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Core Insights - Monro Muffler Brake reported progress in its fiscal third quarter of 2026, focusing on a performance improvement plan that includes marketing, store execution, and real estate monetization [4][6][22] Financial Performance - Third-quarter sales decreased by 4% to $293.4 million, primarily due to store closures, but comparable-store sales at continuing locations rose by 1.2% [6][17] - Gross margin expanded by 60 basis points year-over-year to 34.9%, attributed to lower material and occupancy costs, despite higher technician labor costs due to wage inflation [6][18] - Net income improved to $11.1 million (EPS $0.35) compared to $4.6 million (EPS $0.15) a year ago, although adjusted diluted EPS was slightly lower year-over-year [6][19] Marketing and Customer Acquisition - The company expanded its multi-channel digital media plan to over 340 additional store locations, aiming for profitable customer acquisition and activation [2][7] - Monro activated its CRM database to encourage existing customers to revisit stores, and expanded call center support to 114 additional locations [8][9] Store Optimization and Real Estate - Monro continues to monetize closed-store real estate, generating $17.3 million from exiting 32 leases and selling 20 owned locations in Q3, with fiscal year-to-date proceeds of $22.8 million [5][15] - The store optimization plan is expected to reduce total sales by approximately $45 million in fiscal 2026 while funding capital expenditures of $25–35 million [5][22] Operational Improvements - The company implemented an operational readiness assessment to enhance store performance and is focusing on accurate vehicle inspections through its ConfiDrive tool [10][7] - A field realignment followed the closure of 145 underperforming stores, aiming to improve the quality of district management and streamline operations [10] Future Outlook - Management expects year-over-year comparable-store sales growth for fiscal 2026 and anticipates a "tailwind" from higher expected consumer tax refunds [22][23] - The company plans to reinvest SG&A savings from closed stores into additional marketing to support growth at continuing stores [22]

分组1 - Monro Muffler Brake reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, but down from $0.19 per share a year ago, representing an earnings surprise of +33.33% [1] - The company posted revenues of $293.39 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 0.05%, and down from $305.77 million year-over-year [2] - Monro has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates two times in the same period [2] 分组2 - The stock has underperformed the market with a loss of about 0.1% since the beginning of the year, compared to the S&P 500's gain of 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is breakeven on $292.04 million in revenues, while for the current fiscal year, it is $0.55 on $1.18 billion in revenues [7] - The Consumer Services - Miscellaneous industry, to which Monro belongs, is currently in the top 41% of Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Sales decreased by 4% to $293.4 million in the third quarter, primarily due to the closure of 145 underperforming stores, partially offset by a 1.2% increase in comparable store sales from continuing locations [17][18] - Gross margin increased by 60 basis points year-over-year to 34.9%, driven by lower material costs and occupancy costs as a percentage of sales, despite higher technician labor costs due to wage inflation [18][20] - Operating income for the third quarter was $18.6 million, or 6.3% of sales, compared to $10 million, or 3.3% of sales in the prior year [19] - Net income was $11.1 million, compared to $4.6 million in the same period last year, with diluted earnings per share increasing to $0.35 from $0.15 [20][21] Business Line Data and Key Metrics Changes - The tire category saw a 5% increase, although tire units were down 1%, indicating outperformance against the industry [17] - Comparable store sales were down 2% in October, up 4% in November, and ended the quarter up 1% in December, marking the first time positive comps were delivered on a two-year stack in over two years [12][14] Market Data and Key Metrics Changes - The company reported strong sales momentum into fiscal January, with preliminary comparable store sales up almost 1% [15] - The company expects to deliver year-over-year comparable store sales growth for the full fiscal year, driven by the improvement plan and anticipated higher consumer tax refunds [23] Company Strategy and Development Direction - The company is focused on four key areas for performance improvement: customer acquisition, store-based customer experience, merchandising productivity, and real estate dispositions related to underperforming stores [4][12] - The company aims to optimize marketing investments and improve store performance while managing costs effectively [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to capitalize on positive industry trends and the operational improvements made during fiscal 2026 [25][68] - The company anticipates that a challenging winter will create consumer need and immediacy, positively impacting sales [62] Other Important Information - The company has exited 32 leases and sold 20 owned locations, generating proceeds of $17.3 million in the third quarter, with a total of $22.8 million in proceeds year-to-date [11][12] - The company continues to expect gross margins for the full year of fiscal 2026 to be consistent with fiscal 2025, despite baseline cost inflation and tariff-related cost increases [23][24] Q&A Session Summary Question: Impact of digital marketing on same-store sales - Management noted that increased digital marketing efforts have led to better performance in stores receiving additional support, contributing positively to same-store sales [28] Question: Details on gross margin changes - Management explained that gross margin improved due to lower material costs and occupancy costs, offset by higher technician labor costs due to wage inflation [34][36] Question: Potential benefits from recent winter storms - Management indicated that the recent winter storm is expected to drive incremental sales as consumers recognize the need for vehicle safety [62] Question: Contribution of traffic versus ticket in comps - Management reported that traffic was down mid-single digits, offset by a mid-single digit increase in repair orders, resulting in a total comp increase of 1.2% [47] Question: Future cash contributions from remaining store sales - Management stated that the remaining stores have a recorded minimum value of approximately $5 million, with expectations for higher contributions [50]

Financial Data and Key Metrics Changes - Sales decreased by 4% to $293.4 million in the third quarter, primarily due to the closure of 145 underperforming stores, partially offset by a 1.2% increase in comparable store sales from continuing locations [17][18] - Gross margin increased by 60 basis points year-over-year to 34.9%, driven by lower material costs and occupancy costs as a percentage of sales, despite higher technician labor costs due to wage inflation [18][20] - Operating income for the third quarter was $18.6 million, or 6.3% of sales, compared to $10 million, or 3.3% of sales in the prior year [19] - Net income was $11.1 million, compared to $4.6 million in the same period last year, with diluted earnings per share increasing to $0.35 from $0.15 [20][21] Business Line Data and Key Metrics Changes - The tire category saw a 5% increase, although tire units were down 1%, indicating outperformance against the industry [17] - Comparable store sales were down 2% in October, up 4% in November, and ended the quarter up 1% in December, marking the first time positive comps were delivered on a two-year stack in over two years [12][14] Market Data and Key Metrics Changes - The company experienced growth in comparable store sales in November and December, despite initial softness in consumer demand in October [12][14] - The company expects to deliver positive comparable store sales for the full fiscal year, supported by increased marketing spend and anticipated higher consumer tax refunds [15][23] Company Strategy and Development Direction - The company is focused on four key areas for performance improvement: customer acquisition, store experience, merchandising productivity, and real estate dispositions [4][16] - The closure of 145 underperforming stores is expected to generate positive cash flow and allow the company to concentrate on improving performance in continuing locations [12][16] - The company aims to optimize marketing investments and improve store performance as critical activities for the remainder of fiscal 2026 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to capitalize on positive industry trends and the operational improvements made during fiscal 2026 [25][68] - The company anticipates that a challenging winter and higher expected tax refunds will provide a tailwind for top-line trends [15][63] - Management acknowledged the potential for operating leverage benefits as sales improve, while also noting ongoing wage pressures and the need for further investments in initiatives [61] Other Important Information - The company generated $48 million in cash from operations during the first nine months of fiscal 2026, maintaining a strong financial position [22] - The company expects to spend $25 million to $35 million on capital expenditures in fiscal 2026 [24] Q&A Session Summary Question: Impact of digital marketing on same-store sales - Management noted that increased digital marketing has led to better performance in stores receiving additional support, contributing positively to comp store sales [28] Question: Details on gross margin changes - Management explained that gross margin improved due to lower material costs and occupancy costs, offset by higher technician labor costs due to wage inflation [34][36] Question: Potential benefits from recent winter storm - Management indicated that the storm created consumer demand for vehicle safety services, expecting incremental sales as a result [38] Question: Contribution of traffic versus ticket in comp sales - Management reported mid-single digit declines in traffic, offset by mid-single digit increases in repair orders, resulting in a total comp increase of 1.2% [47] Question: Future cash contributions from remaining store sales - Management stated that remaining owned stores are valued at approximately $5 million, with expectations for similar or higher cash contributions from sales [50]

Financial Data and Key Metrics Changes - Sales decreased by 4% to $293.4 million in the third quarter, primarily due to the closure of 145 underperforming stores, partially offset by a 1.2% increase in comparable store sales from continuing locations [16][17] - Gross margin increased by 60 basis points year-over-year to 34.9%, driven by lower material and occupancy costs, although higher technician labor costs due to wage inflation partially offset these gains [12][17] - Operating income for the third quarter was $18.6 million, or 6.3% of sales, compared to $10 million, or 3.3% of sales in the prior year [18] - Net income was $11.1 million, compared to $4.6 million in the same period last year, with diluted earnings per share increasing to $0.35 from $0.15 [19][20] Business Line Data and Key Metrics Changes - The tire category saw a 5% increase, although tire units were down 1%, indicating outperformance relative to the industry [16] - Comparable store sales were down 2% in October, up 4% in November, and ended the quarter up 1% in December, marking the first time in over two years that positive comps were delivered on a two-year stack [11][12] Market Data and Key Metrics Changes - The company reported strong sales momentum into fiscal January, with preliminary comparable store sales up almost 1% [13] - The Northeast region showed strength, while the West experienced some weakness in performance [46] Company Strategy and Development Direction - The company is focused on four key areas for performance improvement: customer acquisition, store-based customer experience, merchandising productivity, and real estate dispositions related to closed stores [4][5] - The closure of 145 underperforming stores is expected to generate positive cash flow and allow the company to focus on improving performance in continuing locations [11] - The company plans to reinvest savings from closed stores into additional marketing to support top-line growth [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to capitalize on positive industry trends and improve operations, driving profitability and shareholder returns [25][67] - The company expects to deliver year-over-year comparable store sales growth in fiscal 2026, despite anticipated reductions in total sales due to store optimization [23] - Management highlighted the potential benefits from upcoming tax refunds and a challenging winter, which could drive consumer demand for vehicle services [62] Other Important Information - The company generated $48 million in cash from operations during the first nine months of fiscal 2026, maintaining a strong financial position [20] - The company has exited 32 leases and sold 20 owned locations, resulting in proceeds of $17.3 million during the third quarter [10] Q&A Session Summary Question: Impact of digital marketing on same-store sales - Management confirmed that increased digital marketing efforts have positively impacted store performance, with stores receiving additional support performing better than before [27] Question: Rollout of digital marketing to remaining stores - Management indicated that the rollout will be disciplined based on operational readiness, with all stores expected to receive some form of marketing support [29] Question: Gross margin details for Q3 - Management detailed that gross margin improved due to lower material costs and occupancy costs, offset by higher technician labor costs due to wage inflation [34] Question: Potential benefits from winter storms - Management noted that challenging winter conditions could lead to increased consumer demand for vehicle services, positively impacting sales [37] Question: Comp ticket versus traffic contribution - Management reported that traffic was down mid-single digits, offset by a mid-single digit increase in repair orders, resulting in a total comp increase of 1.2% [46]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________ FORM 10-Q ____________________________________________________________ (Exact name of registrant as specified in its charter) ____________________________________________________________ New York 16-0838627 (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 27, 2025 OR ¨ ...

THIRD QUARTER FISCAL 2026 EARNINGS CALL JANUARY 28, 2026 Safe Harbor Statement and Non-GAAP Measures Certain statements in this presentation, other than statements of historical fact, including estimates, projections, statements related to our business plans and operating results are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Monro has identified some of these forward-looking statements with words such as "continue," "expect," "may," "believe," "fo ...

Exhibit 99.1 295 Woodcliff Drive, Suite 202, Fairport, New York 14450 CONTACT: Investors and Media: Felix Veksler Vice President, Investor Relations ir@monro.com FOR IMMEDIATE RELEASE MONRO, INC. ANNOUNCES THIRD QUARTER FISCAL 2026 FINANCIAL RESULTS FAIRPORT, N.Y. – January 28, 2026 – Monro, Inc. (Nasdaq: MNRO), a leading provider of automotive repair and tire services, today announced financial results for its third quarter ended December 27, 2025. Third Quarter Results Sales for the third quarter of the f ...

Core Insights - Monro, Inc. reported a 4.0% decrease in sales for the third quarter of fiscal 2026, totaling $293.4 million compared to $305.8 million in the same period of fiscal 2025, primarily due to the closure of 145 underperforming stores [2][9] - The company achieved a gross margin increase of 60 basis points year-over-year, reaching 34.9%, driven by lower material and occupancy costs, despite higher technician labor costs due to wage inflation [4][11] - Net income for the third quarter of fiscal 2026 was $11.1 million, a significant increase of 143.1% from $4.6 million in the prior year, with diluted earnings per share rising to $0.35 from $0.15 [9][25] Third Quarter Results - Sales decreased by 4.0% to $293.4 million from $305.8 million in the prior year [2] - Comparable store sales showed a mixed performance, with a 1.2% increase from continuing locations, while adjusted comparable store sales decreased by 0.8% in the prior year [2][3] - Operating income increased to $18.6 million, or 6.3% of sales, compared to $10.0 million, or 3.3% of sales in the prior year [6] Operating Expenses - Total operating expenses for the third quarter were $83.8 million, representing 28.6% of sales, down from $94.8 million or 31.0% of sales in the prior year [5] - The decrease in operating expenses was attributed to $14.0 million in net gains from closed store real estate dispositions and $7.3 million in lower costs from store closures [5] Income and Earnings - Adjusted operating income for the third quarter was $10.3 million, or 3.5% of sales, compared to $11.7 million, or 3.8% of sales in the prior year [6] - The effective tax rate for the third quarter was 23.6%, up from 21.2% in the prior year, primarily due to an income tax benefit in the previous year [8] Inventory and Cash Flow - The company reduced inventory levels by over $7 million in the third quarter, achieving a total reduction of more than $28 million, or 16%, since March [11] - Operating cash flow for the first nine months of fiscal 2026 was $48 million, with cash and equivalents of $4.9 million as of December 27, 2025 [13] Future Outlook - Preliminary comparable store sales for January 2026 are up almost 1%, and the company expects positive trends to continue, supported by increased marketing spend and anticipated consumer tax refunds [12] - Monro is not providing specific financial guidance for fiscal 2026 at this time but will discuss expectations during the upcoming earnings conference call [17]