GET DAILY SIGNALSMonro (MNRO) Q2 Results Prompt -8.5% Share Drop Amid Margin Pressure
Key Takeaways
- Revenue came in at $283.6 million, down 1.8% year over year and roughly in line with the $284.1 million consensus estimate.
- Adjusted earnings per share (EPS, or profit per share) of -$0.01 missed the $0.05 consensus; Monro posted a GAAP (Generally Accepted Accounting Principles) net loss of $1.6 million, or $0.05 per diluted share.
- Comparable store sales fell 1.8% as customers deferred higher-ticket purchases and traded down to lower-cost tire options.
- Operating income dropped to $2.6 million from $12.8 million a year earlier, pushing operating margin down to 0.9% from 4.4%.
- Monro ended the quarter with 1,114 company-operated stores and 47 franchised locations, and entered into $375 million of new senior secured credit facilities on October 23, 2026.
- For more detail on Monro's Major News, Today's Price Move, Price Targets, and Forecasts, explore the additional pages available for this ticker.
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Why Monro's Results Matter to Investors
Monro operates one of the largest networks of automotive service and tire retailers in the country, with roughly 1,100 company-operated stores under brands including Monro Auto Service and Tire Centers, Mr. Tire, and Car-X. Its quarterly results offer a useful window into consumer spending patterns in the full-service auto aftermarket. The fiscal second quarter, ended September 26, 2026, comes during an ongoing turnaround focused on store optimization, better inventory controls, and stronger in-store execution. I am watching closely to see whether comparable store sales and margins can find stability after multiple periods of softer traffic and customers shifting toward lower-cost options.
What the Numbers Showed
Monro reported second-quarter fiscal 2027 sales of $283.6 million, down 1.8% from $288.9 million in the same period last year and essentially matching the $284.1 million consensus. Comparable store sales also declined 1.8%.
Profitability faced clear pressure. The company recorded a GAAP net loss of $1.6 million, or $0.05 per diluted share, versus net income of $5.7 million, or $0.18 per diluted share, a year ago. Adjusted EPS came in at -$0.01, below the $0.05 analyst expectation. Operating income fell to $2.6 million from $12.8 million, and gross margin narrowed by 50 basis points year over year.
Over the first half of fiscal 2027, sales declined 3.3% to $570.8 million and the company posted a net loss of $3.8 million. Management offered no formal full-year guidance but pointed to progress on the District Manager Toolkit, the ConfiDrive inspection process, and ongoing marketing efforts even as demand remained soft. I also checked this using Tickeron’s AI Screener to see how Monro compares with peers in the sector.
How the Market Reacted
Investors reacted negatively. Monro shares fell roughly 8.5% to $13.09 in post-earnings trading, reflecting disappointment over the earnings miss and tighter margins despite revenue that met expectations. The drop in comparable store sales and weaker profitability underscored concerns about trade-down behavior and ongoing traffic softness in the aftermarket. Sentiment stays measured as the market weighs the pace of operational improvements against cost and demand challenges.
What to Watch Going Forward
Looking ahead, several elements tied to the turnaround will be important. The path of comparable store sales remains central, especially whether gains in batteries and maintenance can translate into broader service growth while tire demand stabilizes. Early bottom-line gains in stores using the District Manager Toolkit are encouraging, and the broader rollout will be worth monitoring.
Margin trends deserve attention as well. Higher technician labor costs and self-funded promotions have weighed on results, so any progress on merchandising, labor efficiency, and tire inventory resets will be useful signals. The new $375 million senior secured credit facility adds another factor investors will want to evaluate alongside store rationalization efforts.
Broader consumer spending trends, particularly on higher-ticket repairs and tire purchases, will continue to influence outcomes. With no full-year guidance issued, quarterly updates on traffic, average repair order growth, and trade-down activity will carry extra weight when assessing the company’s trajectory.
Using AI Tools for Deeper Analysis
In my own research process, Tickeron’s AI-powered tools have become a regular part of evaluating names like Monro. The AI Screener helps surface relevant peers and technical patterns quickly, while the Trend Prediction Engine and Pattern Search Engine add context on momentum and historical setups. These resources allow me to cross-check fundamentals against market signals without spending hours on manual screens.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
MNRO in upward trend: 10-day moving average moved above 50-day moving average on September 28, 2026
The 10-day moving average for MNRO crossed bullishly above the 50-day moving average on September 28, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 16 of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 84%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 41 of 59 cases where MNRO's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 69%.
The Momentum Indicator moved above the 0 level on October 27, 2026. You may want to consider a long position or call options on MNRO as a result. In 63 of 96 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 66%.
Following a +6.64% 3-day Advance, the price is estimated to grow further. Considering data from situations where MNRO advanced for three days, in 174 of 274 cases, the price rose further within the following month. The odds of a continued upward trend are 64%.
The Aroon Indicator entered an Uptrend today. In 113 of 173 cases where MNRO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 65%.
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for MNRO turned negative on October 23, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In 43 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 88%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MNRO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 77%.
MNRO broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of 14 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 56 (best 1 - 100 worst), indicating steady price growth. MNRO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 89 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.768) is normal, around the industry mean (0.879). P/E Ratio (62.174) is within average values for comparable stocks, (40.427). Projected Growth (PEG Ratio) (4.702) is also within normal values, averaging (1.471). Dividend Yield (0.078) settles around the average of (0.040) among similar stocks. P/S Ratio (0.320) is also within normal values, averaging (48.609).
The Tickeron SMR rating for this company is 89 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 96 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. MNRO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.
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General Information
a provider of automotive undercar repair and tire services
Industry AutoPartsOEM
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