MONRO, INC. Revenue Disclosure
Automotive undercar repair, tire replacement sales and tire related services represent most of our revenues. We also earn revenue from the sale of tire road hazard warranty agreements as well as commissions earned from the delivery of tires on behalf of certain tire vendors.
Revenue from automotive undercar repair, tire replacement sales and tire related services is recognized at the time the customers take possession of their vehicle or merchandise. For sales to certain customers that are financed through the offering of credit on account, payment terms are established for customers based on our pre-established credit requirements. Payment terms vary depending on the customer and generally are 30 days. Based on the nature of receivables, no significant financing components exist. Sales are recorded net of discounts, sales incentives and rebates, sales taxes, and estimated returns and allowances. We estimate the reduction to sales and cost of sales for returns based on current sales levels and our historical return experience. Such amounts are immaterial to our consolidated financial statements.
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Revenues |
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(thousands) |
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| 2025 |
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| 2024 |
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| 2023 |
Tires (a) |
| $ | 565,102 |
| $ | 594,465 |
| $ | 635,283 |
Maintenance Service |
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| 329,284 |
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| 357,197 |
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| 356,936 |
Brakes |
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| 157,484 |
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| 175,421 |
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| 178,468 |
Steering |
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| 101,410 |
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| 104,235 |
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| 109,725 |
Batteries |
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| 23,862 |
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| 21,610 |
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| 19,830 |
Exhaust |
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| 16,703 |
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| 19,068 |
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| 22,474 |
Franchise Royalties |
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| 1,489 |
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| 4,793 |
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| 2,666 |
Total |
| $ | 1,195,334 |
| $ | 1,276,789 |
| $ | 1,325,382 |
(a) Includes the sale of tire road hazard warranty agreements and tire delivery commissions.
Revenue from the sale of tire road hazard warranty agreements is initially deferred and is recognized over the contract period as costs are expected to be incurred, typically 21 to 36 months. The deferred revenue balances at March 29, 2025 and March 30, 2024 were approximately $21.0 million and $21.7 million, respectively, of which $14.7 million and $15.2 million, respectively, are reported in Deferred revenue and $6.3 million and $6.5 million, respectively, are reported in Other long-term liabilities in our Consolidated Balance Sheets.
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Changes in Deferred Revenue |
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(thousands) |
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| 2025 |
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| 2024 |
Balance at beginning of period |
| $ | 21,687 |
| $ | 22,354 |
Deferral of revenue |
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| 21,085 |
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| 21,590 |
Recognition of revenue |
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| (21,724) |
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| (22,257) |
Balance at end of period |
| $ | 21,048 |
| $ | 21,687 |
We expect to recognize $14.7 million of deferred revenue related to road hazard warranty agreements during our ending March 28, 2026 and $6.3 million of such deferred revenue .
Under various arrangements, we receive from certain tire vendors, a delivery commission and reimbursement for the cost of the tire that we may deliver to customers on behalf of the tire vendor. The commission we earn from these transactions is as an agent and the net amount retained is recorded as sales.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | May 28, 2025 | Showing above |
| 2024 | May 28, 2024 | |
| 2023 | May 22, 2023 | |
| 2022 | May 23, 2022 | |
| 2021 | May 26, 2021 | |
| 2020 | Jun 12, 2020 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.