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FIRST QUARTER FISCAL 2027 EARNINGS CALL JULY 29, 2026
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Certain statements in this presentation, other than statements of historical fact, including estimates, projections, statements related to our business plans and operating results are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Monro has identified some of these forward-looking statements with words such as “continue,” “expect,” “may,” “believe,” “focus,” “will,” “plan,” “should,” “estimate,” and the negative of these words or other comparable terminology. These forward-looking statements are based on Monro’s current expectations, estimates, projections and assumptions as of the date such statements are made, and are subject to risks and uncertainties that may cause results to differ materially from those expressed or implied in the forward-looking statements. Additional information regarding these risks and uncertainties are described in the Company’s filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our most recently filed periodic reports on Forms 10-K and Form 10-Q, which are available on Monro’s website at https://corporate.monro.com/investors/financials/sec-filings/default.aspx. Monro assumes no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future. In addition to including references to operating income (loss), net loss, and diluted loss per share, which are generally accepted accounting principals (“GAAP”) measures, this presentation includes references to adjusted operating income, adjusted net (loss) income, and adjusted diluted (loss) earnings per share, which are non-GAAP financial measures. Monro has included reconciliations from adjusted operating income, adjusted net (loss) income, and adjusted diluted (loss) earnings per share to their most directly comparable GAAP measures, operating income (loss), net loss, and diluted loss per share in the appendix to this presentation. Management views these non-GAAP financial measures as a way to better assess comparability between periods because management believes these non-GAAP financial measures show the Company’s core business operations while excluding certain items that are not part of our core operations such as pension settlement expense, consulting costs related to our operational improvement plan, transition costs related to back-office optimization, write-off of debt issuance costs, costs related to shareholder matters, and store closing costs net of related gains on the sale of owned locations, lease assignments and early lease terminations. These non-GAAP financial measures are not intended to represent, and should not be considered more meaningful than, or as an alternative to, their most directly comparable GAAP measures. These non-GAAP financial measures may be different from similarly titled non-GAAP financial measures used by other companies. Safe Harbor Statement and Non-GAAP Measures 2
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Monro Shareholder Value Drivers Four Key Areas of Focus Identified as Opportunities for Improvement 3 Driving Profitable Customer Acquisition & Activation ▪ During the first quarter, we continued to strengthen marketing capabilities by refining how we allocate media, customer outreach, & promotional investments across our store network ▪ Increasingly tailoring approach to the needs of individual markets, allowing us to deploy marketing investments more effectively, while supporting both guest acquisition & customer retention ▪ Within our CRM platform, we continued to enhance our artificial intelligence & machine learning capabilities to help determine the most relevant timing, messaging, & promotional offers to existing customers ▪ Improved efficiency of outreach & stronger campaign response rates Increasing Merchandising Productivity ▪ After the re-set of our tire assortment in the fourth quarter of fiscal 2026, with the support of our vendors, we delivered a more attractive assortment to the consumer in the current environment ▪ In the first quarter, we believe that our updated tire assortment helped us gain market share vs. the industry in higher margin tier one tires ▪ In tier four, we believe that our decision to add an opening price point tire enabled us to provide our most price-conscious customers with a better set of options ▪ Implemented improvements in both our in-store stocking programs as well as our front-of-shop presentation Improving Our Customer Experience & Selling Effectiveness ▪ ConfiDrive inspection tool remains the cornerstone of our customer experience transformation ▪ Our team has become increasingly skilled at conducting the inspection more efficiently, and in presenting the results of our findings, so that our customers can better understand their vehicle needs ▪ Intensified our training efforts with technicians to guarantee both the completion & accuracy of these critical inspections ▪ Expanded the rollout of our enhanced District Manager Toolkit to approximately 340 locations & broadened our scope from gross margins to overall store profit improvement opportunities Closed Store Real Estate Dispositions ▪ Continued our process to exit real estate ▪ During the first quarter, successfully exited a total of 6 leases & sold 4 locations, which resulted in cumulative proceeds of $3M ▪ Remaining balance of 37 stores that have the potential to be monetized during the next several quarters
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7.1% 5.8% 4.1% 2.2% 0.7% -2.3% -3.2% -1.2% -5% 0% 5% 10% April May June July MTD FY26 FY275.7% 1.1% 1.2% -2.4% -1.7% -10% -5% 0% 5% 10% Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 First Quarter Fiscal 2027 Highlights ▪ Comp store sales decreased 1.7% ▪ Held our tire unit volumes flat, and we believe this allowed us to take market share both in our tier one tires as well as in our overall tire category ▪ Effectiveness of our ConfiDrive courtesy inspection process helped us drive average repair order growth and meaningful improvements in certain of our higher-margin service categories, including batteries, alignments, and front - end shocks ▪ Maintained our marketing investment throughout the quarter, despite sales headwinds Challenging Operating Environment in the Full-Service Auto Aftermarket driven by Lower Store Traffic & Consumer Weakness ▪ Product and service category performance: ▪ Batteries: +8% ▪ Front/End Shocks: +1% ▪ Alignments: +1% ▪ Tires: -1% ▪ Brakes: -1% ▪ Service: -5% ▪ Service categories ~54% of sales, consistent with the prior year period 4 Quarterly Comparable Store Sales Trends Monthly Comparable Store Sales Trends 1 Fiscal 2027 represents preliminary results through July 25, 2026 Q1FY27 Key Highlights Q1FY27 Key Highlights 1
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Gross Margin Decrease driven by Higher Occupancy Costs as a Percentage of Sales; Maintained Investment in Marketing, despite Sales Headwinds First Quarter Fiscal 2027 Results 1 Please refer to the reconciliations of adjusted operating income and adjusted diluted (loss) earnings per share in the appendix to this presentation and in our earnings release for further details regarding excluded items in Q1FY27 and Q1FY26. Adjusted operating income and adjusted diluted (loss) earnings per share are non-GAAP measures that exclude certain items that are not part of our core operations such as pension settlement expense, consulting costs related to our operational improvement plan, transition costs related to back-office optimization, write-off of debt issuance costs, costs related to shareholder matters, and store closing costs net of related gains on the sale of owned locations, lease assignments and early lease terminations. Reconciliations of operating income (loss) to adjusted operating income and diluted loss per share to adjusted diluted (loss) earnings per share are included in our earnings release dated July 29, 2026. 5 Q1FY27 Q1FY26 Δ Sales (millions) $287.1 $301.0 (4.6%) Same Store Sales -1.7% 5.7% (740) Bps Gross Margin 35.0% 35.5% (50) Bps Adjusted Operating Income1 0.8% 4.7% (390) Bps Adjusted Diluted (Loss) Earnings Per Share1 $(.09) $.22 (140.9%) (% of sales)
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Financial Position Capital Allocation, Balance Sheet, and Liquidity 6 Capital Allocation First Quarter Fiscal 2027 ▪ Received ~$3M from disposal of property and equipment from successfully exiting 6 leases and selling 4 owned locations ▪ Capex of ~$8M ▪ Spent ~$9M in principal payments for financing leases ▪ Paid ~$9M in dividends ▪ Cash used for operating activities of ~$30M was largely driven by timing of payments that caused accounts payable and accrued expenses to be a use of cash during Q1FY27 ▪ Net bank debt of ~$99M as of June 2026 ▪ Availability under credit facility of ~$261M and cash and equivalents of ~$10M as of June 2026 Balance Sheet and Liquidity
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Fiscal 2027 Expectations 7 Fiscal 2027 Expectations ▪ Expect to deliver year-over-year comparable store sales growth in fiscal 2027, primarily driven by performance improvement initiatives ▪ The results of our store optimization plan reduced total sales by $9M in the first quarter of fiscal 2027 ▪ Given continued cost inflation, expect that gross margin for the full-year of fiscal 2027 will be consistent with fiscal 2026 ▪ Expect higher selling, general and administrative expenses as we invest in additional marketing to support topline growth ▪ Expect to fund our capital allocation priorities during fiscal 2027 ▪ Expect CAPEX spend of $25M to $35M
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Appendix 8
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Reconciliation of Adjusted Operating Income (Unaudited) 9 2026 2025 Operating Income (Loss) $3,695 $(6,075) Consulting costs related to operational improvement plan 1,009 4,722 Transition costs related to back-office optimization 333 571 Costs related to shareholder matters 80 - Store closing costs, net of related gains on sale of owned locations, lease assignments and early lease terminations (2,960) 14,816 Adjusted Operating Income $2,157 $14,034 (Dollars in Thousands) Quarter Ended Fiscal June
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Reconciliation of Adjusted Net (Loss) Income (Unaudited) 10 2026 2025 Net Loss $(2,149) $(8,050) Pension settlement expense 1,171 - Consulting costs related to operational improvement plan 1,009 4,722 Transition costs related to back-office optimization 333 571 Write-off of debt issuance costs 221 263 Costs related to shareholder matters 80 - Store closing costs, net of related gains on sale of owned locations, lease assignments and early lease terminations (2,960) 14,816 Provision for (benefit from) income taxes on pre-tax adjustments 38 (5,297) Adjusted Net (Loss) Income $(2,257) $7,025 (Dollars in Thousands) Quarter Ended Fiscal June
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Reconciliation of Adjusted Diluted (Loss) Earnings Per Share (Unaudited) 11 2026 2025 Diluted Loss Per Share $(.08) $(.28) Pension settlement expense .03 - Consulting costs related to operational improvement plan .02 .12 Transition costs related to back-office optimization .01 .01 Write-off of debt issuance costs .01 .01 Costs related to shareholder matters .00 - Store closing costs, net of related gains on sale of owned locations, lease assignments and early lease terminations (.07) .37 Adjusted Diluted (Loss) Earnings Per Share $(.09) $.22 Quarter Ended Fiscal June Note: Amounts may not foot due to rounding.