Monro (MNRO) 8-K Results of Operations and Financial Condition

Exhibit 99.1

CONTACT:	Robert Gross
	President and Chief Executive Officer
	(585) 647-6400
	Catherine D’Amico
	Executive Vice President – Finance
	Chief Financial Officer
	(585) 647-6400
	Investor Relations:
	Cara O’Brien/Melissa Myron
	Media Contact:
	Melissa Merrill
	Financial Dynamics
	(212) 850-5600

FOR IMMEDIATE RELEASE

MONRO MUFFLER BRAKE, INC. ANNOUNCES RECORD THIRD QUARTER SALES AND EARNINGS
~ Sales Increase 12% ~
~ Operating Income Increases 19%~

     ROCHESTER, N.Y. – January 17, 2006 – Monro Muffler Brake, Inc. (Nasdaq: MNRO)a leading provider of automotive undercar repair and tire services, today announced record financial results for the third quarter ended December 24, 2005.

     Third quarter sales increased 12.0% to a record $90.2 million from $80.5 million last year. Comparable store sales increased 4.7%, led by growth of approximately 15% and 9% in the comparable store tire and maintenance service categories, respectively. In addition, sales from new stores added $6.7 million during the quarter.

     Gross profit for the third quarter increased 10.3% to $34.9 million versus $31.6 million reported in the third quarter of fiscal 2005. Gross margin was 38.7% compared to 39.3% in the year ago period, which can be attributed to a shift in sales mix to the lower margin tire and maintenance service categories and an increase in the cost of oil. Selling, general, and administrative expenses, as a percentage of sales, improved to 30.5% versus 31.5% in the third quarter last year due largely to the Company’s ability to leverage fixed costs, as well as a decrease in Sarbanes-Oxley compliance costs. Together, these factors contributed to an 18.7% increase in operating income and a 40 basis point improvement in operating margin compared to the same period last year.

     Net income increased 15.4% to a record $4.1 million versus $3.5 million reported in the same quarter last year. Earnings per diluted share for the quarter grew 12.5% to $0.27, at the high end of the Company’s previous

estimate, from $0.24 in the year ago period. The Company opened three new stores during the quarter and closed three stores, resulting in 625 stores at the end of the quarter.

     For the nine month period, net sales increased 9.4% to $280.5 million versus $256.3 million last year. Net income for the same period was $19.4 million, 14.9% above the $16.9 million reported last year. Earnings per diluted share for the nine months increased 12.1% to $1.30 compared to $1.16 last year.

     Robert G. Gross, President and Chief Executive Officer, commented, “We are excited that we were able to deliver another quarter of record results, even as our customers remain cautious. Our tire and maintenance service categories, which are increasingly important to our business, contributed to the double-digit top line gains in the quarter. Further, our ability to increase sales off of our existing cost base helped improve our industry leading operating margin and drive an impressive 18.7% increase in operating income.”

     Based on current trends and year-to-date results, the Company continues to expect comparable store sales growth for the full fiscal year to be in the range of 2% to 3%, and diluted earnings per share to be between $1.52 and $1.55 compared to $1.35 per share last year.

     Mr. Gross concluded, “Our year-to-date performance highlights the strength of our business model. In particular, we believe that our commitment to customer service, coupled with our efficient operating structure and proven growth strategy, will help continue these positive trends for the balance of the year and beyond. Our business model has also helped us successfully acquire and profitably integrate target companies, and this will continue to be a key aspect of our growth strategy. In addition, we are pleased with our initial investment in Strauss Discount Auto and our current expectation is to close by March 31 on the 87% we do not currently own.”

     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, Speedy Auto Service by Monro, Mr. Tire and Tread Quarters Discount Tires. The Company currently operates 626 stores and has 16 dealer locations 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 and Michigan. Monro’s stores provide a full range of services for exhaust systems, brake systems, steering and suspension systems, tires and many vehicle maintenance services.

          The statements contained in this press release that are not historical facts may contain statements of future expectations and other forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed. These factors include, but are not necessarily limited to, product demand, dependence on and competition within the primary markets in which the Company’s stores are located, the need for and costs associated with store renovations and other capital expenditures, the effect of economic conditions, the impact of competitive services and pricing, product development, parts supply restraints or difficulties, industry regulation, risks relating to leverage and debt service (including sensitivity to fluctuations in interest rates), continued availability of capital resources and financing, risks relating to integration of acquired businesses and other factors set forth elsewhere herein and in the Company’s Securities and Exchange Commission filings, including the report on Form 10-K for the fiscal year ended March 26, 2005.

MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Amounts in thousands, except per share amounts)

	Quarter Ended Fiscal December
	2005		2004			% Change
			Restated
Sales	$	90,188	$	80,522			12.0	%
Cost of sales, including distribution and occupancy costs		55,300		48,897			13.1
Gross profit		34,888		31,625			10.3
Operating, selling, general and administrative expenses		27,463		25,372			8.2
Operating income		7,425		6,253			18.7
Interest expense, net		845		638			32.4
Other expense (income), net		30		(61	)
Income before provision for income taxes		6,550		5,676			15.4
Provision for income taxes		2,489		2,157			15.4
Net income	$	4,061	$	3,519			15.4
Diluted earnings per common share	$	.27	$	.24			12.5	%
Weighted average number of diluted shares outstanding		15,038		14,554
Number of stores open (at end of quarter)		625		611

MONRO MUFFLER BRAKE, INC.
Financial Highlights
(Unaudited)
(Amounts in thousands, except per share amounts)

	Nine Months Ended Fiscal December
	2005		2004		% Change
			Restated
Sales	$	280,454	$	256,290		9.4	%
Cost of sales, including distribution and occupancy costs		165,119		150,764		9.5
Gross profit		115,335		105,526		9.3
Operating, selling, general and administrative expenses		81,142		76,226		6.4
Operating income		34,193		29,300		16.7
Interest expense, net		2,537		1,811		40.1
Other expense, net		333		231
Income before provision for income taxes		31,323		27,258		14.9
Provision for income taxes		11,903		10,359		14.9
Net income	$	19,420	$	16,899		14.9
Diluted earnings per share	$	1.30	$	1.16		12.1	%
Weighted average number of diluted shares outstanding		14,970		14,530

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

	December 24,		March 26,
	2005		2005
Assets
Current assets Cash	$	—	$	888
Inventories		63,438		59,753
Other current assets		16,825		16,878
Total current assets		80,263		77,519
Property, plant and equipment, net		163,132		164,309
Other noncurrent assets		51,450		43,157
Total assets	$	294,845	$	284,985
Liabilities and Shareholders’ Equity
Current liabilities	$	47,498	$	50,361
Long-term debt		47,178		55,438
Other long-term liabilities		10,640		11,697
Total liabilities		105,316		117,496
Total shareholders’ equity		189,529		167,489
Total liabilities and shareholders’ equity	$	294,845	$	284,985

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