Monro : Investor Presentation – March 2025
MNRO
Monro, Inc. Investor Presentation March 2025
Company Overview
A Leading Chain of Independently Owned and Operated Tire and Auto Service Locations
A Leading Chain in the Northeastern U.S.
Map as of 12/28/24
Expanding in Southern and Western markets
Fiscal 2024 sales of $1,276.8 million
1,263
company operated
stores in 32 states
48
franchised locations
10
acquisitions in the past
5 years adding
156 locations
and
$224M in revenue
and entry into
3 new states
3
Investment Thesis
Leading national
automotive service and tire
provider with 1,263 locations in 32 states
Well-positioned to
capitalize on a favorable
industry backdrop
Focus on operational
Scalable platform with
excellence to increase
significant growth
customer lifetime value
opportunity in acquisitions
Low-cost operator
Strong balance sheet and
operating cash flow
Support for Teammates to
enhance productivity &
retention
Delivering consistent shareholder returns through dividends
4
Fundamentals of Industry Remain Strong
Favorable Industry Backdrop for Automotive Services
U.S. Annual Light Vehicle Sales
20
18
16
14
12
10
8
6
4
2
0 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Source: FRED Economic Data, Light weight Vehicle Sales: Autos and Light Trucks (annual data)
Annual Vehicles Miles Traveled
3,300,000
3,225,000
3,150,000
3,075,000
3,000,000
2,925,000
2,850,000
2,775,000
2,700,000 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23
U.S. Light Vehicles in Operation (VIO)
290,000
280,000
270,000
260,000
250,000
240,000
230,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Source: Auto Care Association Factbook
Key Highlights
Source: Office of Highway Policy Information Traffic Volume Trends Data, Moving 12-Month Total Vehicle Miles Traveled
5
Fundamentals of Industry Remain Strong
Monro Operates in the $333 Billion Do-It-For-Me* Segment of $414 Billion U.S. Automotive Aftermarket Industry
Automotive Aftermarket DIFM vs. DIY Sales
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
2019
2020
2021
2022
2023
2024
DIFM
DIY
Source: Auto Care Association Factbook
Estimates for 2019-2023; 2024 forecast
DIFM vs. DIY Trends
2019
%
2023
%
CAGR
(outlets)
(outlets)
Motor Vehicle Dealers
16,741
14.3%
16,835
13.8%
0.1%
General Repair Garages
81,537
69.8%
86,614
71.1%
1.5%
Specialty Repair
11,304
9.7%
10,570
8.7%
(1.7%)
Oil Change/Lube
7,284
6.2%
7,865
6.4%
1.9%
Total
116,866
100.0%
121,884
100.0%
Source: Auto Care Association Factbook
Note: The table above is not intended to be a complete list of competitors within the automotive aftermarket, which also includes (but is not limited to) online retailers and mass merchandisers.
Key Highlights
* Includes Replacement Tire Segment
6
Third Quarter Fiscal 2025 Highlights
Comp Store Sales Trends Improved Sequentially from the Second Quarter & Business Returned to Year-over-Year Comp
Sales Growth in December2
Quarterly Comparable Store Sales Trends
0%
-0.8%
-5%
-6.1%
-5.8%
-7.2%
-10%
-9.9%
-15%
Q3FY24
Q4FY241
Q1FY25
Q2FY25
Q3FY252
Q3FY25
Key Highlights
Monthly Comparable Store Sales Trends
10%
FY24
5%
1.1%2
FY25
0%
-5%
-1.2%
-1.9%
-1.2%3
-5.7%
-6.6%
-5.6%
-6.2%
-10%
-15%
October
November
December
January MTD4
Q3FY25
Key Highlights
3 Adjusted for one additional selling day
7
4 Preliminary results through January 25, 2025
Third Quarter Fiscal 2025 Results
Commitment to Sales and Unit Growth, Improving Customer Counts & Making Necessary Investments
Q3FY25
Q3FY24
Δ
Sales (millions)
$305.8
$317.7
(3.7%)
Same Store Sales1
-0.8%
-6.1%
530 bps
Gross Margin
34.3%
35.5%
(120) bps
Operating Margin
3.3%
6.7%
(340) bps
Adjusted Diluted EPS2,3
$.19
$.39
(51.3%)
8
Strong Financial Position
Operating Cash Flow Supports Growth Strategy and Capital Return to Shareholders
Disciplined Capital Allocation
YTD Fiscal 2025
Strong Balance Sheet and Liquidity
9
Strategic Priorities
Capitalize on Growing Retail Demand to Sustain Long Term Growth
Driving productivity improvements and delivering sales growth in all Retail locations with a focus on ~300 of our small or underperforming stores
Generate significant cash flow through improved profitability and working capital reductions Continue to evaluate M&A opportunities as we invest for growth in our existing stores Capital return to shareholders through a healthy dividend program
Aligning ESG initiatives and strategy with business goals to strengthen long-term business resilience
10
Disclaimer
Monro Inc. published this content on March 10, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 10, 2025 at 21:03:41.167.