ROCHESTER, N.Y. -- The board of directors for Monro Muffler Brake has declared a three-for-two stock split of the company's common stock, to be effected in the form of a 50 percent stock dividend.

The stock split will entitle all shareholders of record at the close of business on Dec. 13, 2010 to receive one additional share of the company's common stock for every two shares of common stock held on that date. The additional shares will be distributed to shareholders on or about Dec. 23. Cash will be paid in lieu of issuing fractional shares based on the closing price of the company's common stock on Dec. 13 (as adjusted for the stock split).

Monro has approximately 20 million shares outstanding and, after giving effect to the stock split, will have approximately 30 million shares outstanding.

Following the three-for-two stock split on Dec. 23, it is anticipated that, in declaring the fourth and final quarterly cash dividend in March 2011 for the 2011 fiscal year, the board would ratably reduce the dividend payment from 12 cents per share to 8 cents per share (a reduction of 33 percent) to reflect the stock split (an increase of 33 percent). As a result, the aggregate amount to which each shareholder would be entitled would remain unchanged.

"In addition to increasing our dividend five times in the last five years, we are pleased to announce our third stock split in the last seven years, which we anticipate will enhance the attractiveness of our stock to a wider group of investors and further increase the liquidity of our shares," said Robert Gross, chairman and CEO. "While we remain focused on generating strong organic growth and expanding our market share through opportunistic acquisitions, we are also firmly committed to maximizing shareholder value. Over the past decade, Monro has increased comparable store sales every year. Further, incorporating our estimated diluted earnings per share range from $2 to $2.06 for fiscal 2011, we are on track to generate compound annual earnings growth of approximately 30 percent over the last three years. Both the dividend increase and the stock split underscore the confidence of the Board and management team in the future prospects of the company and our ability to continue to achieve strong, long-term financial performance."