Kurt Smith
About Kurt Smith
Kurt Smith is Chief Development Officer at European Wax Center, appointed effective July 22, 2025, reporting to CEO Chris Morris; he brings nearly 20 years of global franchise development and brand expansion experience from Pizza Hut/Yum! Brands, with prior roles at Bain & Company, Hewlett Packard, and Deloitte . His remit spans Business Development, Real Estate, Market Planning, and Franchise Recruitment; management highlighted his early impact on matching franchise partners to high‑potential development opportunities and rebuilding the new unit pipeline . Context at appointment: in Q2 2025, EWCZ posted $257.6M system-wide sales, +0.3% same-store sales, and $21.6M adjusted EBITDA amid a multi‑quarter turnaround focused on traffic and four-wall profitability .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Yum! Brands (Pizza Hut LATAM & Caribbean) | Vice President & GM | Not disclosed | Oversaw ~1,500 restaurants across 26 markets; delivered record system profits and double‑digit digital growth . |
| Yum! Brands (Pizza Hut LATAM & Iberia) | Chief Growth Officer | Not disclosed | Expanded brand into new markets; strengthened franchise partnerships; drove unit growth . |
| Yum! Brands (Pizza Hut Middle East, Turkey & Africa) | Chief Growth Officer | Not disclosed | Drove record unit growth and franchise engagement . |
| Pizza Hut US / South Pacific (Yum! Brands) | Leadership roles | Not disclosed | Led strategic expansion and franchise performance initiatives . |
| Bain & Company; Hewlett Packard; Deloitte | Prior roles | Not disclosed | Strategy and operating experience across consulting and technology . |
External Roles
- Not disclosed in company filings. No public company directorships or committee roles identified in EWCZ documents .
Fixed Compensation
| Element | 2025 | Notes |
|---|---|---|
| Base salary | Not disclosed | No Item 5.02 filing or offer letter for Kurt Smith found; COO/CFO terms were filed, but CDO terms were not in available 8‑Ks . |
| Target annual bonus % | Not disclosed | Company NEO plan uses corporate/individual metrics, but Kurt-specific targets not filed . |
| Actual bonus paid (latest FY) | Not applicable | Joined mid‑2025; no disclosure of 2025 payout for CDO . |
| Perquisites | Not disclosed | No compensatory arrangement filing for CDO . |
Performance Compensation
Company program design (2024 NEO framework; Kurt-specific terms not disclosed):
| Metric | Weight | 2024 Target attainment | Payout basis |
|---|---|---|---|
| Adjusted EBITDA | 30% | 92.3%–95.7% of target achieved | Corporate metrics 90% weight overall; individual 10% . |
| New center openings | 30% | Below threshold | Not met at minimum level . |
| Same-store sales | 15% | Below threshold | Not met at minimum level . |
| System-wide sales | 15% | 92.3%–95.7% of target achieved | Contributed to prorated payouts . |
Equity award structures actively used in 2025 (illustrative from other officers):
- RSUs: equal installments over 4 years for inducement grants (e.g., CFO 200,000 RSUs; COO 125,000 RSUs) .
- Options: 10-year term; many grants set at or above market (e.g., options exercisable on 4th anniversary; mix of at-market and $9/$12 strikes for inducement; 2024/2025 options often had exercise prices 20% above spot, implying a market condition) .
- 2021 Plan options: common practice is 3-year cliff vest; 2025 Inducement Plan options: 4-year cliff vest; both subject to continued employment .
Equity Ownership & Alignment
| Item | Status | Notes |
|---|---|---|
| Beneficial ownership (shares) | Not disclosed | Not listed in April 7, 2025 beneficial ownership table (pre‑hire) . No Form 3/4 located in available filings for CDO [Search: no Form 3/4 found]. |
| Ownership as % of SO | Not disclosed | Not in proxy; table predates his employment . |
| Vested vs unvested breakdown | Not disclosed | Inducement awards for other execs suggest 4‑year vesting, implying medium‑term retention pressure . |
| Options in‑the‑money value | Not disclosed | Company tendency to set option strikes 20% above spot increases performance bar and reduces near‑term monetization . |
| Pledging/hedging | Prohibited | Company policy forbids pledging, margining, and hedging by officers/directors . |
| Stock ownership guidelines | Not disclosed | No guideline disclosure identified in proxy . |
Employment Terms
| Term | Disclosure | Detail |
|---|---|---|
| Start date | Disclosed | Effective July 22, 2025; reports to CEO . |
| Employment agreement / offer letter | Not filed | No Item 5.02 compensatory arrangements for CDO found, unlike CFO/COO . |
| Severance plan eligibility | Not disclosed | Company maintains a Change in Control and Severance Plan; recent hires (CFO/COO) are eligible, but CDO eligibility not disclosed . |
| Non‑compete / non‑solicit | Not disclosed for CDO | NEO agreements include up to 2‑year non‑compete/non‑solicit; no specific CDO terms filed . |
| Clawback | Company policy | SEC/Nasdaq‑compliant restatement clawback; recent correction did not trigger recovery . |
Severance plan framework (company-level reference, not CDO‑specific):
- Non‑CIC termination without cause/good reason: salary continuation (e.g., 12 months for certain executives), pro‑rated annual bonus based on actual performance, and COBRA premium support during the salary period .
- CIC window termination: multiple of salary+target bonus (e.g., 2x for CAO), pro‑rated target bonus, COBRA up to 24 months, and full vesting (performance awards at target) .
Performance & Track Record
| Area | Evidence |
|---|---|
| Franchise growth expertise | Led Pizza Hut LATAM & Caribbean to record system profits; drove double-digit digital growth; prior Chief Growth Officer roles across multiple regions . |
| Early impact at EWCZ | CEO cited Kurt’s first weeks delivering “tremendous strides” in matching franchise partners with development opportunities; role central to resuming net unit growth by 2026 . |
| Company context | Q2 2025: $257.6M system-wide sales, +0.3% SSS, $21.6M adjusted EBITDA; transformational year focused on traffic and four-wall profit; more center closures than openings in 2025 with goal to return to positive net openings by end of 2026 . |
Compensation Structure Analysis
- Shift to inducement equity with out‑of‑the‑money option strikes: 2025 options often carry exercise prices ~20% above close, embedding a market condition (trinomial lattice valuation); this raises performance thresholds and curbs near‑term monetization, aligning with longer‑term value creation .
- Vesting design supports retention: 4‑year RSU vesting and 3–4 year option cliffs commonly used in 2024–2025 grants; for a new CDO, this structure typically reduces near‑term selling pressure and incentivizes multi‑year execution .
- Company annual bonus metrics emphasize adjusted EBITDA, unit development, SSS, and system sales—directly linked to CDO’s mandate (development and system sales); 2024 payout math shows sensitivity to misses on openings/SSS .
Risk Indicators & Red Flags
- Management turnover: CFO change (March 2025) and CAO resignation (effective Nov 7, 2025) during the turnaround; monitor continuity risk and span of control across development and operations .
- Capital structure and TRA: Securitization in place; cash flow supports but TRA obligations persist; watch for equity comp dilution and buyback activity vs growth investments .
- Policy mitigants: Prohibition on pledging/hedging reduces misalignment risk ; SEC/Nasdaq clawback adopted .
Investment Implications
- Alignment: Expect equity-heavy inducement with multi‑year vesting and OTM option strikes to tie Kurt’s upside to sustained system-wide sales and unit growth; this lowers near‑term insider selling pressure and aligns with turnaround horizons .
- Execution levers: With development responsibility and a reframed market-planning process, Kurt’s impact should be visible in 2026 net openings trajectory and franchisee engagement; monitor development disclosures, pipeline quality, and regional mix on calls .
- Watch items: Absence of filed CDO compensation terms limits visibility on severance/CIC economics; track for an Item 5.02 filing and Form 3/4 for ownership transparency. Also monitor leadership stability (COO ramp, CAO backfill) as potential execution risk .
Notes on disclosure gaps: We did not locate an 8‑K/offer letter or Form 3/4 for Kurt Smith in available filings; compensation specifics, equity grant sizes, and severance eligibility for the CDO are not disclosed. Findings above reflect company-wide policies and contemporaneous practices observed for other executives in 2025. Sources: EWCZ 2025 Proxy (DEF 14A) , Q3 2026 10‑Q , July 16, 2025 8‑K/press release on CDO appointment , and Q2 2025 earnings call .