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Luby's shows growth in 1Q

Luby's shows growth in 1Q

Four new combination locations opened in fiscal 2014

Luby’s Inc. on Wednesday said guest traffic was up for its primary brands during the Nov. 19-ended first quarter, and its combined Luby’s/Fuddruckers locations are showing growth potential.

Same-store sales declined 0.1 percent systemwide, dragged down by a 6.7-percent decline at the Cheeseburger in Paradise brand. Luby’s has closed about 15 Cheeseburger in Paradise locations over the past year and converted several more to Fuddruckers.

The company also closed the last two Koo Koo Roo Chicken restaurants prior to the start of fiscal 2015.

However, primary brands Luby’s and Fuddruckers showed positive same-store-sales during the quarter.

Guest traffic was up 0.1 percent at Luby’s, with average check also up 0.1 percent. At Fuddruckers, guest traffic was up 1.9 percent, but that was offset by a 1.7 percent decline in average spend per guest.

Same-store sales increased 2.4 percent at the company’s first combination location, which includes a Luby’s Cafeteria side-by-side with Fuddruckers. It was the only combination unit open long enough to qualify for comparable-sales status. Four new combination locations opened in fiscal 2014, the company said.

“Our five combo locations contributed 6.3 percent to our total restaurant sales in the first quarter [of] fiscal 2015,” said Chris Pappas, Luby’s Inc.’s president and chief executive. “These locations, in the aggregate, are meeting our sales expectations and represent a strategic growth driver for our company.”

Houston-based Luby’s Inc. operates 175 restaurants, including 94 Luby’s Cafeterias, 72 Fuddruckers, eight Cheeseburger in Paradise units and one Bob Luby’s Seafood Grill restaurant. Another 111 Fuddruckers are franchised and 31 are licensed locations.

Luby’s Culinary Contract Services division provides foodservice management to 26 hospitals, schools or corporate dining locations.

1Q NET LOSS*

Result: -$2 million, or -7 cents per share
(from $0.6 million, or 2 cents per share)

1Q REVENUE

Result: $86.9 million
% Increase: 1% (from $85.8 million)

1Q SAME-STORE SALES

% Decrease systemwide: 0.1%


% Increase at Luby’s Cafeteria units: 0.2%

 

% Increase at Fuddruckers: 0.2%

 

% Increase at combination restaurants: 2.4%


% Decrease at Cheesburger in Paradise: 6.7%


Source: Company report

*Excluding special items



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Luby's 3Q net income falls 29.7%
Luby’s net income dives 85% in 4Q
More restaurant finance news

Contact Lisa Jennings at [email protected]
Follow her on Twitter @livetodineout

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