Mr. Lube, a leading quick lube service business with locations across Canada, increased first quarter revenue by 20% and same-store sales by 18%, parent company Diversified Royalty Corp. reported.
The Mr. Lube business posted sales revenue of $5.8 million for quarter ended March 31, compared to $4.8 million in the same period last year. The quick lube business generated same-store sales growth of 18%.
“The increase was primarily due to continued growth in Mr. Lubes’ oil, maintenance and tire offerings, combed with higher customer traffic,” Vancouver, British Columbia-based Diversified Royalty said in its earnings release.
The first quarter results continued a positive trend from last year. In the fourth quarter of 2022, Mr. Lube’s sales revenue was up 17% at $6.7 million. Full-year sales revenue for the business was up 23% at $23.9 million. In the fourth quarter, the quick lube business generated same store sales growth of 17% and for for-full year 2022 18%.
The company previously attributed the full-year improvement in same store sales to price increases and post-pandemic resumption of consumer activities and return to traditional oil change intervals.
Mr. Lube is Canada’s largest quick lube brand and has more than 170 locations. Established in 1976, Mr. Lube was acquired by Diversified Royalty in August 2015.