Consumers are keeping their cars longer than they used to, so they’re spending more on maintenance and repair. It’s a thesis we’ve discussed before on Mad Money. You might remember Cramer recommending Monro Muffler Brake as a play on the trend.
But if times are as tough as we say, wouldn’t people also cut back on maintenance as well, if they need to save money? Chairman and CEO Rob Gross said yes, but his mechanic shops are getting 2-4 visits a year per customer just for oil changes. Plus, drivers are looking for ways to maximize fuel efficiency in their cars. So they’re coming in for regular checks up for tire inflation, air fuel filters and the like.
Gross said that MNRO is also picking up share as mom-and-pop shops struggle with this economy and go out of business. It’s part of the reason his company has acquired nine competitors over the past six years.
Monro is down $5 from its high and it’s trading at just $20. “What’s not to like?” Cramer said.
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