Midas gives earnings report

Posted on August 31, 2010 by Franchise Gator Admin

Midas, the car care franchise, recently announced that it had made net earnings of $0.8 million during the second quarter, which ended on July 3, 2010. The earnings, which came in at $0.06 per diluted share, were affected by the expenses from the company's master licensee in Europe.

The franchise's retail stores in the United States reported positive results for the third quarter in a row, increasing by 1.7 percent. In the first quarter of the year, the company reported a 1.7 percent increase in sales, following other increases in the first quarter of 2010 and in the final quarter of 2009.

"We began local promotions of oil changes in early 2009, and shop traffic immediately increased - with double-digit increases for all of 2009 and 13 percent in the first quarter of this year," said Alan D. Feldman, Midas' chairman and chief executive officer. "Importantly, the significant decline in the average repair order that began when we first implemented this strategy has leveled off, as the average repair order has been stable throughout 2010."

According to its website, Midas has nearly 2,6000 locations worldwide and has a strong market share in many areas. For those who want to open their own franchise, Midas says it will give business owners "Intensive training, both in the classroom and in the shop" as well as a "field support staff for counsel and guidance."