September 13, 2019
Luby’s Inc., the national restaurant chain owner and operator, formed a new Board Special Committee to take measures to “right-size its corporate overhead” and identify “strategic alternatives . . . with the objective of maximizing shareholder value,” according to a statement. Local media took this one step further, suggesting a possible corporate sale could be under consideration.
Headquartered in Houston, Luby’s operates 121 restaurants nationally, including 78 Luby’s Cafeterias, 42 Fuddruckers and one Cheeseburger in Paradise restaurant, as well as operating as a franchisor for 103 Fuddrucker franchise locations in North and South America.
The Houston Chronicle pointed out that the company, known for its cafeteria-style comfort foods, has “struggled to draw diners in recent years,” due to increasing competition from fast-casual restaurants, and changing consumer tastes. The company’s Q3 figures include a 15.7% drop in sales and a decrease of guest traffic of 1.2% at Luby’s Cafeterias, and 8.7% at Fuddruckers restaurants.
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