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FAIRPORT, N.Y. - Monro, Inc. (NASDAQ: MNRO), a prominent automotive service and tire provider whose stock has declined 47% over the past year and is currently trading near its 52-week low, announced today the immediate appointment of Peter Fitzsimmons as President and Chief Executive Officer. Fitzsimmons, a Partner and Managing Director at global consulting firm AlixPartners, steps in following the departure of former President and CEO Michael Broderick, after the company’s Board decided a change in leadership was necessary to enhance operations and profitability.
Fitzsimmons’ appointment is part of a broader engagement with AlixPartners, LLP and its affiliate AP Services, LLC, aimed at developing and executing a performance improvement plan. His mandate includes driving profitability and increasing operating income and total shareholder returns. According to InvestingPro, five analysts have recently revised their earnings expectations downward for the upcoming period, highlighting the challenges ahead. Fitzsimmons has extensive experience in executive roles, including CEO of a large automotive collision repair business and CFO of an auto parts distributor, where he has been credited with significant improvements in sales and financial performance.
Robert Mellor, Chairman of the Board, expressed confidence in Fitzsimmons’ ability to revitalize Monro and leverage the company’s strong financial position to realize its potential as a leading automotive service provider. Mellor also acknowledged Broderick’s contributions to Monro and wished him well in his future endeavors.
Fitzsimmons, in his remarks, highlighted Monro’s resilience, low leverage, nationwide presence, and strategic relationships as key advantages. He expressed enthusiasm for working with the Board and management team to unlock the full value of the company.
Monro, Inc., with nearly $1.3 billion in sales in fiscal 2024, operates over 1,250 stores and 8,500 service bays nationwide. The company maintains a notable 7% dividend yield and has consistently paid dividends for 21 consecutive years, as reported by InvestingPro. Based on InvestingPro’s Fair Value analysis, the stock currently appears undervalued despite its recent challenges. The company continues to expand its national footprint through acquisitions and new store openings, providing a range of automotive services from basic maintenance to complex vehicle repairs.
The company’s forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expected outcomes. Monro does not undertake any obligation to update forward-looking statements beyond what is required by law.
This news article is based on a press release statement and provides an overview of the recent leadership changes at Monro, Inc. For deeper insights into Monro’s financial health, valuation metrics, and growth prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.
In other recent news, Monro Inc. reported its financial results for the third quarter of fiscal year 2024, revealing a decline in both earnings per share (EPS) and revenue compared to forecasts. The company’s EPS was $0.19, falling short of the anticipated $0.30, while revenue was $305.8 million, below the expected $311.33 million. This marks a year-over-year revenue decrease of 3.7%. Additionally, Monro finalized an amendment to its agreement with American Tire Distributors, concluding the earnout period with two payments totaling approximately $6.95 million. These payments will fulfill the earnout obligations under the original Asset Purchase Agreement. The amendment also introduces changes to service level agreements to ensure a consistent supply of products. Analysts from firms like Wedbush Securities and Wells Fargo have noted the company’s efforts to improve operational efficiency and strategic growth amid challenges in the automotive service industry. Monro is also focusing on operational improvements and cost management to navigate current market dynamics.
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