The new $375M credit facility with Ares Capital Corporation replaces the prior bank facility and extends maturities to 2030, but the floating-rate structure and secured nature increase financial risk. Monitor the Q3 2027 release for any improvement in comparable store sales trends and operating leverage.
Price Chart
Executive Summary
Monro reported Q2 fiscal 2027 results with sales down 1.8% to $283.6M and a net loss of $1.6M versus net income of $5.7M a year ago. The company also disclosed a new $375M credit facility with Ares Capital Corporation, replacing its prior credit agreement.
Key Financial Metrics
Key Facts
- Q2 fiscal 2027 sales decreased 1.8% to $283.6M from $288.9M a year ago
- Comparable store sales declined 1.8%
- Net loss of $1.6M versus net income of $5.7M in the prior year period
- Diluted loss per share of $0.05 versus diluted EPS of $0.18 a year ago
- Adjusted diluted loss per share of $0.01 versus adjusted diluted EPS of $0.21 a year ago
- Operating income fell 79.7% to $2.6M from $12.8M
- Gross margin decreased 50 basis points year-over-year
- On October 23, 2026, the company entered into a new $375M credit agreement with Ares Capital Corporation
- The new credit facilities consist of a $250M term loan and a $125M revolving credit facility, maturing October 23, 2030
- Company is not providing fiscal 2027 financial guidance
Financial Impact
Sales declined $5.3M year-over-year; net income swung from +$5.7M to -$1.6M; operating income fell $10.2M
Risk Factors
- Continued comparable store sales declines for four consecutive quarters
- Operating margin compression from higher occupancy costs and marketing spend
- Increased leverage from the new $250M term loan and floating-rate interest exposure
- Litigation reserve of $1.7M in the quarter indicates potential legal exposure
- No fiscal 2027 guidance provided, creating uncertainty
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-437009 |
| Document: d12848d8k.htm | 0001193125-26-437009 |
| Document: 0001193125-26-437009-index-headers.html | 0001193125-26-437009 |
| Document: 0001193125-26-437009-index.html | 0001193125-26-437009 |
| Document: 0001193125-26-437009.txt | 0001193125-26-437009 |
| 8-K Data (Synthetic) | 0001193125-26-437009 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | $12.30 | awaiting T+20 | awaiting T+20 | $11.95 (+2.85%) |
Aug 13, 2026 11w ago | 8-K | $11.27 $12.79 | ▲ +13.49% | ▲ +15.23% | $11.95 (+6.03%) |
Jul 29, 2026 13w ago | 8-K | $13.26 $12.61 | ▲ +4.87% | ▲ +9.89% | $11.95 (+9.85%) |
Jun 16, 2026 19w ago | 8-K | $16.00 $17.33 | ▲ +8.31% | ▲ +8.11% | $11.95 (−25.31%) |
Jun 11, 2026 20w ago | Institutional Cluster | $16.08 $16.83 | ▲ +4.66% | ▲ +2.77% | $11.95 (−25.68%) |
May 27, 2026 22w ago | 8-K | $15.93 $16.05 | ▲ +0.75% | ▲ +2.65% | $11.95 (−24.99%) |
US Market Status
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