Midas corporate recently announced results from its fiscal first quarter. You can read the details here or here. The long and the short of the results were net earnings of $1.3 million (compared to $2.2 million for the same quarter in ’07), but revenue increased 8.5 percent to nearly $45 million. The company noted that domestic retail sales were down 1.6 percent system-wide, but up nearly 8.0 percent for Canadian facilities.
The company also noted its recent acquisition of the franchisor for SpeeDee Oil Change & Tune-Up, promising to include results from SpeeDee operations in its second quarter financial postings. Of particular interest was the company’s announcement that it will co-brand Midas and SpeeDee services, with some SpeeDee shops offering Midas-branded services, and some Midas shops offering SpeeDee-branded oil change services. The company plans to test co-branded services later this year. If successful, it could signal a paradigm shift for the entire auto maintenance industry. Imagine a SpeeDee-branded quick oil change service at all 1,700 domestic Midas shops. And, this is pure conjecture of course, but imagine Goodyear offering “Jiffy Lube” oil changes at its facilities. The co-branding possibilities are endless…and certainly thought-provoking.