MNRO Stock: Beaten-Down, High-Yield Stock Too Low to Ignore?
July 2, 2025
MNRO Stock Presenting Income Investors a Great Opportunity
When it comes to generating income from the stock market, it’s easy to get caught up in chasing stocks that have already done well. But history teaches us that sometimes great opportunities can be found in stocks that have done poorly—stocks that have been beaten down and left behind by most investors.
There’s a reason why legendary investors like Warren Buffett and many others have repeatedly talked about being “greedy” and buying when everyone else is panicking.
That’s where Monro Inc (NASDAQ:MNRO) comes in.
MNRO stock hasn’t been a market darling lately. But for income investors, it might be worth watching. The decline in the stock price has made it a great opportunity for those willing to take a second look.
What Does Monro Do?
Headquartered in Fairport, New York, Monro operates one of the largest retail tire and automotive repair stores in the U.S. The company operates and franchises over 1,100 stores across 32 states.
Monro’s stores provide a range of automotive maintenance and repair services, including brake repair, tire sales and installations, oil changes, and various other under-the-hood services.
The company’s locations go by well-known brand names like “Monro Auto Service and Tire Centers,” “Tire Choice Auto Service Centers,” “Mr. Tire Auto Service Centers,” “Car-X Tire & Auto,” “Tire Warehouse Tires for Less,” “Ken Towery’s Tire & Auto Care,” “Mountain View Tire & Auto Service,” and “Tire Barn Warehouse.” (Source: “Profile,” Yahoo! Finance, last accessed June 25, 2025.)
Why Is MNRO Stock Down So Much?
Despite Monro’s steady business model, its stock has struggled over the past year. At the time of writing, MNRO stock is trading near $13.92 per share, down from highs over $60.00 back in 2020.
There are a few reasons for this massive decline in the stock price.
First, the company’s financial performance has been anemic.
In the most recent quarter, for example, Monro reported revenue of $295.0 million, down about five percent from the same period a year ago. Its same-store sales were up close to three percent, but it wasn’t enough to offset the overall revenue decline. (Source: “Monro, Inc. Reports Fourth Quarter and Full Year Fiscal 2025 Financial Results,” Monro Inc, May 23, 2025.)
Wall Street analysts have gone pretty sour on Monro. There aren’t many “Buy” ratings on MNRO stock, and analysts aren’t expecting a lot of growth. (Source: “Analysis,” Yahoo! Finance, last accessed June 25, 2025.)
On top of that, Monro is facing a class-action lawsuit tied to a data breach that exposed sensitive customer information. Obviously, this can take some time to resolve, but in the meantime, investors don’t want to hold this stock.
What’s Ahead for MNRO Stock?
Given what has been happening at Monro, one might have to ask: why would income investors even consider MNRO stock now?
Well, the company’s management is taking action.
Management is planning to close about 145 underperforming locations, with the process of closing to start in the first quarter of fiscal 2026 (its current quarter).
There’s been a leadership change at the company. In April 2025, Peter Fitzsimmons took over as chief executive officer, replacing Brett Ponton. This could be good for Monro.
Fitzsimmons has been clear: Monro’s top priorities are operational performance and returning to profitable growth.
All I can say here is that, while Monro’s near-term challenges remain, the store closures, new leader, and focus on operation performance and profitability are steps in the right direction. Over time, they should give a boost to MNRO stock.
MNRO Stock Offers Solid Dividend
For income investors, one of the main attractions of MNRO stock is its dividend.
The company currently pays a quarterly dividend of $0.28 per share. At the current share price, this translates to a forward annual dividend yield of around 8.13%.
That’s a high yield, especially when you compare it to other consumer service stocks—or even the broader S&P 500, where the average yield is around 1.4%.
It’s also worth noting here that, even during difficult times, Monro has shown a commitment to maintaining its dividend. The company has consistently paid dividends for years, making it a reliable income source for shareholders.
And one has to really wonder how dividends will look a few quarters down the road, as management is focused on improving profitability. There’s a good chance the dividend will remain intact or even grow.
Chart Courtesy of StockCharts.com
The Lowdown on MNRO Stock
There’s no sugarcoating it: Monro is facing challenges. Sales are down, store closures are underway, and investor sentiment is bearish. But for contrarian income investors, this could be a great time to take a look at MNRO stock.
The company has a proven, recession-proof business model. Management is making tough decisions to improve operations. And the dividend yield is one of the most attractive one can find in the consumer services sector.
If Monro’s turnaround plan works, today’s investor could lock in an eight percent (or higher) yield and enjoy significant capital gains as MNRO stock recovers.
Lastly, as per the most recent data, BlackRock Inc, T.Rowe Price Investment Management, Inc., and The Vanguard Group are three of the biggest institutional holders of MNRO stock. Combined, they own over 10 million shares. (Source: “Holders,” Yahoo! Finance, last accessed June 25, 2025.)
