Monro Inc【MNRO】株式ニュース

Monro, Inc. Announces Fourth Quarter and Fiscal 2026 Financial ResultsMay 27, 2026 7:30 AM
Business Wire Fourth Quarter Gross Margin Expanded 90 Basis Points Year-over-Year Approved First Quarter Fiscal 2027 Cash Dividend of $.28 per Share Monro, Inc. (Nasdaq: MNRO), a leading provider of automotive repair and tire services, today announced financial results for its fourth quarter and fiscal year ended March 28, 2026. Fourth Quarter Results Sales for the fourth quarter of the fiscal year ended March 28, 2026 (“fiscal 2026”) decreased 7.2% to $273.8 million, as compared to sales of $295.0 million for the fourth quarter of the fiscal year ended March 29, 2025 (“fiscal 2025”). This was primarily driven by a reduction in sales from the closure of 145 underperforming stores in the first quarter of fiscal 2026, as well as a 2.4% decrease in comparable store sales from continuing store locations. Comparable store sales, adjusted for days, increased 2.8%1 in the prior year period. Comparable store sales, unadjusted for days, decreased 3.6% in the prior year period. Comparable store sales increased 1% for front end/shocks. Comparable store sales decreased 1% for brakes, 2% for maintenance services and tires, 3% for batteries, and 4% for alignments compared to the prior year period. Please refer to the “Comparable Store Sales” section below for a discussion of how the Company defines comparable store sales. Gross margin increased 90 basis points compared to the prior year period, primarily from lower technician labor costs as a percentage of sales, which was partially offset by higher material costs as well as higher occupancy costs as a percentage of sales. Total operating expenses for the fourth quarter of fiscal 2026 were $98.1 million, or 35.8% of sales, as compared to $121.1 million, or 41.1% of sales in the prior year period. The decrease was primarily driven by $22.5 million of higher store impairment costs in the prior year period related to certain owned and leased assets, $6.9 million of lower costs from the closure of 145 underperforming stores in the first quarter of fiscal 2026, and a decrease of $1.8 million in management restructuring/transition costs. These were partially offset by $6.9 million of increased marketing costs to support the Company’s topline sales and $2.7 million of costs incurred in connection with consultants related to the Company’s operational improvement plan. Operating loss for the fourth quarter of fiscal 2026 was $5.2 million, or -1.9% of sales, as compared to operating loss of $23.8 million, or -8.1% of sales in the prior year period. Adjusted operating loss, a non-GAAP measure, for the fourth quarter of fiscal 2026 was $2.6 million, or -0.9% of sales, as compared to adjusted operating income of $1.4 million, or 0.5% of sales in the prior year period. Please refer to the reconciliation of adjusted operating (loss) income in the table below for details regarding excluded items in the fourth quarters of fiscal 2026 and 2025. Please refer to the “Non-GAAP Financial Measures” section below for a discussion of this non-GAAP measure. Interest expense was $4.1 million for the fourth quarter of fiscal 2026, as compared to $4.4 million for the fourth quarter of fiscal 2025, principally due to a decrease in weighted average debt. Income tax benefit in the fourth quarter of fiscal 2026 was $2.6 million, or an effective tax rate of 28.6%, compared to an income tax benefit of $6.8 million, or an effective tax rate of 24.3% in the prior year period. The year-over-year difference in effective tax rate is primarily related to a decrease in unrecognized tax benefits as well as the impact from other adjustments, none of which are significant, on the change in pre-tax loss. Net loss for the fourth quarter of fiscal 2026 was $6.6 million, as compared to a net loss of $21.3 million in the same period of the prior year. Diluted loss per share for the fourth quarter of fiscal 2026 was $.23. This compares to diluted loss per share of $.72 in the fourth quarter of fiscal 2025. Adjusted diluted loss per share, a non-GAAP measure, for the fourth quarter of fiscal 2026 was $.16. This compares to adjusted diluted loss per share of $.09 in the fourth quarter of fiscal 2025. Please refer to the reconciliation of adjusted net loss and adjusted diluted loss per share in the tables below for details regarding excluded items in the fourth quarters of fiscal 2026 and 2025. Please refer to the “Non-GAAP Financial Measures” section below for a discussion of these non-GAAP measures. Monro ended the fourth quarter with 1,115 company-operated stores and 47 franchised locations. “Our fourth quarter results were challenged by a difficult operating environment in the full-service auto aftermarket. As we believe was the case with other tire sellers, this was primarily driven by persistent weakness in tire units that began in fiscal January and continued throughout the quarter. In addition, severe winter weather in fiscal February across our geographic footprint forced temporary store closures and significantly reduced customer traffic during what should have been a busy winter maintenance period. We experienced a 5% decline in tire units during the quarter, which we believe aligns with broader industry trends. Our tire category was pressured as consumers continued to defer spending in higher-ticket categories and gravitated toward lower-cost alternatives. Both comparable store sales and tire units showed sequential improvement in fiscal March, partially recovering from the February weather disruptions. Store traffic also improved sequentially, giving us confidence that underlying demand for our services remains intact, despite a challenging backdrop. Despite the overall sales challenges, our higher-margin service categories continued to deliver value to our many full-service customers and reinforces our strength as a full-service provider. This capability serves as proof that our store teams are effectively utilizing ConfiDrive to identify and communicate service needs to customers. Our gross margin performance was a bright spot, expanding 90 basis points year-over-year to 33.9%. This improvement demonstrates productivity gains from our labor force, even as we navigate cost pressures and shifting customer preferences toward lower-tier products. Importantly, we maintained our marketing investment throughout the quarter, despite the sales headwinds. Monro delivered positive comp store sales in fiscal 2026 for the first time in three years, closed 145 stores that were not going to reach our profit expectations, and dramatically improved our inventory position. And, while the fourth quarter tested our resolve, our results for the full year of fiscal 2026 also validate that our strategic initiatives are working well over time and position us to capitalize when market conditions improve”, said Peter Fitzsimmons, President and Chief Executive Officer. Fitzsimmons continued, “The traction we’re seeing in some districts across our chain in tires and service categories reinforces that we have the ability to drive significant value for our customers that we believe will translate to sales and profit growth.” Full Year Results - Sales decreased 3.2% to $1.157 billion from $1.195 billion in fiscal 2025, primarily driven by the closure of 145 underperforming stores in the first quarter of fiscal 2026. Comparable store sales increased 1.4%, compared to a decrease of 3.5%2 in the prior year period. Comparable store sales, unadjusted for days, decreased 5.3% in the prior year period. - Gross margin for fiscal 2026 was 35.0%, compared to 34.9% in the prior year period, primarily due to lower occupancy costs as a percentage of sales due to store closures and higher comparable store sales, which were partially offset by higher technician labor costs as a percentage of sales, mostly due to wage inflation. - Total operating expenses for fiscal 2026 were $385.2 million, or 33.3% of sales compared to $405.1 million, or 33.9% of sales in the prior year period. The decrease was principally due to $25.1 million of lower costs from the closure of stores and $24.1 million of lower store impairment costs related to certain owned and leased assets, which were partially offset by $20.3 million of costs incurred in connection with consultants related to the Company’s operational improvement plan and $14.1 million of increased marketing costs. - Operating income was 1.7% of sales, compared to 1.1% of sales in the prior year period. Adjusted operating income, a non-GAAP measure, was 3.1% of sales, as compared to 3.4% of sales in the prior year period. Please refer to the reconciliation of adjusted operating income in the tables below for details regarding excluded items in fiscal 2026 and 2025. Please refer to the “Non-GAAP Financial Measures” section below for a discussion of this non-GAAP measure. - Net income for fiscal 2026 was $2.2 million, or $.03 per diluted share, as compared to a net loss of $5.2 million, or $.22 per diluted share in the prior year period. - Adjusted diluted earnings per share, a non-GAAP measure, in fiscal 2026 was $.42. This compares to adjusted diluted earnings per share of $.48 in fiscal 2025. Please refer to the reconciliation of adjusted net income and adjusted diluted earnings per share in the tables below for details regarding excluded items in fiscal 2026 and 2025. Please refer to the “Non-GAAP Financial Measures” section below for a discussion of these non-GAAP measures. Strong Financial Position During fiscal 2026, the Company generated operating cash flow of $70 million. As of March 28, 2026, the Company had availability under its credit facility of $410 million and cash and equivalents of $14.6 million. Fourth Quarter Fiscal 2026 and First Quarter Fiscal 2027 Cash Dividend On March 10, 2026, the Company paid a cash dividend for the fourth quarter of fiscal 2026 of $.28 per share. The Company also announced today that its Board of Directors has approved a cash dividend for the first quarter of fiscal year 2027 of $.28 per share. The cash dividend is payable on June 16, 2026 on the Company’s outstanding shares of common stock, including the shares of common stock to which the holders of the Company’s Class C Convertible Preferred Stock are entitled. The dividend is payable to shareholders of record on June 2, 2026. Company Expectations Monro is not providing fiscal 2027 financial guidance at this time but will provide perspective on its expectations for fiscal 2027 during its earnings conference call. Earnings Conference Call and Webcast The Company will host a conference call and audio webcast on May 27, 2026 at 8:30 a.m. Eastern Time. The conference call may be accessed by dialing 1-833-470-1428 and using the required access code of 275752. A replay will be available approximately two hours after the recording through Wednesday, June 10, 2026 and can be accessed by dialing 1-866-813-9403 and using the required access code of 930306. A replay can also be accessed via audio webcast at the Investors section of the Company’s website, located at corporate.monro.com/investors. About Monro, Inc. Monro, Inc. (NASDAQ: MNRO) is one of the nation’s leading automotive service and tire providers, delivering best-in-class auto care to communities across the country, from oil changes, tires and parts installation, to the most complex vehicle repairs. With a focus on sustainable growth, the Company generated approximately $1.2 billion in sales in fiscal 2026. Monro brings customers the professionalism and high-quality service they expect from a national retailer, with the convenience and trust of a neighborhood garage. Monro’s highly trained teammates and certified technicians bring together hands-on experience and state-of-the-art technology to diagnose and address automotive needs every day to get customers back on the road safely. For more information, please visit corporate.monro.com. Cautionary Note Regarding Forward-Looking Statements The statements contained in this press release that are not historical facts may contain statements of future expectations and other forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by such words and phrases as “continue,” “expect,” “may,” “believe,” “focus,” “will,” “plan,” “should,” and other similar words or phrases. Forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed. These factors include, but are not necessarily limited to uncertainty related to the financial and operational impact of the operational improvement plan, product demand, advances in automotive technologies including adoption of electric vehicle technology, our dependence on third parties for certain inventory, dependence on and competition within the primary markets in which the Company’s stores are located, the effect of general business or economic and geopolitical conditions on the Company’s business, including consumer spending levels, inflation, and unemployment, seasonality, our ability to generate sufficient cash flows from operations and service our debt obligations and comply with the terms of our credit agreement, changes in the U.S. trade environment, including the impact of tariffs on imported products, the impact of competitive services and pricing, product development, parts supply restraints or difficulties, the impact of weather trends and natural disasters, industry regulation, risks relating to leverage and debt service (including sensitivity to fluctuations in interest rates), continued availability of capital resources and financing, risks relating to protection of customer and employee personal data, risks relating to litigation, risks relating to integration of acquired businesses and other factors set forth elsewhere herein and in the Company’s Securities and Exchange Commission filings, including the Company’s annual report on Form 10-K for the fiscal year ended March 28, 2026, which the Company expects to file before the end of May 2026. Except as required by law, the Company does not undertake and specifically disclaims any obligation to update any forward-looking statement to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. Non-GAAP Financial Measures In addition to reporting operating income (loss), net income (loss), and diluted earnings (loss) per share (“EPS”), which are generally accepted accounting principles (“GAAP”) measures, this press release includes adjusted operating income (loss), adjusted net income (loss), and adjusted diluted EPS, which are non-GAAP financial measures. The Company has included reconciliations from adjusted operating income (loss), adjusted net income (loss), and adjusted diluted EPS to their most directly comparable GAAP measures, operating income (loss), net income (loss), and diluted EPS. Management views these non-GAAP financial measures as a way to better assess comparability between periods because management believes the non-GAAP financial measures show the Company’s core business operations while excluding certain items that are not part of our core operations such as consulting costs related to the Company’s operational improvement plan, management restructuring/transition costs, transition costs related to back-office optimization, store closing costs net of related gains on the sale of owned locations, lease assignments and early lease terminations, costs related to shareholder matters, costs related to store impairment charges, net gain on sale of corporate headquarters, write-off of debt issuance costs, and litigation reserve costs. These non-GAAP financial measures are not intended to represent, and should not be considered more meaningful than, or as an alternative to, their most directly comparable GAAP measures. These non-GAAP financial measures may be different from similarly titled non-GAAP financial measures used by other companies. Comparable Store Sales The Company defines comparable store sales as sales for locations that have been opened or owned at least one full fiscal year. The Company believes this period is generally required for new store sales levels to begin to normalize. Management uses comparable store sales to assess the operating performance of the Company’s stores and believes the metric is useful to investors because the Company’s overall results are dependent upon the results of its stores. Source: Monro, Inc.
MNRO-Fin MONRO, INC. Financial Highlights (Unaudited) (Dollars and share counts in thousands) Quarter Ended Fiscal March 2026 2025 % Change Sales $ 273,839 $ 294,992 (7.2 )% Cost of sales, including occupancy costs 180,965 197,712 (8.5 )% Gross profit 92,874 97,280 (4.5 )% Operating, selling, general and administrative expenses 98,090 121,126 (19.0 )% Operating loss (5,216 ) (23,846 ) 78.1 % Interest expense, net 4,054 4,399 (7.8 )% Other income, net (54 ) (144 ) (62.5 )% Loss before income taxes (9,216 ) (28,101 ) 67.2 % Benefit from income taxes (2,635 ) (6,826 ) (61.4 )% Net loss $ (6,581 ) $ (21,275 ) 69.1 % Diluted loss per share $ (0.23 ) $ (0.72 ) 68.1 % Weighted average number of diluted shares outstanding 30,020 29,950 Number of stores open (at end of quarter) 1,115 1,260 MONRO, INC. Financial Highlights (Unaudited) (Dollars and share counts in thousands) Twelve Months Ended Fiscal March 2026 2025 % Change Sales $ 1,157,176 $ 1,195,334 (3.2 )% Cost of sales, including occupancy costs 751,915 777,689 (3.3 )% Gross profit 405,261 417,645 (3.0 )% Operating, selling, general and administrative expenses 385,232 405,080 (4.9 )% Operating income 20,029 12,565 59.4 % Interest expense, net 17,233 18,924 (8.9 )% Other income, net (304 ) (446 ) (31.8 )% Income (loss) before income taxes 3,100 (5,913 ) 152.4 % Provision for (benefit from) income taxes 927 (731 ) 226.8 % Net income (loss) $ 2,173 $ (5,182 ) 141.9 % Diluted earnings (loss) per share $ 0.03 $ (0.22 ) 113.6 % Weighted average number of diluted shares outstanding 30,002 29,937 MONRO, INC. Financial Highlights (Unaudited) (Dollars in thousands) March 28, 2026 March 29, 2025 Assets Cash and equivalents $ 14,633 $ 20,762 Inventory 155,270 181,467 Other current assets 66,738 75,170 Total current assets 236,641 277,399 Property and equipment, net 241,857 258,949 Finance lease and financing obligation assets, net 148,807 159,794 Operating lease assets, net 175,899 181,587 Other non-current assets 764,773 764,094 Total assets $ 1,567,977 $ 1,641,823 Liabilities and Shareholders’ Equity Current liabilities $ 517,837 $ 524,290 Long-term debt 60,000 61,250 Long-term finance leases and financing obligations 193,173 220,783 Long-term operating lease liabilities 156,209 167,523 Other long-term liabilities 49,285 47,216 Total liabilities 976,504 1,021,062 Total shareholders’ equity 591,473 620,761 Total liabilities and shareholders’ equity $ 1,567,977 $ 1,641,823 MONRO, INC. Reconciliation of Adjusted Operating (Loss) Income (Unaudited) (Dollars in Thousands) Quarter Ended Fiscal March 2026 2025 Operating Loss $ (5,216 ) $ (23,846 ) Consulting costs related to operational improvement plan 2,664 - Transition costs related to back-office optimization 569 586 Store impairment charges 274 22,804 Costs related to shareholder matters 177 - Management restructuring/transition costs (a) - 1,778 Net gain on sale of corporate headquarters (b) - 58 Store closing costs, net (c) (1,020 ) 54 Adjusted Operating (Loss) Income $ (2,552 ) $ 1,434 MONRO, INC. Reconciliation of Adjusted Net Loss (Unaudited) (Dollars in Thousands) Quarter Ended Fiscal March 2026 2025 Net Loss $ (6,581 ) $ (21,275 ) Consulting costs related to operational improvement plan 2,664 - Transition costs related to back-office optimization 569 586 Store impairment charges 274 22,804 Costs related to shareholder matters 177 - Management restructuring/transition costs (a) - 1,778 Net gain on sale of corporate headquarters (b) - 58 Store closing costs, net (c) (1,020 ) 54 Provision for income taxes on pre-tax adjustments (d) (693 ) (6,246 ) Adjusted Net Loss $ (4,610 ) $ (2,241 ) MONRO, INC. Reconciliation of Adjusted Diluted Loss Per Share (Unaudited) Quarter Ended Fiscal March 2026 2025 Diluted Loss Per Share $ (0.23 ) $ (0.72 ) Consulting costs related to operational improvement plan 0.07 - Transition costs related to back-office optimization 0.01 0.01 Store impairment charges 0.01 0.57 Costs related to shareholder matters 0.00 - Management restructuring/transition costs (a) - 0.04 Net gain on sale of corporate headquarters (b) - 0.00 Store closing costs, net (c) (0.03 ) 0.00 Adjusted Diluted Loss Per Share $ (0.16 ) $ (0.09 ) Note: Amounts may not foot due to rounding. MONRO, INC. Reconciliation of Adjusted Operating Income (Unaudited) (Dollars in Thousands) Twelve Months Ended Fiscal March 2026 2025 Operating Income $ 20,029 $ 12,565 Consulting costs related to operational improvement plan 20,302 - Transition costs related to back-office optimization 2,185 2,263 Store impairment charges 274 24,355 Costs related to shareholder matters 274 - Management restructuring/transition costs (a) - 1,778 Litigation reserve - 650 Net gain on sale of corporate headquarters (b) - (2,508 ) Store closing costs, net (c) (7,290 ) 1,203 Adjusted Operating Income $ 35,774 $ 40,306 MONRO, INC. Reconciliation of Adjusted Net Income (Unaudited) (Dollars in Thousands) Twelve Months Ended Fiscal March 2026 2025 Net Income (Loss) $ 2,173 $ (5,182 ) Consulting costs related to operational improvement plan 20,302 - Transition costs related to back-office optimization 2,185 2,263 Store impairment charges 274 24,355 Costs related to shareholder matters 274 - Write-off of debt issuance costs 263 - Management restructuring/transition costs (a) - 1,778 Litigation reserve - 650 Net gain on sale of corporate headquarters (b) - (2,508 ) Store closing costs, net (c) (7,290 ) 1,203 Provision for income taxes on pre-tax adjustments (d) (4,163 ) (6,935 ) Adjusted Net Income $ 14,018 $ 15,624 MONRO, INC. Reconciliation of Adjusted Diluted Earnings Per Share (Unaudited) Twelve Months Ended Fiscal March 2026 2025 Diluted Earnings (Loss) Per Share $ 0.03 $ (0.22 ) Consulting costs related to operational improvement plan 0.50 - Transition costs related to back-office optimization 0.05 0.06 Store impairment charges 0.01 0.61 Costs related to shareholder matters 0.01 - Write-off of debt issuance costs 0.01 - Management restructuring/transition costs (a) - 0.04 Litigation reserve - 0.02 Net gain on sale of corporate headquarters (b) - (0.06 ) Store closing costs, net (c) (0.18 ) 0.03 Adjusted Diluted Earnings Per Share $ 0.42 $ 0.48 Note: Amounts may not foot due to rounding. a) Costs incurred in connection with restructuring and elimination of certain management positions. b) Gain on sale of the corporate headquarters building net of associated closing and relocation costs. c) Amounts in fiscal 2026 include the closing costs and asset write-offs related to the closure of 145 underperforming stores, in accordance with the store closure plan, net of related gains on the sale of owned locations, lease assignments and early lease terminations. d) The adjustments to diluted EPS reflect adjusted effective tax rates of 26.0 percent and 24.7 percent for the quarter ended fiscal March 2026 and 2025, respectively. The adjustments to diluted EPS reflect adjusted effective tax rates of 26.0 percent and 25.0 percent for the twelve months ended fiscal March 2026 and 2025, respectively. This represents the tax effect of non-GAAP adjustments calculated at an estimated blended statutory tax rate. ____________________ 1 Adjusted for six fewer selling days in the fourth quarter of fiscal 2025 due to an extra week of sales in fiscal 2024 and a shift in the Christmas holiday from the fourth quarter in fiscal 2024 to the third quarter in fiscal 2025. 2 Adjusted for a 53-week year in fiscal 2024. View source version on businesswire.com: https://www.businesswire.com/news/home/20260527470245/en/ Investors and Media:
Felix Veksler
Vice President, Investor Relations
ir@monro.com Original: Monro, Inc. Announces Fourth Quarter and Fiscal 2026 Financial Results

Monro, Inc. Announces Third Quarter Fiscal 2026 Financial ResultsJanuary 28, 2026 12:30 PM
Business Wire

Third Quarter Comparable Store Sales Increased 1.2%

Third Quarter Gross Margin Expanded 60 Basis Points Year-over-Year

Third Quarter Diluted Earnings per Share of $.35; Adjusted Diluted Earnings per Share1 of $.16

Distributed Third Quarter Fiscal 2026 Cash Dividend of $.28 per Share

Monro, Inc. (Nasdaq: MNRO), a leading provider of automotive repair and tire services, today announced financial results for its third quarter ended December 27, 2025.

Third Quarter Results

Sales for the third quarter of the fiscal year ending March 28, 2026 (“fiscal 2026”) decreased 4.0% to $293.4 million, as compared to sales of $305.8 million for the third quarter of the fiscal year ended March 29, 2025 (“fiscal 2025”). This was primarily driven by a reduction in sales from the closure of 145 underperforming stores in the first quarter of fiscal 2026, partially offset by a 1.2% increase in comparable store sales from continuing store locations. Comparable store sales, adjusted for days, decreased 0.8%2 in the prior year period. Comparable store sales, unadjusted for days, decreased 1.9% in the prior year period.

Comparable store sales increased 7% for front end/shocks and 5% for tires compared to the prior year period. Comparable store sales decreased 1% for brakes, 2% for maintenance services, 13% for alignments, and 16% for batteries compared to the prior year period. Please refer to the “Comparable Store Sales” section below for a discussion of how the Company defines comparable store sales.

Gross margin increased 60 basis points compared to the prior year period, primarily from lower material costs and lower occupancy cost as a percentage of sales, which were partially offset by higher technician labor costs as a percentage of sales, mostly due to wage inflation.

Total operating expenses for the third quarter of fiscal 2026 were $83.8 million, or 28.6% of sales, as compared to $94.8 million, or 31.0% of sales in the prior year period. The decrease was primarily driven by an increase of $14.0 million of net gains from closed store real estate dispositions and $7.3M of lower costs from the closure of 145 underperforming stores in the first quarter of fiscal 2026. This was partially offset by $6.2 million of increased marketing costs to support topline growth and $4.7 million of costs incurred in connection with consultants related to the Company’s operational improvement plan.

Operating income for the third quarter of fiscal 2026 was $18.6 million, or 6.3% of sales, as compared to operating income of $10.0 million, or 3.3% of sales in the prior year period. Adjusted operating income, a non-GAAP measure, for the third quarter of fiscal 2026 was $10.3 million, or 3.5% of sales, as compared to $11.7 million, or 3.8% of sales in the prior year period. Please refer to the reconciliation of adjusted operating income in the table below for details regarding excluded items in the third quarters of fiscal 2026 and 2025. Please refer to the “Non-GAAP Financial Measures” section below for a discussion of this non-GAAP measure.

Interest expense was $4.0 million for the third quarter of fiscal 2026, as compared to $4.2 million for the third quarter of fiscal 2025, principally due to a decrease in weighted average debt.

Income tax expense in the third quarter of fiscal 2026 was $3.4 million, or an effective tax rate of 23.6%, compared to $1.2 million, or an effective tax rate of 21.2% in the prior year period. The year-over-year difference in effective tax rate is primarily related to the impact of an income tax benefit in the prior year period from the settlement of certain state income tax returns and the impact from other discrete tax adjustments, none of which are individually significant.

Net income for the third quarter of fiscal 2026 was $11.1 million, as compared to net income of $4.6 million in the same period of the prior year. Diluted earnings per share for the third quarter of fiscal 2026 was $.35. This compares to diluted earnings per share of $.15 in the third quarter of fiscal 2025. Adjusted diluted earnings per share, a non-GAAP measure, for the third quarter of fiscal 2026 was $.16. This compares to adjusted diluted earnings per share of $.19 in the third quarter of fiscal 2025. Please refer to the reconciliation of adjusted net income and adjusted diluted earnings per share in the tables below for details regarding excluded items in the third quarters of fiscal 2026 and 2025. Please refer to the “Non-GAAP Financial Measures” section below for a discussion of these non-GAAP measures.

During the third quarter of fiscal 2026, the Company closed one store. Monro ended the quarter with 1,115 company-operated stores and 48 franchised locations.

“After we saw some softness in consumer demand in October, the Monro team drove growth in comparable store sales in November and December. Further, when adjusting for a shift in the timing of the Christmas holiday in the prior year, the months of November and December as well as the third quarter, mark the first time we delivered positive comps on a 2-year stack in over two years. This has also enabled us to report our fourth consecutive quarter of positive comps for the first time in several years. We believe we were able to take share in our tire category as soon as winter hit as our stores were well-prepared with proper staffing, an updated tire assortment, and additional marketing spend. For the second quarter in a row, we delivered solid gross margin performance with a gross margin rate that expanded 60 basis points year-over-year to 34.9%. We also re-invested the selling, general, and administrative expense savings from our closed stores into additional marketing to support topline growth. For the third quarter in a row, we reduced inventory levels across the system, this time by over $7 million. We have now achieved an overall inventory reduction of more than $28 million, which is 16% since the end of March, just nine months ago. This is a clear indication of how we’ve continued to manage our inventories more efficiently in fiscal 2026”, said Peter Fitzsimmons, President and Chief Executive Officer.

Fitzsimmons continued, “Our sales momentum has continued into fiscal January with preliminary comp store sales up almost 1%. Looking forward, and coupled with our increased marketing spend, we believe higher expected consumer tax refunds should provide a tailwind to topline trends for the remainder of fiscal 2026. We continue to expect to deliver positive comp store sales for the full fiscal year.”

First Nine Months Results

For the current nine-month period:

Sales decreased 1.9% to $883.3 million from $900.3 million in the same period of the prior year. Comparable store sales increased 2.6%, compared to a decrease of 5.6%2 in the prior year period. Comparable store sales, unadjusted for days, decreased 5.9% in the prior year period.

Gross margin for the nine-month period was 35.4%, compared to 35.6% in the prior year period.

Operating income was 2.9% of sales, compared to 4.0% of sales in the prior year period. Adjusted operating income, a non-GAAP measure, was $38.3 million, or 4.3% of sales, as compared to $38.9 million, or 4.3% of sales in the prior year period. Please refer to the reconciliation of adjusted operating income in the tables below for details regarding excluded items in the first nine months of fiscal 2026 and 2025. Please refer to the “Non-GAAP Financial Measures” section below for a discussion of this non-GAAP measure.

Net income for the first nine months of fiscal 2026 was $8.8 million, or $.26 per diluted share, as compared to net income of $16.1 million, or $.52 per diluted share in the prior year period.

Adjusted diluted earnings per share, a non-GAAP measure, in the first nine months of fiscal 2026 was $.58. This compares to adjusted diluted earnings per share of $.57 in the first nine months of fiscal 2025. Please refer to the reconciliation of adjusted net income and adjusted diluted earnings per share in the tables below for details regarding excluded items in the first nine months of fiscal 2026 and 2025. Please refer to the “Non-GAAP Financial Measures” section below for a discussion of these non-GAAP measures.

Strong Financial Position

During the first nine months of fiscal 2026, the Company generated operating cash flow of $48 million. As of December 27, 2025, the Company had availability under its credit facility of $424.9 million and cash and equivalents of $4.9 million.

Third Quarter Fiscal 2026 Cash Dividend

On December 16, 2025, the Company paid a cash dividend for the third quarter of fiscal 2026 of $.28 per share.

Company Expectations

Monro is not providing fiscal 2026 financial guidance at this time but will provide perspective on its expectations for fiscal 2026 during its earnings conference call.

Earnings Conference Call and Webcast

The Company will host a conference call and audio webcast on January 28, 2026 at 8:30 a.m. Eastern Time. The conference call may be accessed by dialing 1-833-470-1428 and using the required access code of 539351. A replay will be available approximately two hours after the recording through Wednesday, February 11, 2026 and can be accessed by dialing 1-866-813-9403 and using the required access code of 693184. A replay can also be accessed via audio webcast at the Investors section of the Company’s website, located at corporate.monro.com/investors.

About Monro, Inc.

Monro, Inc. (NASDAQ: MNRO) is one of the nation’s leading automotive service and tire providers, delivering best-in-class auto care to communities across the country, from oil changes, tires and parts installation, to the most complex vehicle repairs. With a focus on sustainable growth, the Company generated approximately $1.2 billion in sales in fiscal 2025. Monro brings customers the professionalism and high-quality service they expect from a national retailer, with the convenience and trust of a neighborhood garage. Monro’s highly trained teammates and certified technicians bring together hands-on experience and state-of-the-art technology to diagnose and address automotive needs every day to get customers back on the road safely. For more information, please visit corporate.monro.com.

Cautionary Note Regarding Forward-Looking Statements

The statements contained in this press release that are not historical facts may contain statements of future expectations and other forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by such words and phrases as “continue,” “expect,” “may,” “believe,” “focus,” “will,” “plan,” and other similar words or phrases. Forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed. These factors include, but are not necessarily limited to uncertainty related to the financial and operational impact of the operational improvement plan, product demand, advances in automotive technologies including adoption of electric vehicle technology, our dependence on third parties for certain inventory, dependence on and competition within the primary markets in which the Company’s stores are located, the effect of general business or economic and geopolitical conditions on the Company’s business, including consumer spending levels, inflation, and unemployment, seasonality, our ability to generate sufficient cash flows from operations and service our debt obligations and comply with the terms of our credit agreement, changes in the U.S. trade environment, including the impact of tariffs on products imported from China and other countries, the impact of competitive services and pricing, product development, parts supply restraints or difficulties, the impact of weather trends and natural disasters, industry regulation, risks relating to leverage and debt service (including sensitivity to fluctuations in interest rates), continued availability of capital resources and financing, risks relating to protection of customer and employee personal data, risks relating to litigation, risks relating to integration of acquired businesses and other factors set forth elsewhere herein and in the Company’s Securities and Exchange Commission filings, including the Company’s annual report on Form 10-K for the fiscal year ended March 29, 2025. Except as required by law, the Company does not undertake and specifically disclaims any obligation to update any forward-looking statement to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Non-GAAP Financial Measures

In addition to reporting operating income, net income, and diluted earnings per share (“EPS”), which are generally accepted accounting principles (“GAAP”) measures, this press release includes adjusted operating income, adjusted net income, and adjusted diluted EPS, which are non-GAAP financial measures. The Company has included reconciliations from adjusted operating income, adjusted net income, and adjusted diluted EPS to their most directly comparable GAAP measures, operating income, net income, and diluted EPS. Management views these non-GAAP financial measures as a way to better assess comparability between periods because management believes the non-GAAP financial measures show the Company’s core business operations while excluding certain items that are not part of our core operations such as consulting costs related to the Company’s operational improvement plan, transition costs related to back-office optimization, store closing costs net of related gains on the sale of owned locations, lease assignments and early lease terminations, costs related to shareholder matters, costs related to store impairment charges, net gain on sale of corporate headquarters, litigation reserve, and write-off of debt issuance costs.

These non-GAAP financial measures are not intended to represent, and should not be considered more meaningful than, or as an alternative to, their most directly comparable GAAP measures. These non-GAAP financial measures may be different from similarly titled non-GAAP financial measures used by other companies.

Comparable Store Sales

The Company defines comparable store sales as sales for locations that have been opened or owned at least one full fiscal year. The Company believes this period is generally required for new store sales levels to begin to normalize. Management uses comparable store sales to assess the operating performance of the Company’s stores and believes the metric is useful to investors because the Company’s overall results are dependent upon the results of its stores.

Source: Monro, Inc.

MNRO-Fin

MONRO, INC.

Financial Highlights

(Unaudited)

(Dollars and share counts in thousands)

Quarter Ended Fiscal

December

2025

2024

% Change

Sales

$

293,387

$

305,769

(4.0)%

Cost of sales, including occupancy costs

191,020

200,966

(4.9)%

Gross profit

102,367

104,803

(2.3)%

Operating, selling, general and administrative expenses

83,797

94,840

(11.6)%

Operating income

18,570

9,963

86.4%

Interest expense, net

4,045

4,246

(4.7)%

Other income, net

(54)

(101)

(46.5)%

Income before income taxes

14,579

5,818

150.6%

Provision for income taxes

3,440

1,235

178.5%

Net income

$

11,139

$

4,583

143.1%

Diluted earnings per share
$

0.35

$

0.15

133.3%

Weighted average number of diluted shares outstanding

31,403

31,273

Number of stores open (at end of quarter)

1,115

1,263

MONRO, INC.

Financial Highlights

(Unaudited)

(Dollars and share counts in thousands)

Nine Months Ended Fiscal

December

2025

2024

% Change

Sales

$

883,337

$

900,342

(1.9)%

Cost of sales, including occupancy costs

570,950

579,976

(1.6)%

Gross profit

312,387

320,366

(2.5)%

Operating, selling, general and administrative expenses

287,142

283,954

1.1%

Operating income

25,245

36,412

(30.7)%

Interest expense, net

13,179

14,526

(9.3)%

Other income, net

(250)

(303)

(17.5)%

Income before income taxes

12,316

22,189

(44.5)%

Provision for income taxes

3,562

6,096

(41.6)%

Net income

$

8,754

$

16,093

(45.6)%

Diluted earnings per share
$

0.26

$

0.52

(50.0)%

Weighted average number of diluted shares outstanding

31,268

31,221

MONRO, INC.

Financial Highlights

(Unaudited)

(Dollars in thousands)

December 27,

2025

March 29,

2025

Assets

Cash and equivalents

$

4,912

$

20,762

Inventory

153,277

181,467

Other current assets

70,625

75,170

Total current assets

228,814

277,399

Property and equipment, net

240,842

258,949

Finance lease and financing obligation assets, net

154,995

159,794

Operating lease assets, net

179,776

181,587

Other non-current assets

765,547

764,094

Total assets

$

1,569,974

$

1,641,823

Liabilities and Shareholders’ Equity

Current liabilities

$

503,325

$

524,290

Long-term debt

45,000

61,250

Long-term finance leases and financing obligations

203,235

220,783

Long-term operating lease liabilities

161,199

167,523

Other long-term liabilities

52,271

47,216

Total liabilities

965,030

1,021,062

Total shareholders’ equity

604,944

620,761

Total liabilities and shareholders’ equity

$

1,569,974

$

1,641,823

MONRO, INC.

Reconciliation of Adjusted Operating Income

(Unaudited)

(Dollars in Thousands)

Quarter Ended Fiscal December

2025

2024

Operating Income

$

18,570

$

9,963

Consulting costs related to operational improvement plan

4,652

-

Transition costs related to back-office optimization

518

527

Costs related to shareholder matters

97

-

Litigation reserve

-

650

Net gain on sale of corporate headquarters (a)

-

73

Store closing costs, net (b)

(13,525)

437

Adjusted Operating Income

$

10,312

$

11,650

MONRO, INC.

Reconciliation of Adjusted Net Income

(Unaudited)

(Dollars in Thousands)

Quarter Ended Fiscal December

2025

2024

Net Income

$

11,139

$

4,583

Consulting costs related to operational improvement plan

4,652

-

Transition costs related to back-office optimization

518

527

Costs related to shareholder matters

97

-

Litigation reserve

-

650

Net gain on sale of corporate headquarters (a)

-

73

Store closing costs, net (b)

(13,525)

437

Provision for income taxes on pre-tax adjustments (c)

2,147

(479)

Adjusted Net Income

$

5,028

$

5,791

MONRO, INC.

Reconciliation of Adjusted Diluted Earnings Per Share (EPS)

(Unaudited)

Quarter Ended Fiscal

December

2025

2024

Diluted Earnings Per Share

$

0.35

$

0.15

Consulting costs related to operational improvement plan

0.11

-

Transition costs related to back-office optimization

0.01

0.01

Costs related to shareholder matters

0.00

-

Litigation reserve

-

0.01

Net gain on sale of corporate headquarters (a)

-

0.00

Store closing costs, net (b)

(0.32)

0.01

Adjusted Diluted Earnings Per Share

$

0.16

$

0.19

Note: Amounts may not foot due to rounding.

MONRO, INC.

Reconciliation of Adjusted Operating Income

(Unaudited)

(Dollars in Thousands)

Nine Months Ended

Fiscal December

2025

2024

Operating Income

$

25,245

$

36,412

Consulting costs related to operational improvement plan

17,638

-

Transition costs related to back-office optimization

1,616

1,677

Costs related to shareholder matters

97

-

Store impairment charges

-

1,551

Litigation reserve

-

650

Net gain on sale of corporate headquarters (a)

-

(2,566)

Store closing costs, net (b)

(6,270)

1,149

Adjusted Operating Income

$

38,326

$

38,873

MONRO, INC.

Reconciliation of Adjusted Net Income

(Unaudited)

(Dollars in Thousands)

Nine Months Ended

Fiscal December

2025

2024

Net Income

$

8,754

$

16,093

Consulting costs related to operational improvement plan

17,638

-

Transition costs related to back-office optimization

1,616

1,677

Write-off of debt issuance costs

263

-

Costs related to shareholder matters

97

-

Store impairment charges

-

1,551

Litigation reserve

-

650

Net gain on sale of corporate headquarters (a)

-

(2,566)

Store closing costs, net (b)

(6,270)

1,149

Provision for income taxes on pre-tax adjustments (c)

(3,469)

(689)

Adjusted Net Income

$

18,629

$

17,865

MONRO, INC.

Reconciliation of Adjusted Diluted Earnings Per Share (EPS)

(Unaudited)

Nine Months Ended

Fiscal December

2025

2024

Diluted Earnings Per Share

$

0.26

$

0.52

Consulting costs related to operational improvement plan

0.42

-

Transition costs related to back-office optimization

0.04

0.04

Write-off of debt issuance costs

0.01

-

Costs related to shareholder matters

0.00

-

Store impairment charges

-

0.04

Litigation reserve

-

0.01

Net gain on sale of corporate headquarters (a)

-

(0.06)

Store closing costs, net (b)

(0.15)

0.03

Adjusted Diluted Earnings Per Share

$

0.58

$

0.57

Note: Amounts may not foot due to rounding.

a)

Amounts include the gain on sale of the corporate headquarters building, net of associated closing and relocation costs.

b)

Amounts include closing costs and asset write-offs related to the closure of 145 underperforming stores, in accordance with the Store Closure Plan, net of related gains on the sale of owned locations, lease assignments and early lease terminations.

c)

The adjustments to diluted EPS reflect adjusted effective tax rates of 26.0 percent and 28.4 percent for the quarter ended fiscal December 2025 and 2024, respectively. The adjustments to diluted EPS reflect adjusted effective tax rates of 26.0 percent and 28.0 percent for the nine months ended fiscal December 2025 and 2024, respectively. This represents the tax effect of non-GAAP adjustments calculated at an estimated blended statutory tax rate.

__________________________

1 Adjusted diluted EPS is a non-GAAP measure. Please refer to the “Non-GAAP Financial Measures” section below for a discussion of this non-GAAP measure.

2 Adjusted for one fewer selling day in the third quarter of fiscal 2025 due to a shift in the timing of the Christmas holiday from the fourth quarter in fiscal 2024 to the third quarter in fiscal 2025

View source version on businesswire.com: https://www.businesswire.com/news/home/20260128399552/en/
Investors and Media: Felix Veksler

Vice President, Investor Relations

ir@monro.com

Original: Monro, Inc. Announces Third Quarter Fiscal 2026 Financial Results