Monro (MNRO) risk factors, FY2026 10-K

Risks Related to our Business

1. 01We operate in the highly competitive automotive repair industry
2. 02Changes in economic conditions that impact consumer spending could harm our business
3. 03We are subject to cycles in the general economy and customers’ use of vehicles and seasonality, which may impact demand for our products and services21% rewritten
4. 04Adoption of electric vehicle technology may adversely affect the demand for our services
5. 05Our business is affected by advances in automotive technology
6. 06We depend on our relationships with our vendors for certain inventory and those vendors may be unable to perform under our existing agreements with them45% rewritten
7. 07Our business may be negatively affected by the risks associated with vendor relationships and international trade22% rewritten
8. 08Changes in the U.S. trade environment, including the imposition of import tariffs, could adversely affect our consolidated results of operations and cash flows
9. 09If we are unable to generate sufficient cash flows from our operations, our liquidity will suffer and we may be unable to satisfy our obligations
10. 10our exposure to certain financial market risks, including fluctuations in interest rates associated with bank borrowings could become more significant82% rewritten
11. 11Covenants in the agreements governing our Credit Facility restrict the manner in which we conduct our businessNew
12. 12plan for or react to market conditions or otherwise execute our business strategies
13. 13We depend on the services of our key executives
14. 14Failure to protect our brands and our reputation could have a material adverse effect on our business and results of operations

Legal, Regulatory and Technological Risks

1. 15Our industry is subject to environmental, consumer protection and other regulation
2. 16We are involved in litigation from time to time arising from the operation of our business and, as such, we could incur substantial judgments, fines, legal fees, or other costs
3. 17Business interruptions and unavailability of products would negatively impact our store operations, which may have a material negative effect on our business
4. 18Any interruption to the operability or breach of our computer systems could damage our reputation and have a material adverse effect on our business and results of operations
5. 19Data security breaches impacting confidential customer and/or employee information may result in penalties, negative publicity, loss of customer relationships, litigation, and increased costs, which would have a material adverse effect on our business33% rewritten
6. 20We may not have the resources or technical expertise to anticipate or prevent rapidly evolving types of cyber-attacks. Attacks have been targeted at us, our vendors, suppliers and customers, or at others who have entrusted us with information

Risks Related to our Strategic Initiatives

1. 21We may not be successful in integrating new and acquired stores
2. 22If our capital investments in remodeling existing or acquired stores, building new stores, and improving technology do not achieve appropriate returns, our competitive position, financial condition, and results of operations could be adversely affected65% rewritten
3. 23We are currently making, and expect to continue to make, investments in technology to improve customer experience and certain management systems. The effectiveness of these investments can be less predictable than remodeling stores and might not provide the anticipated benefits or desired rates of returnNew
4. 24Any impairment of goodwill, other intangible assets or long-lived assets could negatively impact our results of operations
5. 25Planned store closings have resulted in acceleration of costs and future store closings could result in additional costs83% rewritten

Risks Related to Our Common Stock

1. 26The amount and frequency of our common stock repurchases and dividend payments may fluctuate or cease28% rewritten
2. 27The multi-class structure of our capital stock has the effect of concentrating power with holders of our Class C Convertible Preferred Stock, which severely limits the ability of our common shareholders to influence or direct the outcome of matters submitted to our shareholders for approval
3. 28Provisions in our certificate of incorporation, bylaws, and shareholder rights plan may prevent or delay an acquisition of us, which could decrease the price of our common stock41% rewritten
4. 29the advance notice required by our bylaws for any shareholder who wishes to bring business before a meeting of shareholders or to nominate a director for election at a meeting of shareholders
5. 30The market price of our common stock may be volatile and could expose us to shareholder action including securities class action litigation
6. 31We rely on an adequate supply of skilled field personnel
7. 32Challenging financial market conditions and changes in long-term interest rates could adversely impact the funded status of our pension plan21% rewritten