HOUSTON, TX - July 15, 2019 - Luby’s, Inc. (NYSE: LUB) (“Luby’s”) today announced unaudited financial results for its twelve-week third quarter fiscal 2019 referred to as “third quarter.” Comparisons in this earnings release are for the third quarter compared to third quarter fiscal 2018.
Third Quarter Key Metrics
Same-store sales decreased 4.0%
Culinary Contract Services sales increased by 14% to $7.6 million, up from $6.6 million and segment profit increased $0.2 million with margins above 10%
Five company owned Fuddruckers restaurants were re-franchised.
Loss from continuing operations of $5.3 million compared to loss of $14.1 million in the third quarter fiscal 2018
Store level profit as a percent of restaurant sales was 10.2%, up from 8.5% -- a 170 basis points improvement (see non-GAAP reconciliation below)
Adjusted EBITDA decreased $0.3 million (see non-GAAP reconciliation below)
Chris Pappas, President and CEO, commented, “Our turn-around plan is two-fold: establishing appropriate cost structures for our business and growing guest traffic and sales. We continue to make progress in efficiently managing restaurant-level costs, resulting in a store level profit improvement, despite the decline in same-store sales in the third quarter. However, we recognize that our turn-around depends on growing guest traffic and sales. While our same-store sales have not yet achieved the improvement we are striving for, we do see a number of positive developments based on our recent efforts and initiatives aimed at growing guest traffic. For instance, at our cafeteria brand, guest traffic has continually trended better throughout the current fiscal year. At both of our core brands, we are providing menu price points that offer compelling everyday value options starting in the $7.00 to $9.00 range, while still including additional premium offerings at higher price points. This value orientation is helping to improve our guest traffic trends and will be central to growing sales.
Our culinary contract services business added seven net new locations compared to last year, which are generating incremental sales and profit. This continues to be a terrific segment of our business with significant growth potential. We continue to pursue new clients for our signature offering. In our Fuddruckers franchise system, we made solid progress on our plans to transition to a primarily franchise model outside our core Houston, Texas market: five locations in the San Antonio market transitioned from company-operated restaurants to franchise-operated locations.
The following information was filed by Lubys Inc (LUB) on Monday, July 15, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Form Type: 10-K Annual Report Accession Number: 0000016099-19-000084 Submitted to the SEC: Tue Nov 26 2019 11:11:00 AM EST Accepted by the SEC: Tue Nov 26 2019 Period: Wednesday, August 28, 2019 Industry: Retail Eating Places