8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Date of Report (Date of Earliest Event Reported):

October 21, 2008

MONRO MUFFLER BRAKE, INC.

(Exact name of registrant as specified in its charter)

New York	0-19357	16-0838627
(State of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

200 Holleder Parkway, Rochester, New York	14615
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code (585) 647-6400

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

     On October 21, 2008, Monro Muffler Brake, Inc. (the “Company”) issued a press release announcing, among other things, its operating results for the second quarter ended September 27, 2008, as well as estimated comparable store sales and diluted earnings per share for both the third quarter and full year of fiscal 2009. A copy of the press release is furnished herewith.

Item 9.01 Financial Statements and Exhibits

(a)	Not applicable.
(b)	Not applicable.
(c)	The following is a list of exhibits furnished with this Current Report on Form 8-K:

Exhibit No.		Description
	99.1	Press Release regarding results of operations and financial conditions, dated October 21, 2008.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	MONRO MUFFLER BRAKE, INC. (Registrant)
October 23, 2008	By:	/s/ Catherine D’Amico
		Catherine D’Amico
		Executive Vice President – Finance

EX-99.1

Exhibit 99.1

CONTACT:	Robert Gross
	Chairman and Chief Executive Officer
	(585) 647-6400
	Catherine D’Amico
	Executive Vice President — Finance
	Chief Financial Officer
	(585) 647-6400
	Investor Relations:
	Leigh Parrish/Caren Barbara
	Financial Dynamics
	(212) 850-5600

FOR IMMEDIATE RELEASE

MONRO MUFFLER BRAKE, INC. ANNOUNCES RECORD SECOND QUARTER 2009
FINANCIAL RESULTS

~ Total Sales Increase 7.0% to Record $119.9 Million ~
~ Comparable Store Sales Increase 4.5% ~
~ Second Quarter 2009 EPS up 31% to Record $.38 ~
~ Company Raises Full Year 2009 Estimated EPS Range to $1.14 to $1.19 ~

     ROCHESTER, N.Y. — October 21, 2008 — Monro Muffler Brake, Inc. (Nasdaq: MNRO), a leading provider of automotive undercar repair and tire services, today announced record financial results for its fiscal 2009 second quarter ended September 27, 2008.

Second Quarter Results

     Sales for the second quarter of fiscal 2009 increased 7.0% to a record $119.9 million compared to $112.0 million for the second quarter of fiscal 2008. Sales were driven largely by strong in-store sales execution and continued effective advertising campaigns. Comparable store sales increased 4.5% and were at the high end of the Company’s previously estimated range of 3% to 5%. Comparable store sales for the second quarter of fiscal 2009 include a comparable store sales increase of 6.6% for the former ProCare stores. For specific product categories, comparable store sales increased approximately 6% for brakes, 6% for maintenance services, 7% for alignments and 4% for tires.

     The total sales for the quarter included an increase in sales from new stores of $4.0 million. The 19 former Craven and Valley Forge stores acquired in July 2007 and the seven former Broad Elm group stores acquired in January 2008 contributed $3.3 million of the increase. The total sales for these acquired stores were $6.8 million in the second quarter of fiscal 2009 as compared to $3.5 million in the prior year second quarter.

     Gross margin was 42.0% in the second quarter compared to 40.6% in the prior year quarter and was driven primarily by price increases that were implemented in response to increased raw material costs, improved labor productivity and leveraging of fixed occupancy costs included in cost of sales. Total operating expenses were $36.6 million, or 30.5% of sales, compared with 30.4% of sales for the same period of the prior year. For the second quarters of fiscal 2009 and 2008, total operating expenses include amounts that were historically included in Other Income and Expense, primarily related to gains and losses on property disposals, and amortization expense.

     Net income for the second quarter was a record $7.7 million as compared to $6.5 million for the prior year period. Diluted earnings per share for the quarter were a record $.38 and were at the high end of the Company’s previously expected range. This compares to diluted earnings per share of $.29 in the second quarter of fiscal 2008.

     The Company closed four locations during the quarter, ending the second quarter of fiscal 2009 with 709 stores.

First Six Month Results

     For the six-month period, net sales increased 9.4% to a record $240.3 million from $219.7 million in the same period of the prior year. Net income for the first six months of fiscal 2009 was a record $15.5 million, or $.77 per diluted share, compared with $14.7 million, or $.64 per share in the comparable period of fiscal 2008.

     Robert G. Gross, Chairman and Chief Executive Officer stated, “We are pleased to have delivered another strong quarterly performance in which our solid sales execution enabled us to increase our market share and drive continued growth in sales and earnings. We are encouraged by the positive traction that our business has sustained over the past seven months despite the macro conditions that have been challenging for Monro and many of our competitors. Moreover, we are gratified that our customers

continue to return to us as their trusted service provider as tough economic conditions have in many cases caused them to extend the lives of their vehicles, thereby requiring more frequent and larger repairs.”

Company Outlook

     Based on year-to-date performance and current business trends, the Company anticipates third quarter comparable store sales growth to be in the range of 2% to 4% and diluted earnings per share for the third quarter to be in the range of $.27 to $.29, compared to $.25 for the third quarter of fiscal 2008.

      For fiscal 2009, the Company now anticipates sales in the range of $460 million to $465 million and comparable store sales growth of 3% to 4%. The Company has increased its expected full year diluted earnings per share to a range of $1.14 to $1.19, compared to its previously expected range of $1.10 to $1.18. The estimates are based on 20.2 million weighted average shares outstanding and exclude the impact of any potential acquisitions.

     Mr. Gross concluded, “We are encouraged by our solid performance for the first half of our fiscal year and are pleased that our business has continued to perform well into the third quarter, as comparable store sales for October are up approximately 4% as of last weekend, which should guarantee our eighth straight year of comparable store sales gains. We attribute much of our success to date to our low cost business model and to our value-added services, which have been especially appreciated by our consumers during these difficult economic times. In addition, certain macro trends are working in our favor, such as the decrease in new car purchases and the tightening of credit markets for auto loans. However, we recognize that our business is largely tied to overall consumer confidence, and therefore remain cautiously optimistic about our prospects for the rest of the year. Finally, on the acquisition front, we are moving forward on a mid-sized deal and would expect to announce it by the end of this quarter.”

Webcasts and Earnings Conference Call

     The Company will host a conference call and audio webcast, today, October 21, 2008, at 11:00 a.m. Eastern Time. The conference call may be accessed by dialing 800-762-8795 and using the required pass code 3928109. A replay will be available approximately one hour after the recording through Tuesday, October 28 2008, and can be accessed by dialing 800-406-7325. The live conference call and replay can also be accessed via audio webcast at the “Investor Info” section of the Company’s website, located at www.monro.com. An archive will be available at this website through October 28, 2008.

     The Company also announced that it will participate in the Gabelli Auto Aftermarket Conference on November 4, 2009 in Las Vegas, NV at 4:30 p.m. PDT. The presentation and webcast for the aforementioned conference can be accessed via the Company’s website on www.monro.com under the Investor Info link.

About Monro Muffler Brake

     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, Mr. Tire and Tread Quarters Discount Tires. The Company currently operates 709 stores and has 14 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 brake systems, steering and suspension systems, tires, exhaust systems 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 29, 2008.

###

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

	Quarter Ended Fiscal September
	2008			2007			% Change
Sales	$	119,912		$	112,043			7.0	%
Cost of sales, including distribution and occupancy costs		69,511			66,505			4.5
Gross profit		50,401			45,538			10.7
Operating, selling, general and administrative expenses		36,786			33,805			8.8
Intangible amortization		133			141			(5.6	)
(Gain) loss on disposal of assets		(286	)		101			—
Total operating expenses		36,633			34,047			7.6
Operating income		13,768			11,491			19.8
Interest expense, net		1,592			1,255			26.9
Other income, net		(188	)		(155	)		21.2
Income before provision for income taxes		12,364			10,391			19.0
Provision for income taxes		4,692			3,890			20.6
Net income	$	7,672		$	6,501			18.0
Diluted earnings per share	$	.38		$	.29			31.0	%
Weighted average number of diluted shares outstanding		20,230			22,791
Number of stores open (at end of quarter)		709			714

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

	Six Months Ended Fiscal September
	2008			2007			% Change
Sales	$	240,281		$	219,664			9.4	%
Cost of sales, including distribution and occupancy costs		138,991			127,449			9.1
Gross profit		101,290			92,215			9.8
Operating, selling, general and administrative expenses		73,638			66,489			10.8
Intangible amortization		256			263			(2.8	)
(Gain) loss on disposal of assets		(319	)		155
Total operating expenses		73,575			66,907			10.0
Operating income		27,715			25,308			9.5
Interest expense, net		3,112			2,444			27.3
Other income, net		(260	)		(571	)		(54.4	)
Income before provision for income taxes		24,863			23,435			6.1
Provision for income taxes		9,397			8,751			7.4
Net income	$	15,466		$	14,684			5.3
Diluted earnings per share	$	.77		$	.64			20.3	%
Weighted average number of diluted shares outstanding		20,159			22,854

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

	September 27,		March 29,
	2008		2008
Current assets
Cash	$	1,677	$	2,108
Inventories		69,954		66,183
Other current assets		25,594		24,582
Total current assets		97,225		92,873
Property, plant and equipment, net		180,911		184,184
Other noncurrent assets		93,427		93,412
Total assets	$	371,563	$	370,469
Liabilities and Shareholders’ Equity
Current liabilities	$	68,569	$	58,311
Long-term debt		99,250		122,585
Other long term liabilities		13,529		14,725
Total liabilities		181,348		195,621
Total shareholders’ equity		190,215		174,848
Total liabilities and shareholders’ equity	$	371,563	$	370,469