Shareholders of cafeteria operator Luby’s Inc. will receive nearly 4% more from the company’s liquidation than had been previously projected, a per-share bump of 15 cents, according to management.
In a securities filing, the company attributed the sweetened forecast to a combination of higher-than-expected proceeds from recent sales and improved results from assets that have not yet been divested.
Luby’s said it sold four properties during June for $9.1 million in total. The transactions raised the number of restaurants sold to date in fiscal 2021 to seven.
It agreed to sell its Fuddruckers fast-casual burger business in mid-June to Black Titan Franchise Associates, an affiliate of a current franchisee, for a buyer’s note projected to be worth $18.5 million. Nine units operated by Luby’s were excluded from the deal.
A few days later, it struck a deal to sell rights to the Luby’s Cafeterias brand and 32 restaurants to Calvin Gin for $28.7 million.
With the various transactions, Luby’s holdings have been reduced to 55 Luby’s Cafeterias, the nine Fuddruckers units and contracts to 27 noncommercial foodservice operations managed by its Culinary Contract Services business.
The remaining operations generated sales of just under $19 million for the third quarter ended June 3. The company’s losses for the period deepened to about $25 million.
It did not provide same-store sales calculations.
After failing to find a buyer, Luby’s announced in September that it would liquidate.