Monro Muffler Brake (NASDAQ:MNRO) Releases Earnings Results

Key Points

• Monro reported a weak quarter: adjusted EPS was a $0.09 loss, missing the $0.04 consensus estimate, while revenue fell 4.6% year over year to $287.1 million and comparable-store sales declined 1.7%.
• Management maintained its fiscal 2027 outlook for comparable-store sales growth and stable gross margins, citing market-share gains in tires, stronger battery sales, and operational improvement initiatives despite higher marketing costs.
• Financial and market pressures remain significant: operating cash flow was negative $30 million, debt stood at $99 million, the strategic review is ongoing, and shares fell 18.2% to $14.07 amid predominantly negative analyst ratings.

Monro Muffler Brake (NASDAQ:MNRO - Get Free Report) posted its quarterly earnings results on Wednesday. The auto parts company reported ($0.09) EPS for the quarter, missing the consensus estimate of $0.04 by ($0.13), FiscalAI reports. Monro Muffler Brake had a return on equity of 2.33% and a net margin of 0.19%.The company's revenue was down 4.6% compared to the same quarter last year. During the same period in the previous year, the business posted $0.22 EPS.

Here are the key takeaways from Monro Muffler Brake's conference call:

• First-quarter performance was weak: comparable-store sales fell 1.7% and total sales declined 4.6% to $287.1 million, while adjusted diluted EPS was a loss of $0.09 versus earnings of $0.22 a year ago. High gas, food, and healthcare costs pressured traffic and led customers to defer higher-ticket tire and brake purchases.
• Tire unit volume was flat despite industry weakness, which management believes reflects market-share gains supported by a revised assortment, stronger digital and CRM marketing, and expanded lower-priced tire offerings. Battery comparable sales rose 8%, while average repair orders benefited from improvements in inspections and higher-margin services.
• Management reported progress in its operational improvement initiatives, including the ConfiDrive inspection process and a district-manager toolkit expanded from roughly 150 to 340 underperforming stores. The company expects these efforts to improve store profitability and support positive comparable-store sales for fiscal 2027.
• Monro maintained its expectation for full-year fiscal 2027 comparable-store sales growth and gross margin roughly in line with fiscal 2026, but expects higher SG&A from continued marketing investment. Capital expenditures are projected at $25 million to $35 million.
• Cash used in operating activities was $30 million, and the accounts-payable-to-inventory ratio declined to 185%; net bank debt stood at $99 million. Although management said the working-capital outflow was largely timing-related and expects to fund the dividend, dividend decisions remain subject to quarterly reviews of cash flow, performance, and debt covenants.
• The board’s strategic review remains active and includes potential asset sales, refinancing, acquisitions, operational improvements, or a sale of the company, but there is no deadline or assurance that a transaction will result.

Monro Muffler Brake Stock Down 18.2%

Monro Muffler Brake stock traded down $3.12 during trading on Wednesday, reaching $14.07. The stock had a trading volume of 1,616,725 shares, compared to its average volume of 931,124. The company has a quick ratio of 0.16, a current ratio of 0.46 and a debt-to-equity ratio of 0.43. Monro Muffler Brake has a 52-week low of $12.26 and a 52-week high of $23.91. The stock has a market cap of $439.80 million, a PE ratio of 702.75, a P/E/G ratio of 3.89 and a beta of 1.01. The business has a 50 day moving average price of $16.34 and a 200 day moving average price of $17.75.

Monro Muffler Brake Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were paid a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 8.0%. The ex-dividend date was Tuesday, June 2nd. Monro Muffler Brake's dividend payout ratio is presently 5,600.00%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in MNRO. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Monro Muffler Brake by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,775 shares of the auto parts company's stock valued at $257,000 after acquiring an additional 780 shares during the last quarter. Royal Bank of Canada grew its holdings in shares of Monro Muffler Brake by 139.8% during the first quarter. Royal Bank of Canada now owns 27,904 shares of the auto parts company's stock worth $404,000 after purchasing an additional 16,268 shares during the last quarter. Jones Financial Companies Lllp acquired a new stake in shares of Monro Muffler Brake during the first quarter worth about $559,000. Jane Street Group LLC increased its position in shares of Monro Muffler Brake by 85.2% during the first quarter. Jane Street Group LLC now owns 79,839 shares of the auto parts company's stock worth $1,155,000 after purchasing an additional 36,734 shares in the last quarter. Finally, Empowered Funds LLC lifted its holdings in shares of Monro Muffler Brake by 5.6% in the 1st quarter. Empowered Funds LLC now owns 141,635 shares of the auto parts company's stock valued at $2,049,000 after purchasing an additional 7,464 shares during the last quarter.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on MNRO shares. Weiss Ratings upgraded shares of Monro Muffler Brake from a "sell (d)" rating to a "sell (d+)" rating in a research report on Thursday, May 28th. Wells Fargo & Company dropped their price target on shares of Monro Muffler Brake from $20.00 to $16.00 and set an "equal weight" rating for the company in a research note on Thursday, June 11th. Wall Street Zen downgraded shares of Monro Muffler Brake from a "hold" rating to a "sell" rating in a report on Saturday, May 30th. Finally, Zacks Research lowered shares of Monro Muffler Brake from a "hold" rating to a "strong sell" rating in a research report on Monday, June 29th. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Monro Muffler Brake has a consensus rating of "Reduce" and a consensus target price of $28.00.

Monro Muffler Brake Company Profile

Monro Muffler Brake NASDAQ: MNRO is a leading provider of undercar repair and maintenance services for light vehicles in the United States. The company's core offerings include brake systems, exhaust systems, steering and suspension repairs, tire sales and service, oil and lube changes, wheel alignment, multi-point inspections, and state vehicle inspections. Monro serves both retail customers and fleet accounts, focusing on fast, reliable service and preventive maintenance to help extend vehicle life and safety.

Headquartered in Rochester, New York, Monro was originally founded in 1957 and has grown through a combination of organic expansion and strategic acquisitions.

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