Monro (NasdaqGS:MNRO) FY Conference November 04, 2025 05:00 PM ET Speaker2All right. So last but certainly not least, happy to introduce Monro. So they're an auto repair and service provider. They serve the do-it-for-me segment, which is about 50% of their business. Exciting story as they go through their turnaround plan. Led by President CEO Peter Fitzsimmons and Executive VP and CFO Brian D'Ambrosia. Pleasure to have you guys here, and we'll get it started.Speaker0Everybody hear me okay?Speaker2So maybe t ...

Customer Segmentation - The streaming-only or broadband-only customer represents a distinct segment from traditional linear TV viewers, with limited overlap [1] - Cost is a primary driver for consumers choosing less expensive virtual MVPDs [2] Content Delivery - Content delivery is becoming increasingly agnostic, with fast channels, linear channels, and on-demand streams all utilizing unicast technology [3] - The shift from broadcast to unicast is transforming content delivery [3] Business Strategy - Providing value, reliable customer service, brand representation, and ease of use are crucial for success [4] - The company believes in a strategy focused on delivering value to customers [4]

Core Insights - Kroger is reintroducing paper coupons in all stores to simplify promotional offers and appeal to a broader customer base, particularly older consumers and those without access to the latest technology [2][3][4] - Customer price perception has improved across nearly all divisions, indicating positive reception to the changes made by Kroger [2] - The company aims to address the needs of low- and middle-income consumers who are increasingly using coupons to save money amid economic stress [5] Group 1 - Kroger's Chairman and CEO Ron Sargent emphasized the importance of paper coupons for older consumers who may not be digitally savvy, aiming to provide them with equal access to deals [3][4] - The reintroduction of paper coupons is expected to generate incremental business, as it caters to customers who feel disenfranchised by digital-only offers [3][4] - The CFO of Kroger noted measurable benefits from paper coupons, including increases in unit sales and positive customer feedback [4] Group 2 - In 2023, Kroger delivered over 4 billion digital coupons, which was 1 billion more than in 2022, indicating a growing reliance on couponing among consumers [5] - Sargent reported that low- and middle-income consumers are making smaller, more frequent shopping trips and are increasingly purchasing private-label products [5]

Financial Data and Key Metrics Changes - In Q4 2024, sales increased by 3.9% to $437.3 million, marking the eighth consecutive quarter of positive adjusted comparable store sales [11][12] - Adjusted operating income rose to $3.2 million, while adjusted diluted earnings per share was a loss of $0.04 [13][61] - For the full year 2024, net revenue increased by 3.8% to $1.823 billion, with adjusted diluted earnings per share at $0.52, exceeding prior guidance [14][63] Business Line Data and Key Metrics Changes - Adjusted comparable store sales for Q4 were up 1.5%, driven by America's Best's growth of 2%, while Eyeglass World's comparable store sales declined by 1.7% due to Hurricane Helene [11][12] - Managed care sales comped high single digits throughout the year, contributing to approximately 40% of total revenues [14][22] Market Data and Key Metrics Changes - The company experienced a decline in cash-pay sales, which was offset by strong managed care sales [12][14] - The impact of weather and consumer sentiment was noted, particularly in February, leading to a cautious outlook for the near term [25][26] Company Strategy and Development Direction - The company is focusing on transforming its business by enhancing customer segmentation and personalizing messaging to attract higher-value customers [21][23] - A strategic shift is underway to target managed care customers, who now represent a significant portion of the customer base [22][34] - Investments in technology and operational efficiencies are being prioritized to improve customer experience and drive profitability [18][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the early results from transformation initiatives, despite recent negative traffic trends [25][26] - The company is preparing for a wider range of scenarios in its guidance due to uncertainties in consumer sentiment and weather impacts [26][70] Other Important Information - The company announced a leadership change with the appointment of a new CFO, Chris Laden, effective March 31 [9][10] - The company is implementing a comprehensive review of its store fleet, with plans to take action on 43 stores through fiscal year 2026 [20] Q&A Session Summary Question: How has the company factored in resources and risks from the pivot to a more moderate middle-income consumer? - Management indicated that this segment is already a significant part of the current customer base, and efforts are focused on enhancing the customer experience for these groups [78][80] Question: Can you provide context on recent performance trends and their impact on guidance? - Management acknowledged strong performance in January but noted choppy trends in the last two weeks of February, leading to a more conservative guidance approach [86][87] Question: What is the plan for remote rollout in 2025? - The company plans to continue opening remote-enabled stores where laws allow and integrate remote capabilities as part of its ongoing operations [92][95] Question: How is managed care expected to impact top-line guidance in 2025? - Managed care is projected to grow at high single digits, contributing significantly to the overall revenue, while cash-pay consumers face more challenges [108][110] Question: Can you elaborate on the drivers of comparable store sales in 2025? - Management expects growth to come equally from traffic and average ticket increases, with positive trends observed from recent initiatives [100][102]