Monro (MNRO) Investor presentation summary

Company overview and industry position

• Operates over 1,100 company-owned stores and 48 franchised locations across 32 states, with fiscal 2025 sales of $1.2 billion.

• Expanded through four acquisitions in five years, adding 52 locations and $78M in revenue.

• Focuses on the Northeastern U.S. but is expanding in Southern and Western markets.

• Competes in the $351B Do-It-For-Me segment of the $435B U.S. automotive aftermarket, which is shifting from DIY due to increasing vehicle complexity.

• Industry remains fragmented, offering consolidation opportunities.

Financial and operational performance

• Achieved fourth consecutive quarter of positive comparable store sales, with Q3 FY26 comps up 1.2% on a two-year stack.

• Q3 FY26 gross margin expanded by 60 basis points to 34.9%, despite a 4% sales decline year-over-year.

• Adjusted diluted EPS for Q3 FY26 was $0.16, down from $0.19 in Q3 FY25.

• Reduced inventory by over $7M sequentially and reinvested SG&A savings from closed stores into marketing.

• Product category performance: tires +5%, shocks +7%, brakes -1%, service -2%, alignments -13%, batteries -16%.

Strategic initiatives and shareholder value drivers

• Enhanced marketing reach to 340+ additional stores and expanded CRM-driven customer reactivation.

• Improved merchandising productivity and managed tariff risks, focusing on tire assortment and supplier relationships.

• Advanced customer experience with digital inspection tools and field organization improvements.

• Closed 145 underperforming stores, exited 57 leases, and sold 25 locations, generating $22.8M in proceeds YTD.