Worth Watching News for Traders: Luby’s (NYSE:LUB)

On Tuesday Luby’s (NYSE:LUB) started its trading session with the price $2.07 and closed at price of $1.88 by scoring -12.79%. Day range of the stock was $1.82 – $2.1. LUB stock traded with total volume of 65752 shares while the average trading capacity remained 15967 shares.  Earnings per share was $-0.27. LUB has total market capitalization of $57148125.

On Nov. 26, 2019, Luby’s (NYSE:LUB) notified financial results for its fifty-two week fiscal year 2019 and its twelve-week fourth quarter fiscal 2019, which ended on August 28, 2019.  Comparisons in this press release for the fourth quarter fiscal 2019 are referred to as fourth quarter. Comparisons to the fourth quarter fiscal 2018 are to the twelve-week period that ended August 29, 2018.

Fiscal Fourth Quarter Summary:

•           Same-store sales decreased 3.7%; total sales decreased 14.9% to $71.4 million due in large part to operating 22 fewer stores.

•           Net loss was $9.1 million compared to a net loss of $1.9 million in the fourth quarter fiscal 2018 due primarily to store level profit declines and gains on the sale of assets in the prior year.

Chris Pappas, President and CEO, commented, We are not pleased with our shareholder value, same-store sales, guest traffic results, or corporate overhead.  The Special Committee of the Board continues its focus on developing shareholder value initiatives.  Operationally, we made strategic personnel changes in fiscal 2019, including appointment of a new Chief Operating Officer, VP of Marketing, and VP of Information Technology.  Our whole team is working diligently and we are making progress on our turnaround efforts.  Already in fiscal 2020, we have realized improved guest traffic and sales trends.  Additionally, we are transitioning portions of our accounting, payroll, operational reporting, and other back-office functions to a leading multi-unit restaurant outsourcing firm.  We anticipate completing the transition in the first calendar quarter of 2020 and expect to realize additional cost savings and enhanced capabilities from this transition.

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