Thursday Nov 29, 2018
Bandera Partners has proposed new Board members for Luby's.
One can see the price of the stock bounced to the upside on this news. Bandera Partners note that Luby's hassold $88 M worth of real estate which is twice the current market capitalization of the company. Those assets are gone forever and the money has been used to pay down debt. And stores are closing. It is hard to see how revenues increase that way.
But this may be a lost cause without a complete re think of the business model. One observer notes that the cafeteria concept is dead.
A few decades back cafeterias were popular with the senior set but that group may not exist any more.
If you can think of a way to re-work Luby's I suspect the Board would like to hear from you.