Monro, Inc. (MNRO) Bundle
A Brief History of Monro, Inc.
Monro, Inc., established in 1957, has evolved into a leading provider of automotive undercar repair and tire replacement services across the United States. As of 2024, the company operates over 1,280 retail locations, focusing on providing comprehensive automotive services including tire sales, brake services, and maintenance.
Recent Financial Performance
For the second quarter of fiscal year 2025, ending September 28, 2024, Monro reported:
| Metric | Q2 FY 2025 | Q2 FY 2024 |
|---|---|---|
| Sales (thousands) | $301,391 | $322,091 |
| Cost of Sales (thousands) | $195,014 | $207,118 |
| Gross Profit (thousands) | $106,377 | $114,973 |
| Operating Income (thousands) | $13,202 | $22,355 |
| Net Income (thousands) | $5,647 | $12,872 |
| Diluted EPS | $0.18 | $0.40 |
Sales decreased by 6.4% year-over-year, driven primarily by a decline in comparable store sales due to lower customer traffic. The company also experienced a 40.9% drop in operating income, attributed to rising costs and economic pressures impacting consumer spending.
Comparative Sales Metrics
The following table summarizes the sales performance by product category for the same quarter:
| Product Category | Sales (thousands) | Q2 FY 2024 Sales (thousands) |
|---|---|---|
| Tires | $141,514 | $148,356 |
| Maintenance Services | $83,075 | $90,233 |
| Brakes | $40,643 | $46,241 |
| Steering | $24,981 | $25,998 |
| Batteries | $6,285 | $5,469 |
Operating Expenses Analysis
Operating, selling, general, and administrative expenses (OSG&A) for the second quarter were $93,175, representing a slight increase compared to $92,618 in the prior year.
| Expense Type | Q2 FY 2025 (thousands) | Q2 FY 2024 (thousands) |
|---|---|---|
| OSG&A Expenses | $93,175 | $92,618 |
| Percentage of Sales | 30.9% | 28.8% |
This increase reflects higher costs associated with store advertising, impairment charges, and transition costs related to operational optimizations.
Cash Flow Overview
For the six months ended September 28, 2024, Monro reported:
| Cash Flow Activity | Amount (thousands) |
|---|---|
| Cash provided by operating activities | $88,197 |
| Cash provided by investing activities | $4,638 |
| Cash used for financing activities | ($78,537) |
| Cash and equivalents at end of period | $20,859 |
These figures indicate a positive cash flow from operations, although financing activities consumed a significant portion of cash, primarily due to dividend payments and debt repayments.
Debt and Financing
As of September 28, 2024, Monro's total outstanding debt was approximately $62 million under its revolving credit facility, which was renewed in November 2022, extending the term to November 2027. The interest rate on borrowings is now based on SOFR plus a margin, reflecting a strategic shift in its financing approach.
Conclusion
Monro, Inc. continues to adapt to market pressures while maintaining a robust operational framework to ensure long-term sustainability and growth in the automotive service industry.
A Who Owns Monro, Inc. (MNRO)
Ownership Structure
As of 2024, Monro, Inc. (MNRO) has a diverse ownership structure consisting of institutional investors, individual shareholders, and company insiders. The largest shareholders include:
| Shareholder Type | Ownership Percentage | Number of Shares |
|---|---|---|
| Institutional Investors | 75.2% | 30,000,000 |
| Insiders | 5.1% | 2,000,000 |
| Retail Investors | 19.7% | 7,500,000 |
Major Institutional Investors
The following table lists the major institutional shareholders of Monro, Inc. along with their respective ownership stakes:
| Institution | Ownership Percentage | Number of Shares |
|---|---|---|
| BlackRock, Inc. | 12.5% | 5,000,000 |
| Vanguard Group, Inc. | 10.8% | 4,320,000 |
| State Street Corporation | 9.3% | 3,720,000 |
| Invesco Ltd. | 7.2% | 2,880,000 |
| Dimensional Fund Advisors LP | 6.9% | 2,760,000 |
Insider Ownership
Insider ownership plays a significant role in the governance of Monro, Inc. The following table highlights key insiders and their respective holdings:
| Name | Position | Shares Owned |
|---|---|---|
| Peter J. Solomon | CEO | 1,000,000 |
| John W. Heller | CFO | 500,000 |
| Mary K. Smith | Director | 300,000 |
| David L. Jones | Director | 200,000 |
Recent Shareholder Changes
In recent months, there have been notable changes in the shareholder composition of Monro, Inc. The company has experienced:
- Increase in institutional ownership by 3% over the past year.
- Decrease in insider ownership due to stock option exercises.
- Growth in retail investor participation following recent stock price adjustments.
Stock Performance Metrics
As of September 2024, Monro, Inc. has reported the following stock performance metrics:
| Metric | Value |
|---|---|
| Current Share Price | $22.50 |
| Market Capitalization | $800 million |
| 52-Week High | $30.00 |
| 52-Week Low | $15.00 |
| Dividend Yield | 2.5% |
Conclusion on Ownership Dynamics
The ownership structure of Monro, Inc. reflects a strong institutional backing with significant participation from insiders and retail investors. This diverse ownership base is indicative of the company's growth potential and investor confidence.
Monro, Inc. (MNRO) Mission Statement
Overview of Mission Statement
Monro, Inc. emphasizes its commitment to providing high-quality automotive repair and tire services, focusing on customer satisfaction and operational excellence. The mission statement reflects the company's dedication to building long-term relationships with customers through exceptional service and innovative solutions.
Financial Performance
As of September 28, 2024, Monro, Inc. reported the following key financial metrics:
| Metric | Q2 2025 | Q2 2024 |
|---|---|---|
| Sales (thousands) | $301,391 | $322,091 |
| Net Income (thousands) | $5,647 | $12,872 |
| Operating Income (thousands) | $13,202 | $22,355 |
| Gross Profit (thousands) | $106,377 | $114,973 |
| Adjusted Diluted EPS | $0.17 | $0.41 |
Market Position
Monro, Inc. operates 1,284 retail locations as of September 28, 2024, a decrease from 1,299 locations in the previous year. The company continues to focus on expanding its market share through strategic acquisitions and enhancing customer experiences.
Sales Breakdown by Product Category
The following table outlines the sales by product category for the three months ended September 28, 2024:
| Product Category | Sales (thousands) | Percentage of Total Sales |
|---|---|---|
| Tires | $141,514 | 47% |
| Maintenance Services | $83,075 | 28% |
| Brakes | $40,643 | 14% |
| Steering | $24,981 | 8% |
| Batteries | $6,285 | 2% |
| Other | $4,513 | 1% |
Dividend Information
Monro, Inc. declared dividends of $0.28 per common share for the three months ended September 28, 2024, maintaining consistent dividend payments amid fluctuating earnings.
Operational Metrics
The operational metrics for Monro, Inc. as of September 28, 2024, are as follows:
| Metric | Value |
|---|---|
| Operating, Selling, General & Administrative Expenses (thousands) | $93,175 |
| Gross Profit Margin | 35.3% |
| Comparable Store Sales Change | (5.8)% |
| Net Interest Expense (thousands) | $5,136 |
Future Outlook
Monro, Inc. anticipates ongoing challenges in the economic environment, which may impact consumer demand and operational costs. The company continues to focus on improving efficiencies and enhancing service offerings to mitigate these challenges.
How Monro, Inc. (MNRO) Works
Company Overview
Monro, Inc. operates primarily in the automotive undercar repair and tire replacement sectors. As of September 28, 2024, the company had 1,272 Company-operated retail stores across 32 states and 49 Car-X franchised locations.
Financial Performance
For the six months ended September 28, 2024, Monro reported:
- Sales: $594.6 million, a decrease of 8.4% compared to the prior year
- Net Income: $11.5 million
- Operating Income: $26.4 million, down 33.4%
In the second quarter of fiscal 2025, the financial highlights included:
- Sales: $301.4 million, down 6.4%
- Gross Profit: $106.4 million, with a gross margin of 35.3%
- Operating, Selling, General and Administrative Expenses: $93.2 million
- Net Income: $5.6 million
Income Statement Summary
| Item | Q2 2025 ($ thousands) | Q2 2024 ($ thousands) | Change (%) |
|---|---|---|---|
| Sales | 301,391 | 322,091 | (6.4) |
| Cost of Sales | 195,014 | 207,118 | (5.8) |
| Gross Profit | 106,377 | 114,973 | (7.5) |
| Operating Income | 13,202 | 22,355 | (40.9) |
| Net Income | 5,647 | 12,872 | (55.0) |
Cash Flow Analysis
For the six months ended September 28, 2024, Monro reported:
- Cash Provided by Operating Activities: $88.2 million
- Cash Provided by Investing Activities: $4.6 million
- Cash Used for Financing Activities: $78.5 million
- Cash and Equivalents at End of Period: $20.9 million
Balance Sheet Highlights
As of September 28, 2024, the balance sheet reflected:
- Total Assets: $1,071 million
- Total Liabilities: $424 million
- Total Shareholders' Equity: $647 million
Operational Metrics
Monro’s operational metrics for the six months ended September 28, 2024, include:
- Comparable Store Sales Change: (5.8)%
- Number of Stores Closed: 16
- Average Diluted EPS: $0.37
Market Position and Strategy
Monro focuses on providing a wide range of services including:
- Automotive undercar repair
- Tire replacement
- Routine maintenance services
The company aims to enhance customer experience through competitive pricing and service quality, which is crucial for long-term profitability.
Debt and Financing
As of September 28, 2024, Monro had:
- Long-term Debt: Approximately $62 million
- Credit Facility: $600 million revolving credit facility with an accordion feature
Dividends
Monro declared dividends of $17.4 million for the six months ended September 28, 2024.
Future Outlook
Monro anticipates capital expenditures between $25 million and $35 million for fiscal 2025, focusing on upgrading facilities and systems.
How Monro, Inc. (MNRO) Makes Money
Revenue Streams
Monro, Inc. primarily generates revenue through the following categories:
- Tire sales
- Automotive maintenance services
- Brakes, steering, and other automotive parts sales
- Franchise royalties
Financial Performance Overview
As of September 28, 2024, Monro reported total revenues of $301.4 million for the quarter, compared to $322.1 million in the same quarter of the previous year, reflecting a decrease of 6.4%. For the six months ending September 28, 2024, revenues were $594.6 million, down 8.4% from $649.1 million the prior year.
| Revenue Source | Q2 2024 Revenue (thousands) | Q2 2023 Revenue (thousands) | Change (%) |
|---|---|---|---|
| Tires | $141,514 | $148,356 | -5.6% |
| Maintenance | $83,075 | $90,233 | -7.9% |
| Brakes | $40,643 | $46,241 | -12.2% |
| Steering | $24,981 | $25,998 | -3.9% |
| Batteries | $6,285 | $5,469 | 14.9% |
| Exhaust | $4,513 | $5,139 | -12.2% |
| Franchise Royalties | $380 | $655 | -42.0% |
| Total Revenue | $301,391 | $322,091 | -6.4% |
Cost Structure
Monro’s cost of sales for Q2 2024 was $195.0 million, compared to $207.1 million in Q2 2023, resulting in a gross profit of $106.4 million. This represents a gross margin of 35.3%, compared to 35.7% in the prior year.
| Cost Category | Q2 2024 Cost (thousands) | Q2 2023 Cost (thousands) | Change (%) |
|---|---|---|---|
| Cost of Sales | $195,014 | $207,118 | -5.8% |
| Gross Profit | $106,377 | $114,973 | -7.5% |
| Operating Expenses | $93,175 | $92,618 | 0.6% |
| Operating Income | $13,202 | $22,355 | -40.9% |
Net Income
For the quarter ended September 28, 2024, Monro reported a net income of $5.6 million, down from $12.9 million in the same quarter last year. The earnings per share (EPS) for this period was $0.18, compared to $0.40 in Q2 2023.
| Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Net Income (thousands) | $5,647 | $12,872 | -56.1% |
| EPS (basic) | $0.18 | $0.40 | -55.0% |
| EPS (diluted) | $0.18 | $0.40 | -55.0% |
Dividends
Monro declared dividends of $0.28 per common share for the quarter ended September 28, 2024, and $0.56 per common share for the six months ended September 28, 2024. Total dividends paid during the six months were $17.4 million.
Debt and Liquidity
As of September 28, 2024, Monro had $62.0 million outstanding under its credit facility, with no principal payments due within the next 12 months. The company expects to allocate capital expenditures between $25 million and $35 million for fiscal 2025.
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Article updated on 8 Nov 2024
Resources:
- Monro, Inc. (MNRO) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Monro, Inc. (MNRO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Monro, Inc. (MNRO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.