10-K · May 27, 2026
Monro, Inc. faced a challenging year, reporting a 3.2% decline in sales to $1.16 billion and a diluted EPS of $0.03, rebounding from a loss of $0.22 in the previous year. While comparable store sales grew by 1.4%,…
Earnings analysis · 10-Q
MNRO earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
Monro reported fiscal Q1 2027 revenue of $287.1 million, down 4.6% year over year and modestly above the fiscal Q4 2026 level of $274 million, while comparable-store sales fell 1.7%. GAAP results improved materially,…
Read full summary
Monro reported fiscal Q1 2027 revenue of $287.1 million, down 4.6% year over year and modestly above the fiscal Q4 2026 level of $274 million, while comparable-store sales fell 1.7%. GAAP results improved materially, with operating income of $3.7 million versus a $6.1 million loss a year earlier and diluted loss narrowing to $0.08 from $0.28; however, adjusted EPS deteriorated to a $0.09 loss from $0.22 of profit. Liquidity remains supported by $261.5 million of revolver availability, but negative $37.9 million estimated free cash flow and a $48.4 million sequential increase in credit-facility debt are key near-term concerns.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.08
What stood out
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GAAP operating profit turned positive
GAAP operating income improved to $3.7 million from a $6.1 million operating loss in the prior-year quarter, as OSG&A declined $16.3 million, or 14.4%, to $96.7 million.
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Gross margin improved sequentially
Gross margin was 35.0%, down 50 bps year over year but up 110 bps from 33.9% in fiscal Q4 2026. Lower technician labor costs from productivity and efficiency partially offset a 90-bp occupancy-cost headwind.
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Working-capital deficit narrowed
Working-capital deficit narrowed by $40.1 million to $241.1 million at June 27, 2026, from a $281.2 million deficit at March 28, 2026.
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Credit-facility liquidity remains available
The company had $261.5 million available under its credit facility, alongside $9.5 million of cash and equivalents, and stated these sources provide adequate liquidity for the next 12 months and long term.
What to watch
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Sales and comparable-store sales declined
Sales fell $13.9 million, or 4.6%, to $287.1 million: closed stores reduced sales by 2.9 percentage points and comparable-store sales declined 1.7%. Maintenance-service comparable sales declined 5%, while tires and brakes each declined 1%.
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Adjusted earnings deteriorated sharply
Adjusted diluted loss was $0.09 per share versus adjusted EPS of $0.22 in the prior-year quarter, a $0.31 per-share deterioration. The reported $0.08 loss also missed the $0.03 consensus estimate by $0.11 per share.
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Cash flow weakened materially
Operating cash flow was negative $30.4 million versus negative $1.9 million a year earlier; after $7.5 million of capex, estimated free cash flow was negative $37.9 million. Accounts payable and accrued expenses consumed $43.2 million of cash due to payment timing.
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Borrowings and floating-rate exposure increased
Credit-facility borrowings rose to $108.4 million at June 27, 2026 from $60.0 million at March 28, 2026. A 100-bp SOFR increase would raise annual interest expense by about $1.1 million based on quarter-end debt.
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Substantial lease obligations remain
No updated Item 1A risk factors were included in this 10-Q. However, the filing identifies $430.2 million of lease payments through October 2040, including $92.4 million due within one year, as a material fixed-commitment consideration.
Management's outlook
The company is not providing fiscal 2027 financial guidance. Its quantitative capital-spending outlook is fiscal-2027 capex of $25 million to $35 million, and management expects to continue generating positive operating cash flow over the full year.
Earlier filings 4
10-Q · January 28, 2026
Monro reported Q3 (three months ended December 27, 2025) sales of $293,387,000 and diluted EPS of $0.35. Gross margin held near 34.9% and operating margin expanded to 6.3% as operating income rose to $18,570,000.…
10-Q · October 29, 2025
Monro reported quarterly sales of $288,914,000 and diluted EPS of $0.18 for the three months ended September 27, 2025. Revenue declined versus the prior-year quarter and the company remains margin-positive (gross margin…
10-Q · January 29, 2025
Monro reported quarterly sales of $305,769,000, down from $317,653,000 a year earlier, with gross margin compressing to 34.3% and operating income halving to $9,963,000. Diluted EPS fell to $0.15 from $0.38 a year ago.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.