Billionaire Carl Icahn Acquires Significant Stake in Monro (MNRO), Causing Share Prices to Soar
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 05 2025
0mins
Should l Buy MNRO?
Source: TipRanks
Icahn's Investment in Monro Muffler: Billionaire investor Carl Icahn has acquired a 14.8% stake in Monro Muffler, making him the largest individual shareholder, surpassing BlackRock Fund Advisors.
Stock Price Surge: Following the announcement of Icahn's investment, Monro's stock price increased by over 18%, despite the company facing challenges such as falling same-store sales and rising labor costs.
Icahn's History in the Auto Sector: This is not Icahn's first venture into the automotive industry; he previously owned Icahn Automotive before selling it last year, and his investment strategy often involves pushing for changes to improve company performance.
Analyst Ratings: Currently, only one analyst has rated Monro Muffler stock as a Hold with a price target of $16, indicating a potential downside risk of 11.4% from its current levels.
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Analyst Views on MNRO
Wall Street analysts forecast MNRO stock price to fall
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 23.580
Low
20.00
Averages
20.00
High
20.00
Current: 23.580
Low
20.00
Averages
20.00
High
20.00
About MNRO
Monro, Inc. is an operator of retail tire and automotive repair stores in the United States. The Company offers replacement tires and tire-related services, automotive undercar repair services, and a range of routine maintenance services, primarily on passenger cars, light trucks, and vans. It also provides other products and services for brakes, mufflers and exhaust systems, and steering, drive train, suspension, and wheel alignment. Its retail tire and automotive repair stores operate primarily under the brands Monro Auto Service and Tire Centers, Tire Choice Auto Service Centers, Mr. Tire Auto Service Centers, Car-X Tire & Auto, Tire Warehouse Tires for Less, Ken Towery’s Tire & Auto Care, Mountain View Tire & Auto Service, and Tire Barn Warehouse. It services bus companies, construction equipment, dry vans, farmers, forestry, home builders trucks, intermodal, landscapers, logistics, long-haul truckers, mining companies, municipal and DPW vehicles, racetracks, and quarries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Monro Declares Quarterly Dividend of $0.28 per Share
- Quarterly Dividend Announcement: Monro has declared a quarterly dividend of $0.28 per share, consistent with previous distributions, demonstrating the company's ongoing ability to maintain stable cash flows, which is likely to attract more income-focused investors.
- Dividend Yield: The forward yield of 4.75% reflects the company's attractiveness in the current market environment, potentially enhancing investor confidence in its long-term investment value.
- Financial Performance Overview: In Q3 2026, Monro reported a non-GAAP EPS of $0.16, beating expectations by $0.02, although revenue of $293.4 million fell short by $1.79 million, indicating resilience in profitability despite revenue challenges.
- Future Outlook: Monro expects to continue achieving positive comp store sales in fiscal 2026 while advancing digital marketing and operational improvements, indicating a proactive growth strategy in a competitive market.
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- Quarterly Cash Dividend: Monro, Inc. has declared a cash dividend of $0.28 per share, applicable to all common stock and holders of convertible preferred stock, reflecting the company's commitment to shareholder returns.
- Dividend Payment Date: The dividend will be payable on March 10, 2026, to shareholders who own shares by the close of business on February 24, 2026, ensuring a timely cash inflow for investors.
- Financial Performance: In fiscal 2025, Monro generated approximately $1.2 billion in sales, indicating strong growth momentum in the automotive service and tire market, which enhances the company's competitive position in the industry.
- Commitment to Service Quality: Monro aims to deliver high-quality automotive repair and tire services, leveraging professional expertise and state-of-the-art technology to ensure customer vehicle safety, further solidifying its status as a leading national service provider.
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- Sales Performance Overview: Monro, Inc. reported Q3 sales of $293.4 million, a 4% decline primarily due to the closure of 145 underperforming stores, yet a 1.2% increase in comparable store sales indicates business resilience.
- Gross Margin Improvement: The company achieved a 60 basis point year-over-year increase in gross margin to 34.9%, driven by lower material costs and optimized operating expenses, demonstrating effective cost control measures.
- Real Estate Disposition Progress: During the quarter, Monro exited 32 leases and sold 20 owned locations, generating proceeds of $17.3 million, with cumulative proceeds reaching $22.8 million, expected to support future cash flow.
- Digital Marketing Expansion: The company expanded its multichannel digital media plan to over 340 additional stores and added call center support to 114 more locations, enhancing customer experience and sales effectiveness, further boosting brand impact.
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Monro (MNRO) Q3 2026 Earnings Call Transcript
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- Earnings Beat: Monro's Q3 2026 Non-GAAP EPS of $0.16 exceeded expectations by $0.02, indicating resilience in profitability despite challenging market conditions.
- Revenue Decline: The company reported revenue of $293.4 million, a 4.0% year-over-year decrease, missing market expectations by $1.79 million, which highlights ongoing sales pressures affecting overall performance.
- Comparable Sales Growth: Comparable store sales increased by 1.2% in the third quarter, suggesting improved sales performance at existing locations, which may contribute positively to future revenue recovery.
- Cash Flow and Credit Position: As of December 27, 2025, Monro generated operating cash flow of $48 million, with $424.9 million available under its credit facility and $4.9 million in cash, reflecting strong liquidity management amid operational challenges.
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- Gross Margin Improvement: The gross margin rose by 60 basis points to 34.9% year-over-year, driven by lower material costs and reduced occupancy costs, despite rising technician labor costs due to inflation, reflecting the company's efforts in cost control.
- Significant Reduction in Operating Expenses: Operating expenses for Q3 were $83.8 million, or 28.6% of sales, a notable decrease from $94.8 million in the prior year, primarily due to net gains from closed store dispositions and cost reductions, showcasing the company's operational optimization success.
- Substantial Net Income Growth: Net income for Q3 was $11.1 million, a 143.1% increase from $4.6 million in the same period last year, with diluted earnings per share rising from $0.15 to $0.35, indicating a significant enhancement in profitability amid challenges.
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Monro Declares Quarterly Dividend of $0.28 per Share
- Quarterly Dividend Announcement: Monro has declared a quarterly dividend of $0.28 per share, consistent with previous distributions, demonstrating the company's ongoing ability to maintain stable cash flows, which is likely to attract more income-focused investors.
- Dividend Yield: The forward yield of 4.75% reflects the company's attractiveness in the current market environment, potentially enhancing investor confidence in its long-term investment value.
- Financial Performance Overview: In Q3 2026, Monro reported a non-GAAP EPS of $0.16, beating expectations by $0.02, although revenue of $293.4 million fell short by $1.79 million, indicating resilience in profitability despite revenue challenges.
- Future Outlook: Monro expects to continue achieving positive comp store sales in fiscal 2026 while advancing digital marketing and operational improvements, indicating a proactive growth strategy in a competitive market.
See More
Monro, Inc. Declares Quarterly Cash Dividend
- Quarterly Cash Dividend: Monro, Inc. has declared a cash dividend of $0.28 per share, applicable to all common stock and holders of convertible preferred stock, reflecting the company's commitment to shareholder returns.
- Dividend Payment Date: The dividend will be payable on March 10, 2026, to shareholders who own shares by the close of business on February 24, 2026, ensuring a timely cash inflow for investors.
- Financial Performance: In fiscal 2025, Monro generated approximately $1.2 billion in sales, indicating strong growth momentum in the automotive service and tire market, which enhances the company's competitive position in the industry.
- Commitment to Service Quality: Monro aims to deliver high-quality automotive repair and tire services, leveraging professional expertise and state-of-the-art technology to ensure customer vehicle safety, further solidifying its status as a leading national service provider.
See More
Monro, Inc. Q3 2026 Earnings Call Highlights
- Sales Performance Overview: Monro, Inc. reported Q3 sales of $293.4 million, a 4% decline primarily due to the closure of 145 underperforming stores, yet a 1.2% increase in comparable store sales indicates business resilience.
- Gross Margin Improvement: The company achieved a 60 basis point year-over-year increase in gross margin to 34.9%, driven by lower material costs and optimized operating expenses, demonstrating effective cost control measures.
- Real Estate Disposition Progress: During the quarter, Monro exited 32 leases and sold 20 owned locations, generating proceeds of $17.3 million, with cumulative proceeds reaching $22.8 million, expected to support future cash flow.
- Digital Marketing Expansion: The company expanded its multichannel digital media plan to over 340 additional stores and added call center support to 114 more locations, enhancing customer experience and sales effectiveness, further boosting brand impact.
See More
Monro (MNRO) Q3 2026 Earnings Call Transcript
See More
Monro Reports Q3 2026 Earnings with Mixed Results
- Earnings Beat: Monro's Q3 2026 Non-GAAP EPS of $0.16 exceeded expectations by $0.02, indicating resilience in profitability despite challenging market conditions.
- Revenue Decline: The company reported revenue of $293.4 million, a 4.0% year-over-year decrease, missing market expectations by $1.79 million, which highlights ongoing sales pressures affecting overall performance.
- Comparable Sales Growth: Comparable store sales increased by 1.2% in the third quarter, suggesting improved sales performance at existing locations, which may contribute positively to future revenue recovery.
- Cash Flow and Credit Position: As of December 27, 2025, Monro generated operating cash flow of $48 million, with $424.9 million available under its credit facility and $4.9 million in cash, reflecting strong liquidity management amid operational challenges.
See More
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- Sales Performance Decline: Monro's Q3 sales reached $293.4 million, a 4% decrease year-over-year, primarily due to the closure of 145 underperforming stores, although comparable store sales increased by 1.2%, indicating heightened market competition.
- Gross Margin Improvement: The gross margin rose by 60 basis points to 34.9% year-over-year, driven by lower material costs and reduced occupancy costs, despite rising technician labor costs due to inflation, reflecting the company's efforts in cost control.
- Significant Reduction in Operating Expenses: Operating expenses for Q3 were $83.8 million, or 28.6% of sales, a notable decrease from $94.8 million in the prior year, primarily due to net gains from closed store dispositions and cost reductions, showcasing the company's operational optimization success.
- Substantial Net Income Growth: Net income for Q3 was $11.1 million, a 143.1% increase from $4.6 million in the same period last year, with diluted earnings per share rising from $0.15 to $0.35, indicating a significant enhancement in profitability amid challenges.
See More
