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Mister Car Wash COO steps down, transition plan set

EditorLina Guerrero
Published 06/28/2024, 04:47 PM
MCW
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TUCSON, AZ – Mister Car Wash , Inc. (NYSE:MCW) announced today that Mayra Chimienti, the company's Chief Operating Officer, has resigned from her role. Chimienti will continue to work with the company, providing transition services until December 31, 2024.

The Tucson-based car wash company disclosed the departure and subsequent arrangements in a recent SEC filing. Chimienti's decision to step down was formalized in a Transition and Severance Agreement, effective from June 22, 2024, through the end of the year. During this transition period, her annual salary and benefits will remain unchanged. She will also be eligible for an annual cash performance bonus for the fiscal year 2024 and will see her outstanding equity grants, which were set to vest in fiscal year 2025, accelerated to vest on December 31, 2024.

Following her departure, Chimienti will receive monthly severance payments totaling $29,166.67 before taxes and withholdings for the duration of 2025. Additionally, she will benefit from continued healthcare coverage for eighteen months under COBRA, starting January 1, 2025. The agreement includes standard clauses on confidentiality, non-disparagement, and a release of claims.

Mister Car Wash, recognized for its nationwide car wash and auto detailing services, did not immediately announce a successor for the COO position. The terms of the transition were detailed in the SEC filing, which also included the full text of the Transition Agreement as an exhibit.

In other recent news, Mister Car Wash Inc. has been receiving attention from both financial analysts and investors. JPMorgan recently upgraded the company's stock from Neutral to Overweight and set a new price target of $8.50. This change in outlook aligns Mister Car Wash closely with industry benchmarks, considering its valuation at 11 times enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) based on 2024 estimates.

Simultaneously, Mister Car Wash has reported a resilient performance in its first quarter ending March 31, 2024. The company saw a 6% increase in sales to $239 million and a 6% rise in adjusted EBITDA to $75 million. This steady growth is attributed to a strategic focus on membership upgrades and operational efficiencies.

The company also added 35,000 new members to the Unlimited Wash Club (UWC) in Q1, bringing the total to over 2.1 million subscribers. In addition, the company opened six new greenfield stores, expanding its total to 482 locations. These recent developments indicate a positive trajectory for Mister Car Wash, despite facing a challenging retail environment and increased competition.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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