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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
Monro, Inc. · 10-Q · Q1 FY2027 · Period ended Jun 27, 2026
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We are exposed to market risk from potential changes in interest rates. As of June 27, 2026, excluding finance leases and financing obligations, we had no debt financing at fixed interest rates, for which the fair value would be affected by changes in market interest rates. Our cash flow exposure on floating rate debt would result in annual interest expense fluctuations of approximately $1.1 million based upon our debt position at June 27, 2026 and approximately $0.6 million based upon our debt position at March 28, 2026, respectively, given a change in SOFR of 100 basis points.
Debt financing had a carrying amount that approximates a fair value of $108.4 million as of June 27, 2026, as compared to a carrying amount and a fair value of $60.0 million as of March 28, 2026.