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

Monro Muffler Brake (NASDAQ:MNRO) released 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 net margin of 0.19% and a return on equity of 2.33%. During the same quarter in the previous year, the company posted $0.22 earnings per share. The business’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 $3.12 on Wednesday, hitting $14.07. 1,616,725 shares of the company’s stock were exchanged, compared to its average volume of 931,124. The firm has a market cap of $439.80 million, a price-to-earnings ratio of 702.75, a P/E/G ratio of 3.89 and a beta of 1.01. The firm’s 50-day moving average price is $16.34 and its two-hundred day moving average price is $17.75. Monro Muffler Brake has a fifty-two week low of $12.26 and a fifty-two week high of $23.91. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.46 and a quick ratio of 0.16.

Monro Muffler Brake Dividend Announcement

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

Wall Street Analysts Forecast Growth

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

Institutional Trading of Monro Muffler Brake

A number of institutional investors have recently modified their holdings of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of 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 buying an additional 780 shares in the last quarter. Empowered Funds LLC raised its position in 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 acquiring an additional 7,464 shares in the last quarter. Royal Bank of Canada lifted its holdings in Monro Muffler Brake by 139.8% in the first quarter. Royal Bank of Canada now owns 27,904 shares of the auto parts company’s stock valued at $404,000 after acquiring an additional 16,268 shares during the period. Jane Street Group LLC lifted its holdings in Monro Muffler Brake by 85.2% in the first quarter. Jane Street Group LLC now owns 79,839 shares of the auto parts company’s stock valued at $1,155,000 after acquiring an additional 36,734 shares during the period. Finally, Jones Financial Companies Lllp acquired a new stake in Monro Muffler Brake in the first quarter valued at $559,000.

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.