HOUSTON, March 24, 2020 /PRNewswire/ -- Luby's, Inc.
(NYSE: LUB) ("The Company") announced today that, as a result of
the rapidly evolving COVID-19 pandemic, the Company is taking
additional proactive steps to mitigate negative financial and
operational impacts. Accordingly, it has temporarily suspended all
operations at 29 additional Luby's Cafeterias and 5 additional
Fuddruckers locations as well as our only Cheeseburger in Paradise
location. We currently continue to operate 34 Luby's Cafeterias and
3 Fuddruckers restaurants to serve our guests during these times.
It is our honor to serve our guests and our communities at
our open locations, and we eagerly await the opportunity to reopen
our temporarily suspended locations as soon as conditions
improve.
Also, as the result of the COVID-19 pandemic, the Company will
place more than half of its corporate office general and
administrative staff on furlough and the Company's remaining
general and administrative staff and all senior management and
other salaried employees will have their salaries temporarily
reduced by 50%. The pay cuts are to last until further notice and
will be periodically reassessed as the situation regarding COVID-19
develops. Further, the Company has determined to dramatically
reduce its planned advertising expenses. These cost savings are
intended to partially mitigate the financial impact to the Company
at this time. The Company will continuously adjust its response to
the pandemic until its threat to the Company's operations fades and
its restaurants reopen.
To serve our guests during these times, we will continue to
operate 34 Luby's Cafeterias and 3 Fuddruckers restaurants via
carry-out, drive-thru, online ordering, ordering via our brand
apps, delivery, and third party delivery (depending on location)
via DoorDash.com / FavorDelivery.com / GrubHub /
UberEats.com and Waitr.
As the safety, health and well-being of our guests and employees
are our highest priority, and we are continuing to work diligently
throughout our organization to implement precautionary health
measures for everyone and we have taken important steps to elevate
our focus beyond our customary high standards of sanitation,
cleaning and employee hygiene. The Company is closely reviewing
guidance from the Centers for Disease and Control Prevention (CDC),
as well as local health authorities, and we are following their
guidance to keep people safe.
The number of operating restaurants is subject to change as we
adjust operations in response to the pandemic and governmental
requirements. At this time, neither the duration nor scope of the
disruption can be predicted, therefore, the negative financial
impact to our results cannot be reasonably estimated. We will
provide an update during our Q2 FY2020 earnings announcement.
Please visit our websites for updated information and recommended
guidelines as we continue to assess the situation over the coming
weeks and months: Lubys.com / Fuddruckers.com / Lubysinc.com.
About Luby's
Luby's, Inc. (NYSE: LUB) operated 119 restaurants nationally as
of December 18, 2019: 78 Luby's Cafeterias, 40 Fuddruckers,
one Cheeseburger in Paradise restaurants. At December 18, 2019, Luby's was the franchisor for
97 Fuddruckers franchise locations across the United States (including Puerto Rico), Canada, Mexico, Colombia, and Panama. Luby's Culinary Contract Services
provided food service management to 33 sites at December 18, 2019 consisting of healthcare,
corporate dining locations, sports stadiums, and sales through
retail grocery stores.
This press release contains statements that are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements
contained in this press release, other than statements of
historical fact, are "forward-looking statements" for purposes of
these provisions, including the statements under the caption
"Outlook" and any other statements regarding scheduled openings of
units, scheduled closures of units, sales of assets, expected
proceeds from the sale of assets, expected levels of capital
expenditures, effects of food commodity costs, anticipated
financial results in future periods and expectations of industry
conditions.
Luby's cautions readers that various factors could cause its
actual financial and operational results to differ materially from
those indicated by forward-looking statements made from
time-to-time in news releases, reports, proxy statements,
registration statements, and other written communications, as well
as oral statements made from time to time by representatives of
Luby's. The following factors, as well as any other cautionary
language included in this press release, provide examples of risks,
uncertainties and events that may cause Luby's actual results to
differ materially from the expectations Luby's describes in such
forward-looking statements: general business and economic
conditions; the impact of competition; our operating initiatives;
fluctuations in the costs of commodities, including beef, poultry,
seafood, dairy, cheese and produce; increases in utility costs,
including the costs of natural gas and other energy supplies;
changes in the availability and cost of labor; the seasonality of
Luby's business; changes in governmental regulations, including
changes in minimum wages; the effects of inflation; the
availability of credit; unfavorable publicity relating to
operations, including publicity concerning food quality, illness or
other health concerns or labor relations; the continued service of
key management personnel; and other risks and uncertainties
disclosed in Luby's annual reports on Form 10-K and quarterly
reports on Form 10-Q.
For additional information contact:
Dennard Lascar Investor
Relations
Rick Black / Ken Dennard
Investor Relations
LUB@dennardlascar.com
View original
content:http://www.prnewswire.com/news-releases/lubys-takes-additional-steps-to-mitigate-the-impact-of-covid-19-301028856.html
SOURCE Luby's, Inc.