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

Monro Muffler Brake (NASDAQ:MNRO) issued 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 2.33% and a net margin of 0.19%.The business had revenue of $287.13 million during the quarter, compared to analyst estimates of $286.30 million. During the same quarter last year, the company 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

MNRO traded down $0.01 on Thursday, reaching $13.25. The stock had a trading volume of 167,139 shares, compared to its average volume of 935,666. The business’s 50-day moving average price is $16.28 and its two-hundred day moving average price is $17.70. The company has a market cap of $413.97 million, a P/E ratio of 664.25, a price-to-earnings-growth ratio of 3.95 and a beta of 1.01. Monro Muffler Brake has a 12-month low of $12.26 and a 12-month high of $23.91. The company has a current ratio of 0.46, a quick ratio of 0.16 and a debt-to-equity ratio of 0.43.

Monro Muffler Brake Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were issued a $0.28 dividend. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $1.12 dividend on an annualized basis and a yield of 8.5%. Monro Muffler Brake’s payout ratio is presently 5,600.00%.

Institutional Investors Weigh In On Monro Muffler Brake

Institutional investors have recently modified their holdings of the business. Royal Bank of Canada increased its stake in shares of Monro Muffler Brake by 139.8% in 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 in the last quarter. Jones Financial Companies Lllp purchased a new position in Monro Muffler Brake during the first quarter worth approximately $559,000. Jane Street Group LLC boosted its position in 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. Goldman Sachs Group Inc. grew its holdings in 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 valued at $9,956,000 after purchasing an additional 68,862 shares during the period. Finally, Empowered Funds LLC grew 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 purchasing an additional 7,464 shares during the period.

Monro Muffler Brake News Summary

Here are the key news stories impacting Monro Muffler Brake this week:

• Positive Sentiment: Stephens maintained an “overweight” rating on Monro, although it reduced its price target from $20 to $17. The revised target still implies approximately 28% upside from the recently cited price, suggesting the analyst sees meaningful recovery potential. Benzinga
• Neutral Sentiment: Management expects modest comparable-store sales growth in fiscal 2027 as operational improvements take effect. However, the outlook was largely qualitative, while gross-margin pressure and mixed business momentum leave uncertainty about the timing and strength of any recovery. Monro Earnings Call Shows Mixed Momentum
• Negative Sentiment: Monro reported first-quarter revenue of $287.1 million, down 4.6% year over year, and posted a $0.09-per-share loss versus analyst expectations for $0.04 of earnings. Results also deteriorated from $0.22 EPS in the prior-year quarter. Negative cash flow, very low liquidity ratios and ongoing profitability concerns are adding to investor unease. Monro First-Quarter Fiscal 2027 Results Zacks Earnings Summary

Wall Street Analysts Forecast Growth

Several research firms have recently commented on MNRO. 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. Stephens reduced their target price on shares of Monro Muffler Brake from $20.00 to $17.00 and set an “overweight” rating for the company in a report on Thursday. Wall Street Zen downgraded shares of Monro Muffler Brake from a “hold” rating to a “sell” rating in a research report on Saturday, May 30th. Zacks Research lowered shares of Monro Muffler Brake from a “hold” rating to a “strong sell” rating in a report on Monday, June 29th. Finally, Wells Fargo & Company cut their price target on Monro Muffler Brake from $20.00 to $16.00 and set an “equal weight” rating on the stock in a research report on Thursday, June 11th. Two investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $24.33.

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.