Palm Valley Capital Fund Repurchased Monro (MNRO) In Q1. Here’s Why

In its archetypal 4th 2025 capitalist letter, Palm Valley Capital Fund emphasized stocks specified arsenic Monro, Inc. (NASDAQ:MNRO). Headquartered successful Rochester, New York, Monro, Inc. (NASDAQ:MNRO) offers automotive undercar repair, and tyre income and services. The one-month instrumentality of Monro, Inc. (NASDAQ:MNRO) was -10.88%, and its shares mislaid 50.78% of their worth implicit the past 52 weeks. On April 4, 2025, Monro, Inc. (NASDAQ:MNRO) banal closed astatine $15.27 per stock with a marketplace capitalization of $447.744 million.

Palm Valley Capital Fund stated the pursuing regarding Monro, Inc. (NASDAQ:MNRO) successful its Q1 2025 capitalist letter:

"We started 4 caller positions successful the archetypal quarter: Forrester Research (ticker: FORR), Monro, Inc. (NASDAQ:MNRO), Reynolds Consumer Products (ticker: REYN), and Flowers Foods (ticker: FLO). Each of these is simply a comparatively tiny weighting successful the Fund. During the 4th we repurchased Monro, a starring relation of retail tyre and automotive repair stores successful the United States. In fiscal twelvemonth 2024, Monro operated 1,288 stores successful 32 states and serviced 4.7 cardinal vehicles. Monro’s automotive repair concern has benefited from the rising mean property of vehicles and the grounds fig of vehicles connected the road. However, adjacent with these tailwinds, gross and net person precocious been nether pressure. Many of Monro’s customers person been suffering from the rising outgo of living, and arsenic a result, person been delaying automotive repairs and trading down to lower-priced tires. These trends contributed to Monro posting debased to mid-single digit same-store income declines implicit the past year, sending shares to multiyear lows.