Core Insights - Monro, Inc. (NASDAQ: MNRO) reported its Q3 2025 earnings, which have not been widely covered recently [1] Financial Performance - The company has a long-term investment perspective, focusing on a 5-10 year horizon [1] - The investment strategy emphasizes a mix of growth, value, and dividend-paying stocks, with a particular focus on value [1] Investment Strategy - The company maintains a simple investment approach, which includes selling options occasionally [1]

Core Insights - Monro, Inc. reported third-quarter fiscal 2025 results with both net sales and earnings missing the Zacks Consensus Estimate, showing year-over-year declines in both metrics [1][2] Financial Performance - Adjusted earnings were 19 cents per share, missing the Zacks Consensus Estimate of 28 cents, and down 51% from 39 cents in the prior-year quarter [2] - Net sales totaled $305.8 million, a decline of 3.7% year-over-year, missing the Zacks Consensus Estimate of $310 million [3] - Comparable store sales decreased by 0.8% (adjusted for days), but improved by 500 basis points from a 5.8% decrease in the second quarter of fiscal 2025 [4] Sales Breakdown - The company experienced a 30% increase in comparable store sales for batteries, 13% for alignments, and 6% for front end/shocks, while tires, maintenance services, and brakes saw declines of 1%, 2%, and 6% respectively [4] Profitability Metrics - Gross profit was $104.8 million, down from $112.7 million in the year-ago period, with gross margin contracting 120 basis points to 34.3% due to higher material costs and increased promotions [5] - Total operating expenses rose to $94.8 million from $91.3 million in the prior year, increasing as a percentage of net sales by 230 basis points to 31% [6] - Operating income was reported at $10 million, down from $21.4 million in the prior-year quarter, with operating margin contracting 340 basis points to 3.3% [6] Store Operations - Monro closed nine stores, resulting in a total of 1,263 company-operated locations and 48 franchised stores by the end of the quarter [7] Cash Flow and Liquidity - For the first nine months of fiscal 2025, net cash provided by operating activities was $103 million, with capital expenditures of $20.7 million [8] - The company anticipates generating at least $120 million in operating cash flow for fiscal 2025, with capital expenditures expected to range from $25 million to $30 million [8] - As of December 28, 2024, Monro had total liquidity of $521 million [8] Stock Performance - Monro's stock has lost 25.6% in the past three months, contrasting with a 5% growth in the industry [9]

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]