Monro’s first quarter results fell short of Wall Street expectations, with revenue and non-GAAP earnings both missing analyst estimates. Despite these challenges, the market responded positively, likely reflecting management’s focus on operational improvements and cost discipline. CEO Peter Fitzsimmons pointed to the company’s ongoing work in refining digital marketing, expanding the ConfiDrive inspection tool, and optimizing inventory as key themes in the quarter. Management acknowledged persistent consumer caution and severe winter weather disruptions, but highlighted sequential improvement in store traffic and profitability as the quarter progressed.
Is now the time to buy MNRO? Find out in our full research report (it’s free for active Edge members).
Monro (MNRO) Q1 CY2026 Highlights:
- Revenue: $273.8 million vs analyst estimates of $283.7 million (7.2% year-on-year decline, 3.5% miss)
- Adjusted EPS: -$0.16 vs analyst estimates of -$0.05 (significant miss)
- Adjusted Operating Income: -$5.22 million vs analyst estimates of $1.66 million (-1.9% margin, significant miss)
- Operating Margin: -1.9%, up from -8.1% in the same quarter last year
- Locations: 1,115 at quarter end, down from 1,260 in the same quarter last year
- Same-Store Sales fell 2.4% year on year (2.8% in the same quarter last year)
- Market Capitalization: $473.5 million
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Monro’s Q1 Earnings Call
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Tom Wendler (Stephens) asked about the impact of rising oil and material costs on gross margin. CEO Peter Fitzsimmons said the company is monitoring cost increases and will adjust pricing and supplier strategies as needed to protect profitability.
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David Lantz (Wells Fargo) questioned how management expects to drive positive same-store sales given recent declines. Fitzsimmons responded that ongoing marketing, merchandising, and store initiatives are expected to offset current pressures and support growth over the year.
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Bret Jordan (Jefferies) inquired about the sustainability of the dividend amid EBIT margin pressure. CFO Brian D'Ambrosia noted that the Board reviews the dividend quarterly, considering cash flow, performance, and capital priorities before making decisions.
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John Healy (Northcoast Research) asked about the effectiveness and timing of increased SG&A (selling, general, and administrative) spend on driving sales. D'Ambrosia explained that recent investments in marketing and operational tools are already producing incremental sales in some regions, but returns may vary month to month.
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Brian Nagel (Oppenheimer) pressed on whether the consumer demand environment worsened during the quarter. Fitzsimmons indicated that while consumer pressure remains, sequential improvements in traffic and sales were seen after weather disruptions, with mixed regional performance across the network.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will focus on (1) the effectiveness of Monro’s targeted marketing and ConfiDrive initiatives in driving same-store sales gains, (2) the company’s ability to manage rising input and labor costs without eroding margin, and (3) developments related to the ongoing strategic review process. Updates on store optimization, inventory strategies, and regional sales trends will also be closely monitored for signs of sustainable improvement.
Monro currently trades at $15.78, down from $16.56 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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