Monro Muffler Buying 31 Stores
One of the largest car-care chains in the country based in Rochester, New York, is growing again.
Rochester-based Monro Muffler Brake Inc. announced it was acquiring an additional 31 stores in New York, Pennsylvania and Massachusetts. Terms of the deal, expected to be completed in August, were not announced. Most of the stores will be renamed Mr. Tire. Meanwhile, four other stores in Massachusetts will operate as Monro Brake & Tire.
Monro expects to add approximately $31 million in annual sales with the deal. In April, the company completed its acquisition of 146 Car-X franchises. Overall, the company operates about 1,000 stores in 25 Midwestern and Eastern states.
Monro said in its earning report that sales increased by 8.7 percent to $236.5 million compared to a year earlier in its quarter ending June 27. Increased sales were attributed to the new store acquisitions, which helped offset a 0.4 percent decrease in sales at existing stores. Net income for the quarter increased 11 percent to $18.8 million.
Diluted earnings per share increased 9.6 percent to 57 cents a share, up from 52 cents a share. Analysts expected diluted earnings per share of 58 cents on revenue of $239.36 million.
“We were also encouraged to see that following a slow start to the first quarter, comparable store sales improved, turning slightly positive in May and June and increasing approximately 2 percent month-to-date in July on positive traffic trends,” said John Van Heel, president and CEO. “Overall, we remain confident in our business model and in our ability to increase our market share and deliver strong overall sales and earnings growth, in both strong and weak markets.”
The company expects 2016 fiscal sales to be $950 million to $970 million, which is up from previous estimates. Monro also said that it anticipates sales to be between $233 million and $237 million in its second quarter. Shares of Monro Muffler were down slightly to $61.48 in midday trading Friday.
Van Heel said the company, which provides undercar repair and tire serive, will continue to seek out other acquisitions.
“We are encouraged by our significant operating margin expansion, the successful integration of our recent acquisitions and the rebound in July’s comparable store sales,” he said. “As we move forward, we will continue to actively manage our business through this choppy environment to drive strong bottom line results. We are also pleased by the acquisitions we’ve completed and announced already this year.”
This article originally appeared on Democrat & Chronicle.