GICS Sector : Consumer Cyclical
Monro, Inc.provides automotive undercar repair, and tire sales and services in the United States.It offers replacement tires and tire related services; routine maintenance services on passenger cars, light trucks, and vans; products and services for brakes; mufflers and exhaust systems; and steering, drive train, suspension, and wheel alignment.
Monro's financial performance in Q2 FY2026 was marked by a decline in sales, down 4.1% to $288.9 million, primarily due to the closure of 145 underperforming stores in the first quarter. However, the company reported a 1.1% increase in comparable store sales, which has enabled Monro to achieve three consecutive quarters of positive comps for the first time in a couple of years. Gross margin expanded by 40 basis points, driven by lower occupancy costs and material costs as a percentage of sales. The company's adjusted diluted earnings per share (EPS) came in at $0.21, beating estimates of $0.18.
Publication Date: Nov -24
The company continued to advance its acquisition marketing efforts through digital marketing tools, completed a field realignment to streamline field management, and introduced a new district manager toolkit to drive store-level sales. Monro also implemented new analytical tools for demand and inventory forecasting, as well as for pricing, and augmented its merchandising team with two new colleagues. As Peter Fitzsimmons noted, "We continue to work closely with our tire vendors to align on go-forward assortment opportunities to drive incremental sales for both parties."
Monro generated $30 million of cash from operations during the first half of FY2026 and had net bank debt of $50 million at the end of the second quarter. The company had availability under its credit facility of approximately $410 million and cash and equivalents of around $10 million. The accounts payable to inventory ratio stood at 186% at the end of Q2, up from 177% at the end of FY2025.
Monro expects to deliver year-over-year comparable store sales growth in FY2026, driven by its improvement plan and potential tariff-related price adjustments. The company's guidance implies a challenging environment, with total sales expected to decline by around $45 million due to store closures. With a P/E Ratio of -28.94 and a Dividend Yield of 6.09%, the market is pricing in significant challenges for the company. The EV/EBITDA ratio stands at 17.49, indicating a relatively high valuation for the company's earnings before interest, taxes, depreciation, and amortization.
Monro remains focused on executing its plan to improve operations, drive incremental profit, and enhance total shareholder returns in FY2026. Analysts estimate revenue growth to be -1.4% next year, indicating a challenging environment. The company's ability to manage price adjustments, improve operational efficiency, and maintain its dividend will be key to its future performance.
Monro, Inc. Provides Leadership Update
Dec -03
Big Insider Purchases by Carl Icahn, Mario Gabelli, and Others
Nov -12
Monro, Inc. Announces Approval of Limited-Duration Shareholder Rights Plan
Nov -10
Carl Icahn returns to a familiar sector — auto repair — as he builds a 15% stake in Monro
Nov -08
Auto repair chain Monro soars after Carl Icahn takes 15% stake to become largest shareholder
Nov -05
Monro, Inc. (MNRO) Q2 2026 Earnings Call Transcript
Oct -29
Monro Muffler Brake (MNRO) Beats Q2 Earnings Estimates
Oct -29
Monro, Inc. to Report Second Quarter Fiscal 2026 Earnings on October 29, 2025
Oct -15
Monro, Inc.'s tire segment growth of 4.83% is driven by increasing demand for vehicle maintenance and repair services, expansion of company-owned stores, and strategic acquisitions. Additionally, growing average ticket size, improved product offerings, and effective marketing strategies contribute to the segment's growth.
Monro, Inc.'s 4.83% maintenance growth is driven by increasing vehicle age, rising average repair cost, and growing demand for routine maintenance services. Additionally, the company's expanded service offerings, strategic acquisitions, and effective cost management contribute to its growth momentum.
Monro's brake segment growth of 4.83% is driven by increasing vehicle miles traveled, rising average vehicle age, and growing demand for brake repairs. Additionally, Monro's expanded service offerings, strategic acquisitions, and effective marketing strategies contribute to the growth. Furthermore, the company's focus on providing high-quality products and services, along with its strong brand reputation, also support the segment's growth.
Monro, Inc.'s 4.77% growth is driven by increasing demand for automotive repair services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on providing high-quality services, investing in technology, and building strong relationships with customers and suppliers contribute to its growth momentum.
Monro, Inc.'s 4.65% growth is driven by increasing demand for vehicle maintenance and repair services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on providing a wide range of services, including tires, brakes, and oil changes, has contributed to its growth. Furthermore, Monro's strong brand recognition and customer loyalty have also played a significant role in driving sales.
Monro, Inc.'s 4.77% growth is driven by increasing demand for automotive repair services, expansion of company-owned stores, and strategic acquisitions. Additionally, the company's focus on providing a wide range of services, including routine maintenance and complex repairs, has contributed to its growth. Furthermore, Monro's efforts to enhance the customer experience through digital initiatives and loyalty programs have also supported its growth momentum.
Monro, Inc. offers a wide range of tires from top brands, including Goodyear, Michelin, and BFGoodrich, catering to various vehicle types and driving conditions.
Monro, Inc. provides a variety of batteries from trusted brands, including Interstate Batteries and AC Delco, designed for different vehicle types and applications.
Monro, Inc. offers brake pads, rotors, and other brake components from reputable brands, ensuring safe and reliable braking performance.
Monro, Inc. provides alignment and suspension services, including wheel alignments, strut replacements, and shock absorber installations.
Monro, Inc. offers oil changes, fluid checks, and top-offs, using high-quality oils and fluids from trusted brands.
Monro, Inc. provides vehicle inspections and diagnostic services, identifying potential issues and recommending necessary repairs.
The threat of substitutes for Monro, Inc. is medium because while there are some alternatives to tire and automotive services, they are not highly attractive to customers.
The bargaining power of customers for Monro, Inc. is low because individual customers have limited negotiating power.
The bargaining power of suppliers for Monro, Inc. is medium because while suppliers have some negotiating power, Monro's large scale of operations gives it some bargaining power.
The threat of new entrants for Monro, Inc. is low because of the high barriers to entry in the tire and automotive services industry.
The intensity of rivalry for Monro, Inc. is high because of the competitive nature of the tire and automotive services industry.
| Value | |
|---|---|
| Debt Weight | 21.48% |
| Debt Cost | 5.18% |
| Equity Weight | 78.52% |
| Equity Cost | 9.64% |
| WACC | 8.68% |
| Leverage | 27.36% |
Value: 5.8
Growth: 3.7
Quality: 5.7
Yield: 8.0
Momentum: 7.0
Volatility: 8.0
1-Year Total Return ->
Value: 5.4
Growth: 3.3
Quality: 3.8
Yield: 6.0
Momentum: 8.5
Volatility: 6.7
1-Year Total Return ->
Value: 7.9
Growth: 6.7
Quality: 6.0
Yield: 0.0
Momentum: 9.5
Volatility: 3.3
1-Year Total Return ->
Value: 4.7
Growth: 3.3
Quality: 2.4
Yield: 5.0
Momentum: 9.0
Volatility: 4.7
1-Year Total Return ->
Value: 7.3
Growth: 2.6
Quality: 2.8
Yield: 8.0
Momentum: 1.0
Volatility: 2.7
1-Year Total Return ->
Value: 6.8
Growth: 5.9
Quality: 2.6
Yield: 0.0
Momentum: 6.5
Volatility: 2.0
1-Year Total Return ->