Monro, Inc. has recently released its 10-Q report, revealing a detailed look into the company's operations and financial performance. Monro, Inc. operates retail tire and automotive repair stores across the United States, offering replacement tires, automotive undercar repair services, routine maintenance services, and various other products and services for passenger cars, light trucks, and vans. The company operates under multiple brand names and was founded in 1957, with its headquarters located in Fairport, New York.
In the recent developments section, Monro, Inc. announced the adoption of a limited-duration shareholder rights plan on November 9, 2025, aimed at protecting the interests of all company shareholders. The plan is designed to prevent any entity, person, or group from gaining control of the company without appropriately compensating all shareholders. Additionally, the company approved a plan to close 145 underperforming stores, resulting in net store closing costs of $14.8 million during the quarter ended June 28, 2025.
Furthermore, the company entered into an employment agreement with Peter Fitzsimmons, appointing him as the President and Chief Executive Officer and a member of the Board of Directors. Monro, Inc. also engaged AlixPartners, LLP to support the development and implementation of the company’s long-term growth strategy to improve financial performance.
In terms of financial performance, the third quarter of 2026 saw diluted earnings per common share at $0.35, with adjusted diluted earnings per share at $0.16. Sales decreased by 4.0 percent, attributed to closed stores, partially offset by higher comparable store sales. Comparable store sales increased by 1.2 percent from the prior year period. Operating income was reported at $18.6 million, with adjusted operating income at $10.3 million. Net income for the period was $11.1 million, while adjusted net income was $5.0 million.
The detailed financial summary for the nine months ended December 27, 2025, indicates a 133.3% increase in diluted earnings per common share compared to the prior year period, with adjusted diluted earnings per share at $0.16, reflecting a 15.8% decrease. Sales amounted to $883.3 million, showing a 1.9% decrease from the prior year period. The company reported a gross profit of $312.4 million, with operating, selling, general, and administrative expenses at $287.1 million.
The report also highlights the drivers of the change in sales, indicating that the sales decrease was primarily due to closed stores, partially offset by an increase in comparable store sales. Comparable store sales increased in the front end/shocks and tires categories during the three months ended December 27, 2025, and in the front end/shocks, tires, brakes, and maintenance service categories during the nine months ended December 27, 2025.
The company's gross profit as a percentage of sales increased by 60 basis points for the three months ended December 27, 2025, attributed to decreased material costs and occupancy costs, partially offset by an increase in technician labor costs. However, the gross profit as a percentage of sales decreased by 20 basis points for the nine months ended December 27, 2025, primarily due to increased technician labor costs, partially offset by decreased occupancy costs and material costs.
Today the company's shares have moved -0.7% to a price of $21.15. If you want to know more, read the company's complete 10-Q report here.
