For the fiscal first quarter ended Dec. 31, 2019, the Quick Lubes segment of Valvoline Inc. generated $218 million in sales — an increase of 15.3% over the same period a year ago. According to the company, volume growth resulted from an increase in transactions, primarily attributable to the segment’s marketing investments in customer acquisition and retention programs, as well as the addition of 106 net new shops.

Premium mix improvements and increases in non-oil-change services combined to improve average ticket and increase sales, according to management; however, pricing actions implemented in the prior-year period — which did not recur in the current year — moderated sales growth.

Combined same-shop sales grew 8.3% on top of 9.8% growth a year ago for a two-year stack of +18.1%.

Company-owned same-shop sales increased 6.2% on top of 9.9% growth a year ago (two-year stack of +16.1%), while franchised same-shop sales rose 9.8% on top of 9.8% growth a year ago (two-year stack of 19.6%).

Quick Lubes gross profit (as a percent of sales) declined from 38.4% to 37.3% on a year-over-year basis.

The costs associated with ramping up new stores, a temporary increase in labor costs and an increased allocation of shared corporate costs resulted in flat operating income of $38 million. Segment EBITDA increased 4% to $48 million.