US-based restaurant company Luby’s has reported total sales of $177.34m for the first half (H1) ending 13 March 2019, compared to $195.29m for the same period of 2018.
Net income (loss) of the company was $0.85m for the first half of 2019, compared to $17.10m during the same period of 2018.
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In addition, the company has reported total sales of $74.42m for the second quarter of 2019, compared to $81.79m for the same period of 2018.
Same-store sales declined by 3.3% and total restaurant sales decreased by 12.1%, while Culinary contract services sales increased by 28% to $7.5m during the second quarter.
The restaurant company also reported a $2.9m increase in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA).
Luby’s president and CEO Chris Pappas said: “We continue to make positive progress through our turn-around efforts to reduce costs while re-positioning our brands for improved sales and increased store-level profit efficiencies to drive better financial results in 2019 and beyond.
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By GlobalData“Since the beginning of the second quarter last year, we have closed 27 underperforming units and through our $45m asset sales programme that began last year, we have generated proceeds of $34.7m.
“Cost management remains a primary focus throughout our organisation and even after adjusting for the number of closed stores, our cost run-rate came down in the second quarter.
“Store-level profit as a percentage of restaurant sales improved in the second quarter to 10.7% compared to 7.7% in the same quarter last year due primarily to effective cost controls to reduce food and supply expenses, efficient hourly labour scheduling, and reductions in repairs and maintenance expense.
“While our same-store sale results for the quarter are below our expectations for the full year, they improved sequentially at both our Luby’s Cafeteria and Fuddruckers brands.”
Furthermore, the company closed three Luby’s Cafeterias, six Fuddruckers Restaurants, and one Cheeseburger in Paradise location during the second quarter bringing the total count to 136.
