Monro Muffler Brake (NASDAQ:MNRO) Releases Earnings Results, Misses Estimates By $0.13 EPS

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

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 Performance

NASDAQ:MNRO traded down $3.09 during midday trading on Wednesday, hitting $14.11. The company’s stock had a trading volume of 1,718,863 shares, compared to its average volume of 931,899. Monro Muffler Brake has a fifty-two week low of $12.26 and a fifty-two week high of $23.91. The firm’s 50 day moving average is $16.34 and its 200-day moving average is $17.75. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.46 and a quick ratio of 0.16. The firm has a market cap of $440.86 million, a P/E ratio of 704.00, a P/E/G ratio of 3.89 and a beta of 1.01.

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 given a $0.28 dividend. The ex-dividend date was Tuesday, June 2nd. This represents a $1.12 dividend on an annualized basis and a yield of 7.9%. Monro Muffler Brake’s dividend payout ratio is currently 5,600.00%.

Institutional Trading of Monro Muffler Brake

Several large investors have recently made changes to their positions in MNRO. Royal Bank of Canada raised 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. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Monro Muffler Brake by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,775 shares of the auto parts company’s stock valued at $257,000 after buying an additional 780 shares during the last quarter. Jones Financial Companies Lllp acquired a new position in shares of Monro Muffler Brake in the 1st quarter valued at about $559,000. Goldman Sachs Group Inc. lifted its holdings in shares of Monro Muffler Brake by 11.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 688,075 shares of the auto parts company’s stock valued at $9,956,000 after buying an additional 68,862 shares during the period. Finally, Empowered Funds LLC boosted its stake in shares of Monro Muffler Brake by 5.6% in the first quarter. Empowered Funds LLC now owns 141,635 shares of the auto parts company’s stock worth $2,049,000 after buying an additional 7,464 shares during the last quarter.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the company. Wall Street Zen cut Monro Muffler Brake from a “hold” rating to a “sell” rating in a research report on Saturday, May 30th. Zacks Research cut shares of Monro Muffler Brake from a “hold” rating to a “strong sell” rating in a report on Monday, June 29th. Wells Fargo & Company lowered their price objective 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. Finally, Weiss Ratings raised shares of Monro Muffler Brake from a “sell (d)” rating to a “sell (d+)” rating in a report on Thursday, May 28th. One analyst has rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company presently 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.