Billionaire investor Carl Icahn isn’t one to go browsing for stocks; instead, he hunts value. 

His latest target, Monro (MNRO), fits the billing, as the regional auto repair giant buckles under pressure, on falling sales, store closures, and years of investor frustration. 

For Icahn, it’s familiar territory, with him spending decades clawing out value from auto parts and service companies, including from the likes of Pep Boys to Federal-Mogul. 

The maverick investors just disclosed a 14.79% stake, sending Monro stock up 15% overnight, indicating a potential turnaround, while others see tired tires.

For savvy investors, this is unlikely to be nostalgia, but more about timing. 

Icahn’s back in the fray, with tools in hand, with its management soon finding out that “routine maintenance” entails a lot more than just trimming costs; it means getting the business roadworthy for real investors again.

Carl Icahn disclosed a 14.8% stake in Monro, sending shares up 15%.

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Who is Carl Icahn?

Carl Icahn is in many ways a quintessential activist investor.

The billionaire built a reputation on scooping up stocks that are beaten down, fixing what’s broken, then selling them when the market still remembers it cares. 

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He invests through Icahn Partners, American Real Estate Partners, and Icahn Management LP, and as of the latest 13F filing, Icahn Capital reported 12 holdings worth $7.89 billion with 6% turnover. 

The stock he owns is U.S.-centric, which are names that he can look to influence, underscoring his contrarian take that “consensus thinking is generally wrong.” 

On top of that, his investing playbook has stayed virtually the same over the past several years, where he finds unloved businesses, imposes discipline, and creates value. 

Icahn Capital top 5 holdings:

  • Icahn Enterprises LP (IEP): 50.47%
  • CVR Energy Inc. (CVI): 23.97%
  • Southwest Gas Holdings Inc. (SWX): 7.11%
  • CVR Partners LP (UAN): 4.69%
  • International Flavors & Fragrances Inc. (IFF): 3.50%

Notable Icahn wins:

  • Netflix (2012-2015): Built a 10% stake at around $58 a share in backing the streaming pivot, then later exited with nearly $1.6 billion in profit.
  • Apple (2013-2016): Pressured Apple’s management for bigger share buybacks, where one tweet from Icahn added $17 billion in market value that day, ultimately walking away with nearly $2 billion in profit.
  • eBay-PayPal Split (2014): Pushed for eBay to spin off PayPal, stating that it would unlock value. The separation went through, and Icahn’s thesis proved correct, as PayPal’s standalone valuation jumped.

Icahn takes aim at a struggling auto chain

Carl Icahn has pulled into a familiar parking lot, and Mr.Market almost instantly took notice.  The billionaire activist just disclosed a sizeable 14.79% stake in Monro, that’s roughly in the $80 million to $85 million ballpark, according to a Nov. 5 SEC filing. 

Shares of the beaten-down auto repair chain surged nearly 15% on the news, which snapped what has been a brutal slide, which saw it dropping 30% year-to-date, and 57% across five years.

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The timing seemed like classic Icahn.

Monro’s fiscal 2025 results showed a worrying 4.9% sales drop, a trend that has carried over the past couple of years. 

It management looks to shutter 145 underperforming stores on the back of heightened labor and materials costs feeding into its margins.

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Over the past couple of years, its bottom line has been deep in the red, with its trailing-twelve-month income at a negative $19.1 million, and a market cap of nearly $458 million. Monro’s sluggish performance has effectively turned it into the kind of story that the fixer-upper Icahn loves.

It’s important to note that the industry mogul already owns Pep Boys and Federal-Mogul through Icahn Enterprises, and with Monro looking to wrap up its dual-class structure before its penultimate 2026 shareholder meeting, the stage is set for a more shareholder-driven comeback.

Quick takeaways on Icahn’s stake:

  • Stake: 14.79% of Monro (4.4 million shares)
  • Average cost: $19.08 per share
  • Market reaction: +15% post-disclosure
  • Store closures: 145 planned in FY2025

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