分组1 - Monro Muffler Brake reported quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.28 per share, and down from $0.39 per share a year ago, representing an earnings surprise of -32.14% [1] - The company posted revenues of $305.77 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.52%, and down from $317.65 million year-over-year [2] - Monro has surpassed consensus EPS estimates only once in the last four quarters, and has also topped consensus revenue estimates just once during the same period [2] 分组2 - The stock has underperformed the market, losing about 11.3% since the beginning of the year compared to the S&P 500's gain of 3.2% [3] - The current consensus EPS estimate for the coming quarter is $0.19 on revenues of $307.69 million, and for the current fiscal year, it is $0.84 on revenues of $1.21 billion [7] - The Zacks Industry Rank for Consumer Services - Miscellaneous is currently in the bottom 35% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Financial Data and Key Metrics Changes - Comparable store sales percentage change improved by 500 basis points sequentially from Q2 of fiscal 2025, with sales of $305.8 million, a decrease of 3.7% year over year, primarily driven by a 1.9% decline in comparable store sales unadjusted for days [13][15] - Gross margin decreased by 120 basis points compared to the prior year, primarily due to higher material costs and increased self-funded promotions [15][16] - Operating income for Q3 declined to $10 million or 3.3% of sales, compared to $21.4 million or 6.7% of sales in the prior year [16] - Net income was $4.6 million, down from $12.2 million in the same period last year, with diluted earnings per share at $0.15 compared to $0.38 [17] Business Line Data and Key Metrics Changes - Tire units were up low single digits in Q3, driven by mid single-digit growth in units during December [14] - Year-over-year growth in service categories, including batteries, alignment, and front-end shocks, was noted, while brake category performance still requires improvement [9][12] Market Data and Key Metrics Changes - Preliminary fiscal January comparable store sales were down 1%, driven by weakness in tire category sales due to extreme weather, which resulted in temporary store closures [10][11] - The company gained higher market share in higher margin tiers during the quarter [14] Company Strategy and Development Direction - The company remains focused on sales and unit growth while making necessary price and promotional investments, even if it pressures profitability in the near term [10][12] - Initiatives such as the Comfort Drive digital courtesy inspection process and oil change offers are expected to drive improvements in store traffic and service category performance [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in restoring gross margins back to pre-COVID levels with double-digit operating margins over the long term as top-line growth resumes [12][21] - The company anticipates leveraging initiatives to achieve Q4 objectives, including improving store traffic trends and accelerating performance in key service categories [11][20] Other Important Information - The company generated $103 million of cash from operations, with a net bank debt of $49 million and total liquidity of $521 million [18][19] - Capital expenditures are expected to be between $25 million to $30 million for fiscal 2025 [20] Q&A Session Summary Question: Will gross profit comps continue to improve or will there be a mix deterioration? - Management indicated that gross margin declined 120 basis points due to material costs and self-funded promotions, and similar pressure is expected going forward [24] Question: Was weather a net benefit or drag in Q3? - Management stated that Q3 was neutral regarding weather impact, but extreme weather in January is expected to benefit future performance [25][26] Question: What benefits are seen from the digital courtesy inspection? - Management noted that while traffic was down, average ticket size increased, driven by service categories, indicating strong attachment rates [32][34] Question: What is the current mix of Tier 3 tires? - The mix is in the high 20s, with a focus on steering customers towards Tier 3 rather than Tier 4 [44][47] Question: What is the status of ATD receivables? - The company still has $6.8 million of receivables owed from ATD, with no reserves against that amount, expecting full collection [56] Question: How did regional performance vary? - The South performed stronger than the consolidated comp, while the Midwest, Northeast, and West were weaker [57] Question: What are the building blocks to restore gross margins to pre-COVID levels? - Management highlighted the need for reduced material cost pressures and top-line growth to achieve margin restoration [71]

THIRD QUARTER FISCAL 2025 EARNINGS CALL JANUARY 29, 2025 Safe Harbor Statement and Non-GAAP Measures In addition to including references to diluted earnings per share ("EPS"), which is a generally accepted accounting principals ("GAAP") measure, this presentation includes references to adjusted diluted earnings per share, which is a non-GAAP financial measure. Monro has included a reconciliation from adjusted diluted EPS to its most directly comparable GAAP measure, diluted EPS in the appendix to this prese ...

Financial Performance - For Q3 2025, diluted EPS was $0.15, a decrease of 60.5% compared to $0.38 in the prior year, while adjusted diluted EPS was $0.19, down 51.3% from $0.39 [75]. - Sales for the three months ended December 28, 2024, were $305.8 million, a decrease of 3.7% from $317.7 million in the prior year, with comparable store sales down 1.9% [77][82]. - Operating income for Q3 2025 was $10.0 million, a decline of 53.4% from $21.4 million in the same period last year [79]. - Gross profit for the three months ended December 28, 2024, was $104.8 million, representing 34.3% of sales, down from 35.5% in the prior year [90]. - Adjusted net income for the three months ended December 28, 2024, was $5.8 million, compared to $12.5 million for the same period last year [99]. Expenses and Costs - OSG&A expenses increased by 3.9% to $94.8 million, accounting for 31.0% of sales, compared to 28.7% in the prior year [92]. - OSG&A expenses increased by $3.5 million for the three months ended December 28, 2024, driven primarily by a $3.6 million increase from comparable stores [93]. - Net interest expense decreased to $4.2 million for the three months ended December 28, 2024, down from $5.0 million in the prior year, representing a decrease from 1.6% to 1.4% of sales [94]. - The effective income tax rate for the three months ended December 28, 2024, was 21.2%, down from 25.8% in the prior year [96]. Cash Flow and Financing - Cash provided by operating activities for the nine months ended December 28, 2024, was $103.0 million, down from $130.5 million in the prior year [114]. - Cash used for financing activities for the nine months ended December 28, 2024, was $99.5 million, a decrease from $111.2 million for the same period in 2023, primarily due to a reduction in payments on the Credit Facility [118][119]. - Payments on the Credit Facility for the nine months ended December 28, 2024, totaled $42.8 million, compared to $11.0 million for the same period in 2023 [118][119]. - The company repurchased $44.0 million in common stock during the nine months ended December 23, 2023 [119]. - As of December 28, 2024, the company had a working capital deficit of $234.0 million, an increase of $32.1 million from the previous period [109]. - Cash and equivalents at the end of the period were $10.2 million, with $510.6 million available under the Credit Facility [110]. Business Operations and Strategy - The company experienced a 30% increase in battery sales and a 13% increase in alignment services during Q3 2025, partially offsetting declines in other categories [84][87]. - The total number of company-operated retail stores decreased from 1,298 to 1,263 over the three months ended December 28, 2024 [89]. - The company anticipates that comparable store sales growth will significantly influence total sales growth moving forward [81]. - The company is actively seeking remaining earnout payments of $6.8 million from American Tire Distributors, which filed for bankruptcy protection [73]. - The company plans to continue its growth strategy, including potential store expansions and renovations, which may involve related costs [126]. Economic Conditions and Risks - Economic conditions, including higher inflation and constrained labor availability, may lead to a potential economic slowdown impacting demand for products and services [74]. - The company is dependent on third-party vendors for certain inventory, which poses risks related to vendor performance and international trade [126]. - Forward-looking statements include expectations regarding sales, gross profit margin, and capital expenditures, which are subject to various risks and uncertainties [125][126]. Capital Expenditures - Capital expenditures for fiscal 2025 are expected to be between $25 million and $30 million [106]. Debt and Interest Rates - As of December 28, 2024, the carrying amount of debt financing approximated a fair value of $59.3 million, down from $102.0 million as of March 30, 2024 [131]. - The cash flow exposure on floating rate debt could result in annual interest expense fluctuations of approximately $0.6 million based on the debt position at December 28, 2024, with a 100 basis points change in SOFR [130]. - The company has no debt financing at fixed interest rates as of December 28, 2024, which could be affected by changes in market interest rates [130]. - The company evaluates its critical accounting estimates on an ongoing basis, with no material changes reported since the last Form 10-K [123].

Financial Performance - Sales for the third quarter of fiscal 2025 decreased 3.7% to $305.8 million, compared to $317.7 million in the same period of fiscal 2024[2] - Net income for the third quarter of fiscal 2025 was $4.6 million, down 62.3% from $12.2 million in the same period of the prior year[9] - Diluted earnings per share for the third quarter of fiscal 2025 was $0.15, compared to $0.38 in the third quarter of fiscal 2024, reflecting a 60.5% decrease[9] - Operating income for the third quarter was $10.0 million, or 3.3% of sales, down from $21.4 million, or 6.7% of sales in the prior year[6] - Comparable store sales for the first nine months decreased 5.6%, with total sales down 6.9% to $900.3 million from $966.7 million in the prior year[12] - Net income for the nine months was $16,093,000, a decrease from $33,871,000 in the previous year, with adjusted net income at $17,865,000 compared to $35,726,000[39] Cost and Expenses - Gross margin decreased 120 basis points year-over-year, primarily due to higher material costs and increased self-funded promotions[5] - Total operating expenses for the third quarter were $94.8 million, or 31.0% of sales, compared to $91.3 million, or 28.7% of sales in the prior year[6] - Transition costs related to back-office optimization amounted to $527,000 for the quarter and $1,677,000 for the nine months[35][39] - Store closing costs were $437,000 for the quarter and $1,149,000 for the nine months, reflecting ongoing restructuring efforts[35][39] Store Operations - The company closed 9 stores during the third quarter, ending with 1,263 company-operated stores and 48 franchised locations[10] Legal and Asset Management - The company reported a litigation reserve of $650,000 for the quarter, indicating potential legal challenges[35] - The net loss on the sale of wholesale tire and distribution assets was recorded as $304,000 for the nine months, impacting overall profitability[39] - The company recognized a net gain of $73,000 from the sale of corporate headquarters for the quarter, contributing positively to adjusted net income[35] - Total assets as of December 2024 were $1,669,292,000, compared to $1,692,814,000 in the previous year, indicating a slight decrease in asset base[31] Earnings Adjustments - For the quarter ended December 2024, diluted EPS decreased to $0.15 from $0.38 in the same quarter of 2023, with adjusted diluted EPS at $0.19 compared to $0.39[33] - Net income for the quarter was $4,583,000, down from $12,170,000 in the prior year, resulting in adjusted net income of $5,791,000 compared to $12,546,000[35] - For the nine months ended December 2024, diluted EPS was $0.52, down from $1.05 in 2023, with adjusted diluted EPS at $0.57 compared to $1.11[37]

Core Viewpoint - Monro Muffler Brake (MNRO) is anticipated to report a year-over-year decline in earnings due to lower revenues in its upcoming quarterly results for December 2024 [1] Earnings Expectations - The consensus estimate for Monro's quarterly earnings is $0.28 per share, reflecting a year-over-year decrease of 28.2% [3] - Expected revenues are projected at $310.48 million, which is a decline of 2.3% compared to the same quarter last year [3] Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 0.85%, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Monro is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.20% [10][11] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8] - Monro currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat despite the positive Earnings ESP [11] Historical Performance - In the last reported quarter, Monro was expected to post earnings of $0.25 per share but only achieved $0.17, resulting in a surprise of -32% [12] - The company has not beaten consensus EPS estimates in any of the last four quarters [13] Conclusion - Monro does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors when making decisions regarding this stock ahead of its earnings release [16]

Exhibit 99.1 295 Woodcliff Drive, Suite 202, Fairport, NY 14450 CONTACT: Investors and Media: Felix Veksler Senior Director, Investor Relations ir@monro.com FOR IMMEDIATE RELEASE MONRO, INC. ANNOUNCES SECOND QUARTER FISCAL 2025 FINANCIAL RESULTS • Drove 410 Basis Point Sequential Improvement in Year-over-Year Comparable Store Sales Percentage Change from the First Quarter of Fiscal 2025 • Generated Cash from Operating Activities of $88 Million for the First Half of Fiscal 2025 • Distributed Second Quarter F ...

Financial Data and Key Metrics - Sales decreased by 10.3% YoY to $293.2 million in Q1, primarily driven by a 9.9% decline in comparable store sales [8] - Gross margin increased by 220 basis points YoY, driven by lower technician labor costs and lower material costs, partially offset by higher fixed occupancy costs [9] - Operating income declined to $13.2 million (4.5% of sales) compared to $17.3 million (5.3% of sales) in the prior year [9] - Net income was $5.9 million, down from $8.8 million YoY, with diluted EPS at $0.19 compared to $0.28 in the prior year [10] - Adjusted diluted EPS (non-GAAP) was $0.22, compared to $0.31 in Q1 of fiscal 2024 [10] Business Line Performance - Tire units were down 5% in Q1 but returned to mid-single-digit growth in June, with improved market share and maintained share in higher-margin tiers [8] - Battery units and sales dollars grew in June, driven by the ConfiDrive digital inspection process and service coupon initiatives [5] - Service categories, particularly higher-margin ones, remain underperforming despite some improvement [7][17] Market Performance - Comparable store sales trends improved as the quarter progressed, with comps down 13% in April, 11% in May, and 5% in June [8] - The 300 smaller underperforming stores showed comp store sales consistent with the overall company comp [8] Strategy and Industry Competition - The company is focusing on improving store traffic through oil change services and tire unit growth, while optimizing labor efficiency and cost control [6] - Monro is leveraging manufacturer-funded promotions to drive tire sales and improve profitability [4][19] - The company aims to restore gross margins to pre-COVID levels and achieve double-digit operating margins over the long term [7] Management Commentary on Operating Environment and Outlook - Management noted that the consumer environment remains challenging, but initiatives are driving improvement in topline results [4][7] - The company expects to deliver higher profitability in Q2 through continued gross margin expansion and cost control [12] - Full-year fiscal 2025 expectations include gross margin expansion, flat fixed occupancy costs, and at least $120 million in operating cash flow [12] Other Important Information - The company generated $26 million in cash from operations in Q1, reducing the cash conversion cycle by 15 days YoY [11] - Net bank debt stood at $93 million, with a net bank debt-to-EBITDA ratio of 0.7x and total liquidity of $477 million [11] - Capital expenditures for fiscal 2025 are expected to be between $25 million and $35 million [13] Q&A Session Summary Question: What drove the significant improvement in sales, particularly in June? - The improvement was driven by promotional activities in the tire category, supported by manufacturer-funded promotions, which led to unit growth in June [15][16][19] Question: How did price versus unit or traffic impact Q1 comps? - Price was slightly up, but traffic was significantly down, with June showing flat units and ticket in the tire category [23] Question: What is the strategy for oil price promotions? - The strategy is managed discounting, focusing on providing value to consumers and ensuring quick service turnaround [24] Question: How did gross margin performance compare to internal expectations? - Gross margin exceeded expectations, driven by strong technician productivity and lower labor and material costs [28][29] Question: What are the gross margin expectations for Q2? - The company expects similar gross margin results on a rate basis, with a target of 37% for Q2 [30] Question: What drove the weaker July comps compared to June? - The weaker comps were attributed to a soft comparison period, with no significant underlying issues [32]

200 Holleder Parkway, Rochester, New York 14615 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (585) 647-6400 Not Applicable (Former name or former address, if changed since last report) | --- | --- | --- | --- | |--------|----------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | New | York | | | | | | | | | (State | | | | | of | Incorporation) | | | Pursuant to the requirements of the Securities Exchang ...

PART I [Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) Forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from projections - Forward-looking statements are subject to risks, uncertainties, and other important factors that could cause actual results to differ materially from those expressed[11](index=11&type=chunk) - Key risk categories include competitive services and pricing, economic conditions and geopolitical uncertainty, advances in automotive technologies (including EVs), dependence on third-party vendors, debt obligations, cash needs, anticipated sales and profit margins, income tax liabilities, critical accounting policies, industry regulation, litigation, business interruptions, cybersecurity, acquisitions, store operations, dividend payments, brand protection, human capital, and climate change impacts[12](index=12&type=chunk) [Item 1. Business](index=5&type=section&id=Item%201.%20Business) Monro, Inc. operates 1,288 retail tire and automotive repair stores nationwide, offering services and focusing on customer experience and growth - Monro, Inc. is a leading nationwide operator of retail tire and automotive repair stores, offering replacement tires, tire-related services, undercar repair, and routine maintenance[16](index=16&type=chunk) Company-operated Store Brands as of March 30, 2024 | Company-operated Store Brands | Stores | | :------------------------------ | :----- | | Monro Auto Service and Tire Centers | 360 | | Tire Choice Auto Service Centers | 349 | | Mr. Tire Auto Service Centers | 317 | | Car-X Tire & Auto | 72 | | Tire Warehouse Tires For Less | 55 | | Ken Towery's Tire & Auto Care | 34 | | Mountain View Tire & Auto Service | 30 | | Tire Barn Warehouse | 27 | | Other | 44 | | Total | 1,288 | - The company serviced approximately **4.7 million** vehicles in fiscal 2024[17](index=17&type=chunk) - Monro operates in one segment, encompassing retail and commercial locations, and maintains its corporate headquarters in Rochester, New York[23](index=23&type=chunk)[24](index=24&type=chunk) [General](index=5&type=section&id=General) This section provides a general overview of Monro's business operations and market position [Business Strategy](index=6&type=section&id=Business%20Strategy) This section outlines Monro's strategic initiatives for enhancing customer experience, optimizing offerings, and driving growth [Purchasing and Distribution](index=7&type=section&id=Purchasing%20and%20Distribution) This section describes Monro's processes for acquiring and distributing tires and automotive parts to its store network [Human Capital](index=7&type=section&id=Human%20Capital) This section details Monro's approach to managing its workforce, including recruitment, training, and employee relations [Competition](index=9&type=section&id=Competition) This section analyzes the competitive landscape within the automotive repair and tire industry where Monro operates [Regulation](index=9&type=section&id=Regulation) This section addresses the various governmental regulations and compliance requirements affecting Monro's business operations [Seasonality](index=9&type=section&id=Seasonality) This section discusses the seasonal fluctuations in demand for Monro's products and services throughout the year [Available Information](index=9&type=section&id=Available%20Information) This section specifies where public information about Monro, Inc. can be accessed by investors and the public [Item 1A. Risk Factors](index=10&type=section&id=Item%201A.%20Risk%20Factors) This section details significant risks, including competition, economic sensitivity, EV adoption, vendor reliance, debt compliance, and cybersecurity, that could materially affect Monro's operations - The automotive repair industry is highly competitive and fragmented, with competition based on price, reputation, name awareness, customer service, and store location[65](index=65&type=chunk) - Economic conditions, including inflation and interest rates, impact consumer spending, potentially leading to reduced demand for services or 'trading down' to lower-priced options[66](index=66&type=chunk) - Advances in electric vehicle technology and longer-lasting automotive parts may decrease demand for traditional services like oil changes and exhaust repairs[70](index=70&type=chunk)[71](index=71&type=chunk) - The company relies on key vendor relationships, particularly with American Tire Distributors (ATD), for most tire inventory, and changes in U.S. trade policies (e.g., tariffs) could increase costs[72](index=72&type=chunk)[73](index=73&type=chunk)[79](index=79&type=chunk) - Failure to generate sufficient cash flows or comply with debt covenants (e.g., interest coverage ratio, adjusted debt to EBITDAR) could impair liquidity, growth, and dividend payments[80](index=80&type=chunk)[81](index=81&type=chunk)[85](index=85&type=chunk) - Cybersecurity threats, data breaches, and the inability to attract and retain skilled personnel are also significant operational risks[96](index=96&type=chunk)[115](index=115&type=chunk) [Item 1B. Unresolved Staff Comments](index=18&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments from the SEC - No unresolved staff comments[123](index=123&type=chunk) [Item 1C. Cybersecurity](index=18&type=section&id=Item%201C.%20Cybersecurity) Monro maintains a comprehensive cybersecurity program aligned with NIST standards, with Board oversight and CISO/CLO operational responsibility - Monro's cybersecurity program is aligned with NIST Cybersecurity Framework, prioritizing prevention, protection, detection, assessment, and response to threats[124](index=124&type=chunk) - Key controls include quarterly cybersecurity awareness training, monthly phishing simulations, a 24/7 dedicated security operations team, intrusion detection/prevention, vulnerability management, and multi-factor authentication[125](index=125&type=chunk) - The Board of Directors delegates cybersecurity oversight to the Audit Committee, which receives quarterly presentations from the CISO[130](index=130&type=chunk)[132](index=132&type=chunk) - The CISO and Chief Legal Officer (CLO) have primary operational responsibility for assessing and managing cybersecurity risks, supported by a well-defined Incident Response Plan (IRP)[128](index=128&type=chunk)[131](index=131&type=chunk) [Item 2. Properties](index=21&type=section&id=Item%202.%20Properties) As of March 30, 2024, Monro operated **1,288** stores, mostly leased, with its corporate headquarters held for sale pending relocation Company-operated Stores and Other Properties as of March 30, 2024 | | Stores | | :------------------------ | :----- | | Owned | 330 | | Leased | 902 | | Owned buildings on leased land | 56 | | Total | 1,288 | - The company's corporate headquarters building in Rochester, New York, was classified as held for sale as of March 30, 2024, with a carrying value of **$5.9 million**, as the company plans to relocate[138](index=138&type=chunk) - Approximately **59%** of store leases (**569** stores) expire after March 2034, considering all renewal options[135](index=135&type=chunk) [Item 3. Legal Proceedings](index=22&type=section&id=Item%203.%20Legal%20Proceedings) Monro is involved in various legal proceedings, which management believes are not materially adverse, though outcomes are inherently uncertain - Monro is a party to various claims and legal proceedings incidental to its business, but management does not believe they will have a material adverse effect on financial condition or results of operations[139](index=139&type=chunk) - Litigation is subject to inherent uncertainties, and unfavorable rulings could potentially have a material adverse impact[139](index=139&type=chunk) [Item 4. Mine Safety Disclosures](index=22&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Monro, Inc - Not applicable[140](index=140&type=chunk) PART II [Item 5. Market for the Company's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=23&type=section&id=Item%205.%20Market%20for%20the%20Company%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Monro's common stock is listed on Nasdaq, with an authorized share repurchase program and dividends subject to Board discretion - Monro's common stock is listed on the Nasdaq Stock Market under the symbol '**MNRO**'[143](index=143&type=chunk) - As of May 17, 2024, **29,916,345** shares of common stock were outstanding[5](index=5&type=chunk) Share Repurchase Program Activity (as of March 30, 2024) | Program Authorization | Repurchased Shares | Total Investment | Remaining Value | | :-------------------- | :----------------- | :--------------- | :-------------- | | $150 million | 3.7 million | $140.9 million | $9.1 million | Dividends Declared Per Common Share | Fiscal Year | Dividend Per Share | | :---------- | :----------------- | | 2024 | $1.12 | | 2023 | $1.12 | | 2022 | $1.02 | - An agreement was made in May 2023 to reclassify the equity capital structure to eliminate the Class C Preferred Stock, with mandatory conversion expected by **2026**[143](index=143&type=chunk)[397](index=397&type=chunk) [Market Information](index=23&type=section&id=Market%20Information) This section provides details on the trading market for Monro's common stock and related market data [Share Repurchase Activity](index=23&type=section&id=Share%20Repurchase%20Activity) This section outlines the company's share repurchase program and recent activity regarding equity buybacks [Holders of Record](index=23&type=section&id=Holders%20of%20Record) This section reports the number of record holders for Monro's common stock as of a specified date [Dividends](index=23&type=section&id=Dividends) This section details the company's dividend policy and historical dividend payments to common shareholders [Stock Performance Graph](index=24&type=section&id=Stock%20Performance%20Graph) This section presents a graphical comparison of Monro's cumulative total return against market indices [Item 6. [Reserved]](index=24&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information - Item 6 is reserved[150](index=150&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Monro focuses on strategic investments for growth, with fiscal 2024 sales and EPS decreasing, while leveraging operating cash flow and its Credit Facility - Monro's strategy focuses on improving guest experience, enhancing customer-centric engagement, optimizing product and service offerings, and accelerating productivity and team engagement[151](index=151&type=chunk) - The company completed the divestiture of its wholesale tire operations and internal tire distribution operations to American Tire Distributors, Inc. (ATD) in June 2022 for **$102 million**[153](index=153&type=chunk) - The U.S. economy experienced high inflation and increased interest rates in fiscal 2023 and 2024, potentially leading to an economic slowdown and impacting demand for products and services[154](index=154&type=chunk) Fiscal 2024 Financial Summary | Metric | 2024 ($M) | 2023 ($M) | % Change | | :--------------------- | :-------- | :-------- | :------- | | Sales | 1,276.8 | 1,325.4 | (3.7)% | | Operating Income | 71.4 | 79.8 | (10.4)% | | Net Income | 37.6 | 39.0 | (3.6)% | | Diluted EPS | $1.18 | $1.20 | (1.7)% | | Adjusted Diluted EPS | $1.33 | $1.36 | (2.2)% | - Sales decreased primarily due to closed stores and a **2.0%** decrease in comparable store sales (**3.9%** adjusted for days), driven by low-to-middle income consumers trading down to lower-margin tires and milder weather impacting tire sales[161](index=161&type=chunk)[164](index=164&type=chunk) - Gross profit as a percentage of sales increased by **100 basis points** in 2024, mainly due to tire mix improvement and opportunistic pricing actions, partially offset by increased retail occupancy and technician labor costs[169](index=169&type=chunk)[170](index=170&type=chunk) - Net interest expense decreased by **$3.2 million** in 2024 due to lower weighted average debt outstanding, despite an increase in the weighted average interest rate[173](index=173&type=chunk) - The effective income tax rate decreased to **27.6%** in 2024 from **31.7%** in 2023, primarily due to discrete tax impacts from the divestiture and revaluation of deferred tax balances in 2023[174](index=174&type=chunk) - Monro expects to generate positive operating cash flow and plans to use it for business operations, acquisitions, debt reduction, and dividend payments[181](index=181&type=chunk) Cash Flow Summary (Fiscal Years Ended March) | (thousands) | 2024 | 2023 | 2022 | | :------------------------------ | :-------- | :-------- | :-------- | | Cash provided by operating activities | $125,196 | $215,016 | $173,759 | | Cash (used for) provided by investing activities | $(1,956) | $26,546 | $(109,801) | | Cash used for financing activities | $(121,563) | $(244,626) | $(85,970) | | Increase (decrease) in cash and equivalents | $1,677 | $(3,064) | $(22,012) | | Cash and equivalents at end of period | $6,561 | $4,884 | $7,948 | - On May 23, 2024, Monro entered into a Fourth Amendment to its Credit Facility, providing additional flexibility by reducing the minimum interest coverage ratio and modifying the EBITDAR definition for a 'Covenant Relief Period' through Q4 fiscal 2026, while increasing the interest rate spread by **25 basis points** and imposing restrictions on share repurchases during this period[152](index=152&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk) [Executive Overview](index=25&type=section&id=Executive%20Overview) This section provides a high-level summary of Monro's financial performance and strategic priorities for the fiscal year [Recent Developments](index=25&type=section&id=Recent%20Developments) This section highlights significant events and changes that have impacted Monro's business recently [Economic Conditions](index=25&type=section&id=Economic%20Conditions) This section discusses the prevailing economic environment and its potential effects on Monro's operations and consumer demand [Financial Summary](index=25&type=section&id=Financial%20Summary) This section presents a concise overview of Monro's key financial results for the reporting period [Analysis of Results of Operations](index=26&type=section&id=Analysis%20of%20Results%20of%20Operations) This section provides a detailed discussion of Monro's revenues, expenses, and profitability trends [Other Performance Factors](index=28&type=section&id=Other%20Performance%20Factors) This section examines additional factors influencing Monro's operational and financial performance [Non-GAAP Financial Measures](index=28&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP financial measures used by Monro to provide additional insights [Analysis of Financial Condition](index=30&type=section&id=Analysis%20of%20Financial%20Condition) This section analyzes Monro's balance sheet, liquidity, and capital resources to assess its financial health [Critical Accounting Estimates](index=33&type=section&id=Critical%20Accounting%20Estimates) This section discusses accounting estimates that require significant judgment and could materially impact financial results [Accounting Standards](index=34&type=section&id=Accounting%20Standards) This section outlines the new and recently adopted accounting standards relevant to Monro's financial reporting [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=34&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Monro is exposed to market risk from interest rate changes on its floating-rate debt, with a **100 basis point** SOFR change impacting annual interest expense by **$1.0 million** - Monro is exposed to market risk from potential changes in interest rates, specifically on its floating-rate debt[220](index=220&type=chunk) - As of March 30, 2024, a **100 basis point** change in SOFR would result in approximately **$1.0 million** in annual interest expense fluctuations[220](index=220&type=chunk) - Long-term debt had a carrying amount and fair value of **$102.0 million** as of March 30, 2024[220](index=220&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=35&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Monro's audited consolidated financial statements for fiscal years 2022-2024, including core statements and notes, along with management and auditor reports - Management assessed the effectiveness of the Company's internal control over financial reporting as of March 30, 2024, and determined it was effective[227](index=227&type=chunk) - PricewaterhouseCoopers LLP issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting as of March 30, 2024[233](index=233&type=chunk) - A critical audit matter identified was the evaluation of long-lived assets for impairment for certain asset groups, due to significant management judgment in developing recoverability estimates and high auditor judgment in evaluating assumptions[240](index=240&type=chunk)[241](index=241&type=chunk) Consolidated Balance Sheet Highlights (thousands) | Metric | March 30, 2024 | March 25, 2023 | | :------------------------- | :------------- | :------------- | | Total Current Assets | $253,289 | $258,467 | | Property and equipment, net | $280,154 | $304,989 | | Goodwill | $736,435 | $736,457 | | Total Assets | $1,692,814 | $1,776,877 | | Total Current Liabilities | $455,156 | $449,177 | | Long-term debt | $102,000 | $105,000 | | Total Liabilities | $1,036,039 | $1,081,955 | | Total Shareholders' Equity | $656,775 | $694,922 | Consolidated Statements of Income and Comprehensive Income Highlights (thousands, except per share data) | Metric | 2024 | 2023 | 2022 | | :------------------------- | :---------- | :---------- | :---------- | | Sales | $1,276,789 | $1,325,382 | $1,359,328 | | Gross profit | $452,103 | $456,175 | $481,836 | | Operating income | $71,425 | $79,750 | $101,298 | | Net income | $37,571 | $39,048 | $61,568 | | Diluted EPS | $1.18 | $1.20 | $1.81 | Consolidated Statements of Cash Flows Highlights (thousands) | Activity | 2024 | 2023 | 2022 | | :------------------------- | :---------- | :---------- | :---------- | | Operating activities | $125,196 | $215,016 | $173,759 | | Investing activities | $(1,956) | $26,546 | $(109,801) | | Financing activities | $(121,563) | $(244,626) | $(85,970) | | Cash and equivalents at end of period | $6,561 | $4,884 | $7,948 | [Report on Management's Assessment on Internal Control Over Financial Reporting](index=36&type=section&id=Report%20on%20Management%27s%20Assessment%20on%20Internal%20Control%20Over%20Financial%20Reporting) This section presents management's assessment of the effectiveness of the company's internal control over financial reporting [Report of Independent Registered Public Accounting Firm](index=37&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) This section contains the independent auditor's opinion on the consolidated financial statements and internal controls [Audited Financial Statements](index=39&type=section&id=Audited%20Financial%20Statements) This section includes the complete set of Monro's audited consolidated financial statements [Notes to Consolidated Financial Statements](index=43&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=62&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There have been no changes in or disagreements with accountants on accounting and financial disclosure - No changes in or disagreements with accountants on accounting and financial disclosure[402](index=402&type=chunk) [Item 9A. Controls and Procedures](index=62&type=section&id=Item%209A.%20Controls%20and%20Procedures) Monro's management concluded that disclosure controls and internal control over financial reporting were effective as of March 30, 2024 - The Company's principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of March 30, 2024[404](index=404&type=chunk) - Management concluded that Monro's internal control over financial reporting was effective as of March 30, 2024[405](index=405&type=chunk) - No material changes in internal control over financial reporting occurred during the fiscal quarter ended March 30, 2024[406](index=406&type=chunk) [Item 9B. Other Information](index=62&type=section&id=Item%209B.%20Other%20Information) Monro amended its Credit Facility on May 23, 2024, establishing a 'Covenant Relief Period' through Q4 fiscal 2026, adjusting covenants, interest rates, and capital distribution restrictions - On May 23, 2024, Monro entered into a Fourth Amendment to its Credit Facility, establishing a 'Covenant Relief Period' from Q1 fiscal 2025 through Q4 fiscal 2026[407](index=407&type=chunk) - During the Covenant Relief Period, the minimum interest coverage ratio will be reduced from **1.55x** to **1.00x**, gradually increasing to **1.55x** by Q1 fiscal 2027[408](index=408&type=chunk) - The amendment modifies the EBITDAR definition to permit add-backs for non-cash and up to **20%** cash expenses related to store closures (decreasing to **15%** after Q4 fiscal 2026)[410](index=410&type=chunk) - The interest rate spread on borrowings increases by **25 basis points** during the Covenant Relief Period[411](index=411&type=chunk) - Restrictions on dividends and share repurchases are adjusted, requiring minimum liquidity of at least **$400 million** for these activities during the Covenant Relief Period[412](index=412&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=63&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to Monro, Inc - Not applicable[413](index=413&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=64&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from Monro's 2024 Proxy Statement - Information on directors, executive officers, and corporate governance is incorporated by reference from the 2024 Proxy Statement[416](index=416&type=chunk)[417](index=417&type=chunk) [Item 11. Executive Compensation](index=64&type=section&id=Item%2011.%20Executive%20Compensation) Information concerning executive compensation is incorporated by reference from Monro's 2024 Proxy Statement - Information on executive compensation is incorporated by reference from the 2024 Proxy Statement[418](index=418&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=64&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership of beneficial owners, management, and equity compensation plans is incorporated by reference from Monro's 2024 Proxy Statement - Information on security ownership of certain beneficial owners and management, and equity compensation plan information, is incorporated by reference from the 2024 Proxy Statement[418](index=418&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=64&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on certain relationships, related party transactions, and director independence is incorporated by reference from Monro's 2024 Proxy Statement - Information on certain relationships, related party transactions, and director independence is incorporated by reference from the 2024 Proxy Statement[419](index=419&type=chunk) [Item 14. Principal Accountant Fees and Services](index=64&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from Monro's 2024 Proxy Statement - Information on principal accountant fees and services is incorporated by reference from the 2024 Proxy Statement[419](index=419&type=chunk) PART IV [Item 15. Exhibits and Financial Statement Schedules](index=65&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the filed financial statements, including core statements, notes, and the auditor's report, plus a comprehensive list of exhibits - The report includes audited financial statements: Consolidated Balance Sheets, Statements of Income and Comprehensive Income, Statements of Changes in Shareholders' Equity, and Statements of Cash Flows, along with Notes to Consolidated Financial Statements and the Report of Independent Registered Public Accounting Firm[426](index=426&type=chunk) - A comprehensive list of exhibits is provided, covering organizational documents, stock incentive plans, deferred compensation plans, credit agreements, and other material contracts[427](index=427&type=chunk)[429](index=429&type=chunk) [Item 16. Form 10-K Summary](index=68&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item indicates that no Form 10-K Summary is provided - No Form 10-K Summary is provided[431](index=431&type=chunk) [Signatures](index=69&type=section&id=Signatures) This section contains the required signatures of Monro, Inc.'s principal executive officer, principal financial officer, and Board members, certifying the report filing - The report is signed by Michael T. Broderick (President and Chief Executive Officer) and Brian J. D'Ambrosia (Executive Vice President – Finance, Chief Financial Officer and Treasurer) on May 28, 2024[434](index=434&type=chunk)[435](index=435&type=chunk) - Members of the Board of Directors also signed the report, with Michael T. Broderick acting as Attorney-in-Fact for some directors[435](index=435&type=chunk)