Luby's +14% as board panel weighs strategic alternatives

|About: Luby's, Inc. (LUB)|By:, SA News Editor

Luby's (NYSE:LUB) has jumped 14.4% after hours after news that it's formed a special committee to review strategic alternatives.

The new committee is made up of independent directors charged to "identify, examine, and consider a range of strategic alternatives available to the Company with the objective of maximizing shareholder value." It will be co-chaired by Gerald Bodzy and Randolph Read.

The company says it still plans to transition certain company-owned Fuddruckers restaurants to franchises.

Earlier in the fiscal year, it entered into a new five-year credit agreement, and added Todd Coutee as chief operating officer. In asset divestitures, it says it's sold property generating $35.9M in proceeds, as well as closed 39 underperforming restaurants.

"Our efforts are well under way to grow guest traffic and sales, as well as to establish an appropriate cost structure across the business," says CEO Chris Pappas. "We have already reduced our general and administrative expense by over 10% as we right-size the overhead needed to support our business operations, with additional plans to further reduce our cost structure in 2020."

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