Monro Muffler posts 30 percent jump in 2Q profit

Monro Muffler fiscal 2nd-quarter profit jumps on strong revenue; lifts outlook

• On 11:20 am EDT, Monday October 26, 2009

ROCHESTER, N.Y. (AP) -- Monro Muffler Brake Inc., which provides car repair and tire services, said Monday its fiscal second-quarter profit jumped 30 percent, as frugal drivers opted to have their cars repaired rather than buy new ones.

The company said it earned $10 million, or 49 cents per share for the quarter ended Sept. 26. It earned $7.7 million, or 38 cents per share, in the same quarter last year.

Revenue rose 13.9 percent to $136.6 million from $119.9 million a year earlier due largely to strong in-store execution and effective advertising and marketing campaigns.

Analysts surveyed by Thomson Reuters were looking for a profit of 47 cents per share with revenue of $134.1 million.

Monro said it opened four locations and closed five others during the quarter, bringing the total store count to 739 stores.

Repair shops like Monro have largely seen better business in the economic downturn as strapped consumers choose to hold onto their old cars and repair them rather than buy new vehicles. The company said sales at stores open at least a year rose 7.4 percent during the quarter.

Monro also lifted its full-year earnings outlook.

Shares added 99 cents, or 3.1 percent, to $33.30 in morning trading.