Monro (MNRO) 8-K Monro Muffler Brake, Inc. Announces Record Second Quarter Financial Results

Exhibit 99.1

CONTACT:	Robert Gross Chairman and Chief Executive Officer (585) 647-6400
	Catherine D’Amico Executive Vice President — Finance Chief Financial Officer (585) 647-6400
	Investors: Caren Villarreal Media: Diane Zappas FD (212) 850-5600

FOR IMMEDIATE RELEASE

MONRO MUFFLER BRAKE, INC. ANNOUNCES RECORD SECOND QUARTER FINANCIAL RESULTS

~ Second Quarter Comparable Store Sales Increase 7.4% ~
~Second Quarter EPS Increases 28.9% to $.49 ~
~ Raising Full Year EPS Guidance to $1.44 to $1.48 ~

ROCHESTER, N.Y. — October 26, 2009 —Monro Muffler Brake, Inc. (Nasdaq: MNRO), a leading provider of automotive undercar repair and tire services, today announced record financial results for its second quarter ended September 26, 2009.

Second Quarter Results

Sales for the second quarter of fiscal 2010 increased 13.9% to a record $136.6 million compared to $119.9 million for the second quarter of fiscal 2009. Sales were driven largely by continued strong in-store execution and effective advertising and marketing campaigns. Comparable store sales grew 7.4%, on top of a 4.5% comparable store sales increase in the second quarter of the prior year, and exceeded the Company’s previously estimated range of 5% to 7%. By category, comparable store sales increased approximately 11% for tires, 7% for alignments, 7% for brakes, 7% for maintenance services and 4% for exhaust.

The total sales for the quarter included an increase in sales from new stores of $10.0 million. The 26 Autotire stores acquired in June 2009 contributed $8.4 million of the increase.

Gross margin increased to 43.1% in the second quarter of fiscal 2010 from 42.0% in the prior year quarter. The improvement in gross margin was driven by lower material costs, improved labor productivity and leveraging of fixed occupancy costs included in cost of sales. Partially offsetting this improvement was a sales mix shift to lower margin tire and oil change sales. Total operating expenses were $41.3 million, or 30.2% of sales, compared with 30.5% of sales for the same period of the prior year. Operating income for the quarter increased 27.3% to $17.5 million from $13.8 million in the prior year period.

Net income for the second quarter increased 30.4% to a record $10.0 million from $7.7 million for the prior year period. Diluted earnings per share for the quarter were $.49 and exceeded the Company’s previously expected range of $.47 to $.48. This compares to diluted earnings per share of $.38 in the second quarter of fiscal 2009.

The Company opened four locations and closed five locations during the quarter, ending the second quarter of fiscal 2010 with 739 stores.

First Six Month Results

For the six-month period, net sales increased 10.2% to a record $264.7 million from $240.3 million in the same period of the prior year. Net income for the first six months of fiscal 2010 increased 25.5% to a record $19.4 million, or $.95 per diluted share, compared with $15.5 million, or $.77 per share in the comparable period of fiscal 2009.

Robert G. Gross, Chairman and Chief Executive Officer stated, “We are delighted with our continued strong performance and positive traction that we experienced in the second quarter which was driven by effective in-store sales execution and our ability to capitalize on favorable macro factors. Additionally, our strong reputation as a trusted service provider and our effective advertising strategy helped us to achieve a very impressive record same store traffic increase of approximately 7% for the quarter. Further, we are pleased that we continue to gain market share, both organically as a result of our effective business strategy and positive impact of dealership closures, as well as through our recent value-priced acquisitions which are expected to add approximately $90 million (18%) to annual sales.”

Company Outlook

Based on current visibility and business and economic trends, the Company anticipates comparable store sales growth in the range of 6% to 8% for the third quarter of fiscal 2010. The Company also expects diluted earnings per share for the third quarter to be in the range of $.32 to $.35, compared with $.28 for the third quarter of fiscal 2009.

For fiscal 2010, the Company now anticipates comparable store sales growth in the range of 6% to 7% compared with its previously estimated range of 4% to 7%. The Company now expects total fiscal 2010 sales in the range of $553 million to $563 million compared with its previously estimated range of $515 million to $530 million. The Company raised its estimated range for fiscal 2010 diluted earnings per share to $1.44 to $1.48 from its previously estimated range of $1.35 to $1.45. The estimate is based on 20.6 million weighted average shares outstanding.

Mr. Gross concluded, “We are pleased with our continued strong momentum entering the third quarter as we are executing well and maximizing our opportunities for market share expansion. Notably, our September comparable store sales increased approximately 10% and our October comparable sales were up approximately 12.5%. The integration of our three recent value-priced acquisitions into the Monro family are progressing as planned and we believe that we are well-positioned to take advantage of additional acquisition opportunities as they arise. As we look to the second half of our fiscal year, we remain optimistic about our prospects given the favorable trends that we are currently experiencing in both our business and in the industry.”

Investor Conferences

Mr. Gross will participate in the Wells Fargo Securities 2009 Consumer Growth Conference at the New York Palace Hotel in New York City at 9:30 a.m. EST on October 28, 2009. He will also participate in the Gabelli & Company Automotive Aftermarket Symposium at 3:30 p.m. PDT on November 3, 2009 in Las Vegas, NV. The presentations will be webcast live during the conference and available for 30 days after the conference ends via the Investor Information section of the Company’s website www.monro.com

Earnings Conference Call and Webcast

The Company will host a conference call and audio webcast today, October 26, 2009 at 11:00 a.m. Eastern Time. The conference call may be accessed by dialing 800-839-7875 and using the required pass code 1491478. A replay will be available approximately one hour after the recording through Monday, November 2, 2009 and can be accessed by dialing 888-203-1112. The live conference call and replay can also be accessed via audio webcast at the Investor Info section of the Company’s website, located at www.monro.com. An archive will be available at this website through November 2, 2009.

About Monro Muffler Brake

Monro Muffler Brake operates a chain of stores providing automotive undercar repair and tire services in the United States, operating under the brand names of Monro Muffler Brake and Service, Mr. Tire, Tread Quarters Discount Tires, Autotire and Tire Warehouse. The Company currently operates 784 stores in New York, Pennsylvania, Ohio, Connecticut, Massachusetts, West Virginia, Virginia, Maryland, Vermont, New Hampshire, New Jersey, North Carolina, South Carolina, Indiana, Rhode Island, Delaware, Maine, Illinois and Missouri. Monro’s stores provide a full range of services for brake systems, steering and suspension systems, tires, exhaust systems and many vehicle maintenance services.

MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars and share counts in thousands)

	Quarter Ended Fiscal September
	2009			2008			% Change
Sales	$	136,634		$	119,912			13.9	%
Cost of sales, including distribution and occupancy costs		77,781			69,511			11.9
Gross profit		58,853			50,401			16.8
Operating, selling, general and administrative expenses		41,148			36,786			11.9
Intangible amortization		198			133			49.1
Gain on disposal of assets		(20	)		(286	)		—
Total operating expenses		41,326			36,633			12.8
Operating income		17,527			13,768			27.3
Interest expense, net		1,442			1,592			(9.5	)
Other income, net		(75	)		(188	)		—
Income before provision for income taxes		16,160			12,364			30.7
Provision for income taxes		6,158			4,692			31.2
Net income	$	10,002		$	7,672			30.4
Diluted earnings per share	$	.49		$	.38			28.9	%
Weighted average number of diluted shares outstanding		20,546			20,230
Number of stores open (at end of quarter)		739			709

MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars and share counts in thousands)

	Six Months Ended Fiscal September
	2009			2008			% Change
Sales	$	264,679		$	240,281			10.2	%
Cost of sales, including distribution and occupancy costs		149,417			138,991			7.5
Gross profit		115,262			101,290			13.8
Operating, selling, general and administrative expenses		80,306			73,638			9.1
Intangible amortization		331			256			29.5
Loss (gain) on disposal of assets		119			(319	)
Total operating expenses		80,756			73,575			9.8
Operating income		34,506			27,715			24.5
Interest expense, net		3,338			3,112			7.3
Other income, net		(117	)		(260	)		(54.9	)
Income before provision for income taxes		31,285			24,863			25.8
Provision for income taxes		11,872			9,397			26.3
Net income	$	19,413		$	15,466			25.5
Diluted earnings per share	$	.95		$	.77			23.4	%
Weighted average number of diluted shares outstanding		20,487			20,159

MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Dollars in thousands)

	September 26,		March 28,
	2009		2009
Current assets
Cash	$	4,298	$	3,336
Inventories		78,136		71,443
Other current assets		28,963		26,935
Total current assets		111,397		101,714
Property, plant and equipment, net		185,577		185,061
Other noncurrent assets		96,969		89,976
Total assets	$	393,943	$	376,751
Liabilities and Shareholders’ Equity
Current liabilities	$	82,463	$	71,325
Long-term debt		82,667		97,098
Other long term liabilities		13,443		14,037
Total liabilities		178,573		182,460
Total shareholders’ equity		215,370		194,291
Total liabilities and shareholders’ equity	$	393,943	$	376,751