Canadian quick lube service business Mr. Lube + Tires reported an 18% increase in sales revenue and slightly higher same-store sales growth for the third quarter, parent company Diversified Royal Corp. reported.
Sales revenue for the Mr. Lube + Tires business increased from $6.2 million in the quarter ended Sept. 30, 2022 to $7.3 million in the same period this year. One of seven royalty partners for Diversified Royalty, Mr. Lube + Tires accounted for 49% of its total sales revenue in the third quarter.
The third quarter represented the fourth straight quarter of year-on-year sales revenue growth for the quick lube business, dating back to last year’s fourth quarter, including a 23% increase to $7.6 million in the second quarter and a 20% increase to $5.8 million in the first quarter and a 17% rise to $6.7 million in last year’s final quarter.
The quick lube business generated same store sales growth of 16% for its locations in the royalty pool for the quarter, compared to 15%. Same store-sales growth in the quarter was attributed primarily due to the sustained growth across all of the Mr. Lube + Tire’s offerings, including oil change services and maintenance service offerings.
Mr. Lube + Tires is Canada’s largest quick lube brand and has more than 170 locations.
Started in 1976, the business was acquired by Diversified Royalty in August 2015. Diversified Royalty Corp. acquires top-line royalties from multi-location businesses and franchisors in North America.