Lubys, Inc. (LUB) Reports Q2 EPS of $0.22, Same Store Sales Down 3.3%

Lubys, Inc. (NYSE: LUB) reported Q2 EPS of $0.22, versus a loss of $0.38 reported last year. Revenue for the quarter came in at $74.42 million, versus $81.79 million reported last year.

• Same-store sales decreased 3.3%
• Culinary Contract Services sales increased by 28% to $7.5 million, up from $5.9 million
• Income from continuing operations of $6.6 million (including $12.7 million in gains on sales of property) compared to loss of $11.5 million in the second quarter fiscal 2018
• Store level profit was 10.7%, up from 7.7% -- a 300 basis points improvement (see non-GAAP reconciliation below)
• Adjusted EBITDA increased $2.9 million (see non-GAAP reconciliation below)

Chris Pappas, President and CEO, commented, "We continue to make positive progress through our turn-around efforts to reduce costs while repositioning our brands for improved sales and increased store-level profit efficiencies to drive better financial results in 2019 and beyond. Since the beginning of the second quarter last year, we have closed 27 underperforming units and through our $45.0 million asset sales program that began last year, we have generated proceeds of $34.7 million.

"Cost management remains a primary focus throughout our organization and even after adjusting for the number of closed stores, our cost run-rate came down in the second quarter. Store-level profit as a percentage of restaurant sales improved in the second quarter to 10.7% compared to 7.7% in the same quarter last year due primarily to effective cost controls to reduce food and supply expenses, efficient hourly labor scheduling, and reductions in repairs and maintenance expense.

"While our same-store sale results for the quarter are below our expectations for the full year, they improved sequentially at both our Luby's Cafeteria and Fuddruckers brands. Our chief operating officer, Todd Coutee, continues to realign our organization by putting the right people in the right positions. Todd and the team are also hard at work at several initiatives to enhance sales at each brand with new everyday value choices, focus on convenience and the dinner meal part, and re-introducing a breakfast service option at several Luby's locations.

"Lastly, as we transition to primarily a franchise model for Fuddruckers, we converted five company-operated Fuddruckers restaurants to franchise-operated restaurants. These restaurants are in the San Antonio market and were transferred in early April to a new franchise operator with prior Fuddruckers experience. We continue to work on additional re-franchising opportunities in markets outside of our home market in Houston, Texas."

For earnings history and earnings-related data on Lubys, Inc. (LUB) click here.

You May Also Be Interested In

• Boost Run posts Q2 revenue of $31.1M, up 270% year over year
• Calidi Biotherapeutics (CLDI) Reports Q2 Loss of $2.94
• Cheetah Net Supply Chain Service Inc. (CTNT) Reports Q2 EPS of $0.04