US-based foodservice company Luby’s has reported total sales of $86m in the third quarter (Q3) ending 6 June 2018, a 3.1% decrease compared to last year.
Loss from continuing operations of the company in Q3 was $14.1m, compared to $4m for the same period in the previous year.
The restaurant company also reported a $5.6m decrease in adjusted EBITDA, however culinary contract services sales for Q3 increased to $2.1m.
Same-store sales declined by 0.9% and total restaurant sales decreased by 5.8%, while combo location sales dropped by 3.3% versus third quarter fiscal 2017.
Luby’s president and CEO Chris Pappas said: “We are disappointed with our third quarter financial results. While we have been intensely focused on delivering superior service, excellent food quality, and variety at compelling values, all contributing to positive same-store sales at our Luby’s Cafeterias brand, our overall cost increases have exceeded our ability to grow restaurant sales quickly enough.
“However, our iconic restaurant brands remain well positioned for the long-term to enhance our financial performance.
“At this juncture, it is necessary for us to critically evaluate again each of our locations to determine which are best positioned for future investment and growth.”
The company’s franchise revenue decreased by 2.2% to $33,000 for Q3 due to the decrease in franchise royalty income related to a net decrease of four operating franchise locations compared to the year beforehand.
Pappas noted: “We previously announced plans to sell 14 properties which are expected to generate $25m in proceeds. We are committed to these property sales and plan to accelerate and expand upon this asset sales programme with up to an additional $20m in asset sales; the proceeds from this programme will be used to reduce our debt.”
Luby’s currently operates 160 restaurants under various brands including 86 Luby’s Cafeterias, 67 Fuddruckers locations and seven Cheeseburger in Paradise restaurants.