Monro Muffler Brake (NASDAQ:MNRO) Posts Quarterly Earnings Results, Misses Expectations By $0.13 EPS

Monro Muffler Brake (NASDAQ:MNRO) posted its quarterly earnings results on Wednesday. The auto parts company reported ($0.09) earnings per share for the quarter, missing the consensus estimate of $0.04 by ($0.13), FiscalAI reports. Monro Muffler Brake had a return on equity of 0.80% and a net margin of 0.71%.The company had revenue of $287.13 million during the quarter, compared to analysts’ expectations of $286.30 million. During the same quarter in the previous year, the company earned $0.22 EPS. The business’s quarterly revenue was down 4.6% on a year-over-year basis.

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 Trading Down 5.0%

Shares of MNRO stock opened at $12.77 on Friday. The company has a current ratio of 0.49, a quick ratio of 0.16 and a debt-to-equity ratio of 0.50. Monro Muffler Brake has a 12-month low of $12.26 and a 12-month high of $23.91. The stock has a market capitalization of $398.94 million, a P/E ratio of 58.71, a P/E/G ratio of 3.05 and a beta of 1.01. The firm’s 50 day moving average is $16.22 and its 200 day moving average is $17.65.

Monro Muffler Brake Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were issued a $0.28 dividend. The ex-dividend date was Tuesday, June 2nd. This represents a $1.12 annualized dividend and a yield of 8.8%. Monro Muffler Brake’s dividend payout ratio (DPR) is currently 5,600.00%.

Analysts Set New Price Targets

MNRO has been the topic of several analyst reports. Wall Street Zen downgraded Monro Muffler Brake from a “hold” rating to a “sell” rating in a report on Saturday, May 30th. Weiss Ratings raised Monro Muffler Brake from a “sell (d)” rating to a “sell (d+)” rating in a research report on Thursday, May 28th. Stephens dropped their price target on shares of Monro Muffler Brake from $20.00 to $17.00 and set an “overweight” rating on the stock in a research note on Thursday. Zacks Research downgraded shares of Monro Muffler Brake from a “hold” rating to a “strong sell” rating in a research report on Monday, June 29th. Finally, Wells Fargo & Company reduced 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. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $24.33.

Hedge Funds Weigh In On Monro Muffler Brake

Several hedge funds and other institutional investors have recently modified their holdings of the company. Goldman Sachs Group Inc. grew its holdings in shares of Monro Muffler Brake by 11.1% in the first quarter. Goldman Sachs Group Inc. now owns 688,075 shares of the auto parts company’s stock worth $9,956,000 after acquiring an additional 68,862 shares during the period. Empowered Funds LLC lifted its holdings 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 valued at $2,049,000 after acquiring an additional 7,464 shares during the period. Jane Street Group LLC boosted its position 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 worth $1,155,000 after purchasing an additional 36,734 shares during the last quarter. Jones Financial Companies Lllp bought a new stake in shares of Monro Muffler Brake during the 1st quarter valued at about $559,000. Finally, Royal Bank of Canada increased its position in shares of Monro Muffler Brake by 139.8% during the 1st quarter. Royal Bank of Canada now owns 27,904 shares of the auto parts company’s stock valued at $404,000 after purchasing an additional 16,268 shares during the last quarter.

About Monro Muffler Brake

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.