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Luby's

Financing

How Luby's turned a profit at its restaurants during the pandemic

Sales and profits plunged last quarter and many restaurants remain closed, but cost cuts led to improved margins at open locations.

Operations

Luby’s closes 35 more restaurants, cuts majority of HQ staff

The salaries of the remaining home-office employees have been cut 50%.

The diversified restaurant company posted a net loss for its Q1 despite rises in traffic and sales.

The company posted a decline in comps on a drop in traffic for all three of its restaurant brands and announced an outsourcing of several headquarters functions.

The multiconcept operator has begun the process of evaluating “strategic alternatives.”

Comps slipped by an average of 4% across its three restaurant brands.

Get Top 500 data: sales, units and YOY change, average unit volume, and company/franchise units, as well as Technomic’s analysis, growth forecast and more.

The restaurant company, which has closed 27 units in the past year, saw same-store sales decline 3.3% in the recent quarter.

Executives, who say they’re in the midst of a turnaround, plan to focus on marketing to reverse a 5.5% drop in same-store sales for Q1.

Bandera Partners lost its bid to remake the struggling chain’s board at the annual shareholder meeting.

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