Cautious Outlook on Mister Car Wash Amid Revenue Decline and Consumer Spending ChallengesWe are initiating coverage of Mister Car Wash, Inc. (MCW) with an Equal-Weight rating and $8 PT, based on 11x our NTM EBITDA estimate. MCW has seen a 7% decrease in revenue per store since 1Q22, driven by a pressured consumer base. The company rolled out new products (Titanium wash) and increased the pricing on its Platinum wash to counteract decreasing retail volumes. Management expects increased advertising spend to drive retail traffic in 2025. Membership conversion rates are ~10%, which should provide tailwinds to the company's UWC membership base. In 2025, we expect MCW will see 1.5% comparable store sales growth and 4.4% EBITDA growth, below street estimates of 3.3% and 8.9%, respectively. The company is efficiently navigating the current environment, but we need to see the return of retail customers before becoming more constructive on the stock.