Companies /Consumer Cyclical

Monro Inc

NASDAQ: MNRO Auto Parts
$12.25
▼ $0.36 (−2.85%) today
Markets closed · 8:27pm ET

Q2 2026 Earnings

Reported Oct 29, 2025, 7:34am ET · SEC source
$0.18
Beat +0.00%
EPS · est. $0.18
$288.9M
Miss −3.90%
Revenue · est. $300.6M
+26.0%
Beating market
MNRO vs S&P since report
2 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−24%−16%−8%0Oct 29Oct 30report 7:34am ETearnings−0.8%−21.6%
−24%−16%−8%0Oct 29Oct 30earnings−0.8%−21.6%
MNRO −21.6%S&P 500 −0.8%
−24%−16%−8%0Oct 29Oct 30report 7:34am ETearnings−0.9%−21.6%
−24%−16%−8%0Oct 29Oct 30earnings−0.9%−21.6%
MNRO −21.6%NASDAQ −0.9%
−24%−16%−8%0Oct 28Nov 6report 7:34am ETearnings−1.5%−4.1%
−24%−16%−8%0Oct 28Nov 6earnings−1.5%−4.1%
MNRO −4.1%S&P 500 −1.5%
−24%−16%−8%0Oct 28Nov 6report 7:34am ETearnings−1.9%−4.1%
−24%−16%−8%0Oct 28Nov 6earnings−1.9%−4.1%
MNRO −4.1%NASDAQ −1.9%
−16.59%
Day of report
−2.65%
Next session
+16.58%
One week
+24.93%
30 days

S&P 500 over the same 30 days: −1.04%.

Did MNRO Beat Earnings? Q2 2026 Results

Monro delivered a mixed second quarter for fiscal 2026, matching the $0.18 consensus EPS estimate precisely while falling short on revenue, as total sales of $288.91 million trailed analyst projections of $300.64 million by 3.90% and declined 4.1% year over year. The revenue shortfall was largely a structural story rather than a demand failure; the closure of 145 underperforming stores in the prior quarter shrank the company's footprint to 1,116 locations, pulling total sales lower even as comparable store sales rose 1.1%, marking a third consecutive quarter of positive comps. Gross margin expanded 40 basis points to 35.7%, and adjusted diluted EPS improved to $0.21 from $0.17 a year ago, reflecting the underlying benefits of the operational improvement plan. Still, the company's shares have lost roughly 27% year-to-date, underscoring lingering investor skepticism. Management is not issuing formal fiscal 2026 guidance, and a preliminary October comparable store sales decline of 2% signals near-term consumer softness, though the company expects positive comps for the full year and meaningfully higher adjusted operating income.

Key Takeaways
  • Comparable store sales increased 1.1%, marking three consecutive quarters of positive comps
  • Front end/shocks comparable store sales increased 18% and brakes increased 6%
  • Gross margin expanded 40 basis points to 35.7% driven by lower occupancy and material costs
  • Approximately $11 million inventory reduction reflecting improved inventory management
  • Interest expense decreased 15.3% due to lower weighted average debt
  • $7.6 million net gains from closed store real estate dispositions

“The Monro team drove comparable store sales growth again in the second quarter, which has enabled us to report three consecutive quarters of positive comps for the first time in a couple of years. Further, our business generated an increase in adjusted diluted earnings per share compared to the prior year second quarter. We achieved this through solid gross margin performance, with a gross margin rate that expanded 40 basis points to 35.7% and prudent operating cost control, as reflected in lower store direct costs and good corporate expense control. For the second quarter in a row, we reduced inventory levels across the system, this time by approximately $11 million, which reflects improved inventory management. These results serve as an indication of continued progress toward building enhanced profitability in fiscal 2026”

Monro CEO, on the earnings call

Forward Guidance & Outlook

Monro is not providing formal fiscal 2026 financial guidance. However, the CEO noted that preliminary October comparable store sales are down 2%, reflecting recent softness in consumer demand. Despite this, management expects to deliver positive comparable store sales for fiscal 2026 and believes it has levers to achieve meaningfully higher year-over-year adjusted operating income.

MNRO YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$90.0M$180.0M$270.0M$301.4M$288.9MRevenue$106.4M$103.1MGross Profit$13.2M$12.8MOperating Income$5.6M$5.7MNet Income
$0$90.0M$180.0M$270.0MRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.