphasizes the need for upward innovation, where technology creates pathways to higher-skill jobs, requiring training and support for workers [14][30]. Group 5: Future of Work and Structural Changes - The future of the Labor Economy will depend on how technology, innovation, and new staffing models interact to create stability and opportunities for workers [27][31]. - There is a call for creating infrastructure that connects technological advancements with workforce inclusion, ensuring that workers can adapt and thrive in a changing economy [40][42].

Regulatory Change - South Korea legalizes tattooing by non-medical professionals [1]

Core Insights - Employers are more inclined to train workers on artificial intelligence (AI) rather than replace them, according to an analysis by the Federal Reserve Bank of New York [1][4] - A survey indicated an increase in AI usage among businesses, with minimal layoffs reported, as companies focus on retraining employees [2][3] AI Adoption and Workforce Impact - The survey revealed that while some companies reduced hiring due to AI, others increased hiring for positions requiring AI skills [2] - Predictions of AI-related layoffs were made by a few employers, but past survey data suggests that such expectations may not materialize [3] - AI usage varies significantly by industry, with over 50% of firms in information, finance, and professional services utilizing AI, while less than half in sectors like wholesale, leisure, and retail reported similar usage [3] Job Market Implications - The Federal Reserve researchers noted that the adjustments in workforce due to AI are unlikely to have major immediate effects on the job market, as the findings pertain only to 25-40% of firms using AI [4] - The overall impact on employment is expected to be modest, with both positive and negative effects possible [4]

Group 1 - European Wax Center, Inc. (EWCZ) is expected to report quarterly earnings of $0.19 per share, a 26.7% increase year-over-year, while revenues are forecasted at $56.93 million, reflecting a 4.9% decrease compared to the same period last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have collectively reassessed their initial estimates during this period [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [3] Group 2 - Analysts project 'Revenue- Marketing fees' to reach $7.79 million, a decrease of 4.3% from the prior-year quarter [5] - 'Revenue- Royalty fees' is estimated at $14.02 million, suggesting a 3.1% year-over-year decline [5] - 'Revenue- Product sales' is expected to be $31.29 million, indicating a 7.8% decrease year-over-year [5] - 'Revenue- Other revenue' is projected at $3.22 million, reflecting a 3.7% decline from the previous year [6] - The consensus for 'Ending center count' is 1,054, down from 1,059 in the same quarter last year [6] Group 3 - Over the past month, European Wax Center shares have declined by 23.5%, while the Zacks S&P 500 composite has increased by 1.9% [7] - EWCZ holds a Zacks Rank 3 (Hold), suggesting that its performance is likely to align with the overall market in the near future [7]