BB&T Capital Markets examines Monro
The 19 Craven Tire & Auto and Valley Forge Tire & Auto Centers stores purchased by Monro Muffler Brake Inc. this past July "are performing in line with expectations," according to a report recently published by BB&T Capital Markets.
At the same time, BB&T officials believe that the ProCare Automotive Service Solutions (now Mr. Tire) stores under Monro ownership "appear to be under the same sales pressure" as Monro's "core operations... we think the consumers' buying habots with respect to automotive repair have been similar to what might be experienced in a more recessionary environment."
Monro acquired 75 ProCare locations for $14.6 million in May 2006.
Overall, BB&T officials believe "there might be a silver lining for Monro to the tough (auto parts) operating environment as it provides further acquisition opportunities as smaller, less adept competitors are often unable to weather the storm."
In the September 2007 issue of Modern Tire Dealer, Monro CEO and President Robert Gross says the Rochester, N.Y.-based chain has the potential to open 1,000 tire stores, in addition to 1,000 Monro service stores, throughout the 17 eastern states in which it does business.
Monro currently has 134 tire stores under the Mr. Tire banner.