Luby's Reports Sharp Decline in Q2 Earnings
Restaurant operator Luby's reported earnings that fell sharply in the second quarter, as food cost inflation and consumers tightening their discretionary spending sapped expansion. Profits dropped 81% to just $203,000, or $0.01 per share, from $1.1 million, or $0.04 per share in the year ago period. Revenues, however, were up 10%, to $87.5 million, mainly from the December acquisition of the Cheeseburger in Paradise chain.
Same-store sales at restaurants open at least 18 months, a key retail metric because it eliminates the effects of expansion by measuring organic growth only, fell 0.6% in the quarter.
Luby's runs 94 Luby's Restaurants, 54 Fuddruckers, two Koo Koo Roos, and now 23 Cheeseburger in Paradise restaurants.
The restaurant operator offered full-year earnings guidance of $0.21 to $0.25 per share, which is lower than its prior guidance of $0.27 to $0.30 per share.
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