Monro (MNRO) UBS Global Consumer and Retail Conference summary

Company evolution and operational foundation

• Expanded from a regional business to a national platform with up to 1,300 locations through acquisitions and M&A, now operating around 1,100 locations.

• Shifted from limited services to a broad range of automotive repair and tire services, with tires now comprising 50% of business.

• Focused on integrating and standardizing operations, technology, and processes across all stores over the past five years.

• Implemented foundational technology upgrades, including digital scheduling and inspection tools, to support scalable growth.

• Current focus is leveraging these tools to enhance guest experience and prepare for renewed unit growth.

Industry landscape and consumer trends

• Auto aftermarket remains highly fragmented, with top ten players holding only about 15% of 120,000 U.S. service locations.

• Aging vehicles and increased vehicle complexity drive durable demand for aftermarket services, favoring the do-it-for-me segment.

• Market competition includes national chains, dealerships, club stores, mass merchandisers, and online sellers.

• Consumer behavior shows a K-shaped recovery, with lower-income customers trading down to lower-tier tires and higher-income customers investing in bundled services.

• Persistent inflation and post-COVID dynamics have reinforced trading down to lower-priced tire brands, impacting tier one and two volumes.

Strategic responses and portfolio optimization

• Closed 145 underperforming stores based on performance, demographics, and lease terms, generating over $20 million in proceeds.

• Store closures allowed reinvestment in marketing and capital allocation, with ongoing portfolio reviews tied to lease renewals.

• Focused on driving consistent comp store sales growth, achieving four consecutive quarters of growth and first two-year stack growth in years.

• Positioned for future M&A and unit growth, especially in untapped states like Texas, Arizona, and Colorado, supported by a strong balance sheet.