Monro Reports Q3 Revenue of $293.39M, Below Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
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Should l Buy MNRO?
Reports Q3 revenue $293.39M, consensus $295.19M. Comparable store sales, adjusted for days, decreased 0.8% in the prior year period. Comparable store sales, unadjusted for days, decreased 1.9% in the prior year period. "After we saw some softness in consumer demand in October, the Monro team drove growth in comparable store sales in November and December. Further, when adjusting for a shift in the timing of the Christmas holiday in the prior year, the months of November and December as well as the third quarter, mark the first time we delivered positive comps on a 2-year stack in over two years. This has also enabled us to report our fourth consecutive quarter of positive comps for the first time in several years. We believe we were able to take share in our tire category as soon as winter hit as our stores were well-prepared with proper staffing, an updated tire assortment, and additional marketing spend. For the second quarter in a row, we delivered solid gross margin performance with a gross margin rate that expanded 60 basis points year-over-year to 34.9%. We also re-invested the selling, general, and administrative expense savings from our closed stores into additional marketing to support topline growth. For the third quarter in a row, we reduced inventory levels across the system, this time by over $7 million. We have now achieved an overall inventory reduction of more than $28 million, which is 16% since the end of March, just nine months ago. This is a clear indication of how we've continued to manage our inventories more efficiently in fiscal 2026", said Peter Fitzsimmons, president and CEO.
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Analyst Views on MNRO
Wall Street analysts forecast MNRO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MNRO is 20.00 USD with a low forecast of 20.00 USD and a high forecast of 20.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 20.140
Low
20.00
Averages
20.00
High
20.00
Current: 20.140
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, 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
Monro Reports Q3 Results: Sales Decline Amid Profit Growth
- 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
Monro Reports Q3 Results: Sales Decline but Profit Growth
- Sales Performance Review: Monro's Q3 sales totaled $293.4 million, a 4% decline year-over-year primarily due to the closure of 145 underperforming stores, although comparable store sales increased by 1.2%, indicating resilience in continuing locations.
- Gross Margin Improvement: The gross margin expanded by 60 basis points year-over-year to 34.9% in Q3, driven by lower material costs and reduced occupancy costs as a percentage of sales, despite rising technician labor costs due to inflation, reflecting effective cost management.
- Operating Expense Optimization: Total operating expenses for Q3 were $83.8 million, or 28.6% of sales, significantly down from 31% in the prior year, primarily due to cost savings from closed stores and net gains from real estate dispositions, enhancing the company's financial flexibility.
- Net Income Growth: Net income for Q3 reached $11.1 million, a 143.1% increase from $4.6 million in the same period last year, with diluted earnings per share at $0.35, demonstrating a significant improvement in profitability amidst challenges.
See More
Monro, Inc. to Release Q3 Fiscal 2026 Earnings on January 28, 2026
- Earnings Release Schedule: Monro, Inc. is set to release its Q3 fiscal 2026 earnings on January 28, 2026, which is expected to provide critical financial data for assessing the company's performance.
- Conference Call Details: The company will host a conference call at 8:30 a.m. Eastern Time on January 28, 2026, accessible by dialing 1-833-470-1428 with access code 539351, ensuring transparent communication with investors.
- Replay Availability: A replay of the earnings call will be available approximately two hours after the call until February 11, 2026, accessible by dialing 1-866-813-9403 with access code 693184, enhancing information accessibility for stakeholders.
- Company Background: Monro, Inc. is a leading automotive service and tire provider in the U.S., generating approximately $1.2 billion in sales in fiscal 2025, committed to delivering high-quality auto repair services, showcasing strong market competitiveness.
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
Monro Reports Q3 Results: Sales Decline Amid Profit Growth
- 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
Monro Reports Q3 Results: Sales Decline but Profit Growth
- Sales Performance Review: Monro's Q3 sales totaled $293.4 million, a 4% decline year-over-year primarily due to the closure of 145 underperforming stores, although comparable store sales increased by 1.2%, indicating resilience in continuing locations.
- Gross Margin Improvement: The gross margin expanded by 60 basis points year-over-year to 34.9% in Q3, driven by lower material costs and reduced occupancy costs as a percentage of sales, despite rising technician labor costs due to inflation, reflecting effective cost management.
- Operating Expense Optimization: Total operating expenses for Q3 were $83.8 million, or 28.6% of sales, significantly down from 31% in the prior year, primarily due to cost savings from closed stores and net gains from real estate dispositions, enhancing the company's financial flexibility.
- Net Income Growth: Net income for Q3 reached $11.1 million, a 143.1% increase from $4.6 million in the same period last year, with diluted earnings per share at $0.35, demonstrating a significant improvement in profitability amidst challenges.
See More
Monro, Inc. to Release Q3 Fiscal 2026 Earnings on January 28, 2026
- Earnings Release Schedule: Monro, Inc. is set to release its Q3 fiscal 2026 earnings on January 28, 2026, which is expected to provide critical financial data for assessing the company's performance.
- Conference Call Details: The company will host a conference call at 8:30 a.m. Eastern Time on January 28, 2026, accessible by dialing 1-833-470-1428 with access code 539351, ensuring transparent communication with investors.
- Replay Availability: A replay of the earnings call will be available approximately two hours after the call until February 11, 2026, accessible by dialing 1-866-813-9403 with access code 693184, enhancing information accessibility for stakeholders.
- Company Background: Monro, Inc. is a leading automotive service and tire provider in the U.S., generating approximately $1.2 billion in sales in fiscal 2025, committed to delivering high-quality auto repair services, showcasing strong market competitiveness.
See More
