AutoZone, Inc.

AutoZone is now spending heavily to grow — a record store year and double-digit repair-shop gains — while its do-it-yourself shopper bought less. Everything turns on whether the new stores and repair shops pay off before that customer comes back. How much of FY2026 sales growth came from price rather than volume?

• AutoZone's core retail customer is buying less.

  Domestic DIY sales went backwards in Q4 FY2026 and traffic has fallen more than 3% a quarter for a year, which management puts down to a stretched shopper deferring repairs. That leaves growth resting on price rather than more visits. How does DIY traffic this year compare with the last five years?

• Repair shops, not car owners, are now doing the growing.

  Commercial sales rose about 11% for FY2026 and held double digits even in the weakest quarter. Repair shops are roughly a third of domestic sales now and earn less per dollar than retail, so the mix itself is a drag the company must outrun.

• The spending is landing years before the payoff.

  AutoZone opened more stores this year than ever, and a new store takes four to five years to earn its keep. Return on capital has fallen from 47% to 31%, and management's answer has been to trim its FY2028 opening plan and slow Brazil. When do the stores opened in FY2026 start adding to profit?