LUBY'S: A LOT ON ITS PLATE

The future of Luby's may be less about baked whitefish and green beans and more about build-your-own burgers and seasoned wedge fries.

Luby's Chief Executive Officer Chris Pappas still believes in the cafeteria chain he has headed since 2001. But these days he is turning much of his attention to Fuddruckers, the fast-casual burger chain the company acquired this summer.

Fuddruckers has 187 restaurants, almost twice the number of Luby's cafeterias. It's also a well-known national brand, unlike the regional Luby's operation, which has struggled in recent years.

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Luby's to Buy Fuddruckers, Magic Brands

Luby's Inc. said Friday it will buy most of the assets of burger chain Fuddruckers Inc., its parent Magic Brands LLC and their affiliates for about $61 million in cash.

The Houston-based cafeteria chain also will assume some of Fuddruckers' obligations, real-estate leases and contracts. It will pay $2.45 million more in cash if it doesn't assume some contracts.

Luby's, which has 96 restaurants, bought the assets in an auction Thursday.

Fuddruckers filed for Chapter 11 bankruptcy protection in April, saying that would ease the company's sale to private-equity firm Tavistock Group for $40 million.

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Luby's closing 25 stores

Luby’s Inc. is closing 25 underperforming stores as part of a plan to improve cash flow and redeploy capital.
The news came as the Houston-based restaurant operator (NYSE: LUB) reported its fourth-quarter 2009 earnings.
Following the closures the company will have 95 restaurant locations remaining, as well as 15 culinary contract service locations.

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Luby’s Reports Fiscal Fourth Quarter 2009 Results

Fourth Quarter Review
 Restaurant sales were $80.2 million, a decrease of $13.8 million compared to the same quarter last
year. This decrease included a $2.1 million net decline in sales related to closed stores, partially
offset by new restaurant sales.
 Same-store sales, from 117 restaurants, decreased approximately 13.6% primarily due to a decline in
guest traffic and partially a result of lower menu prices and value promotions which decreased
average sales per person by 1.2% compared to the prior year.

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Luby’s Announces Third Quarter Fiscal 2009 Results

HOUSTON, TX – June 10, 2009 – Luby’s, Inc. (NYSE: LUB) today announced unaudited financial results for the third quarter of fiscal 2009, a twelve-week period, which ended on May 6, 2009.
Third Quarter Highlights:

Restaurant sales were $66.0 million, a decrease of $6.7 million compared to the same quarter last year; approximately $1.5 million of the reduction in sales related to closed operations partially offset by new restaurant sales.

Culinary contract services revenue increased to $3.0 million in the third quarter compared to $1.8 million in the same quarter last year. The increase was due to culinary contract services operating 13 facilities as of May 6, 2009 compared to operating 9 facilities as of May 7, 2008.

Restaurant sales declined $6.7 million in the third quarter but store level profit declined only $1.4 million due to effective cost management. The Company defines store level profit as restaurant sales minus costs of food, payroll and related costs and other operating expenses.

Same-store sales, which consisted of 118 restaurants, decreased approximately 8.9% due primarily to declines in guest traffic partially offset by higher menu prices. The third quarter fiscal 2009 partially benefited from the favorable timing of Lent in the third quarter. Adjusted for this item, the Company estimated same-store sales declined approximately 9.4% in the third quarter fiscal 2009.