Mister Car Wash Inc., is a good business for three reasons: expansive network, innovative subscription model, and commitment to quality service. The company’s profitability, recent expansions, and depressed stock price make it an attractive buy at current levels.

Mister Car Wash Inc. is North America’s leading car wash chain. Founded in 1969, the corporation provides express exterior car cleaning services, with some locations also offering interior cleaning. It has over 500 locations spread over 21 states.

The company provides wash services, interior detailing, and a monthly charge plan titled Unlimited Wash Club (UWC) wherein customers can wash their cars unlimited times within that month for a fixed fee. This also includes the exclusive use of HotShine Carnauba Wax and T3 Conditioner as value-added services.

The giant targets individuals who are in need of fast car cleaning services. The end market consists of consumers looking for quick and efficient car wash, particularly in urban areas where convenience is paramount.

The company, being on an expansion spree, has been able to consistently grow its revenue. Much of the growth can be attributed to the success of Unlimited Wash Club. In just two years, the subscriber base soared from 1.66 million to 2.08 million, driving the share of revenue from these subscribers up from 64% to 71%. For investors, this increase demonstrates a stable, persistent revenue implying long-term stability, especially considering the store base grew from 462 to 501 locations by Q3 2024.

Revenues are expected to increase by 6.9% next year. The ability to continue growing even in tough economic conditions makes the stock worth buying at these depressed prices.

Mister Car Wash does not rank on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held MCW at the end of the third quarter which was 14 in the previous quarter. While we acknowledge the potential of MCW as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as MCW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.