The chain had been in the red since the late 1990s.Much of the turnaround can be attributed to newleadership by Pappas Restaurants, which took controlof Luby's in early 2001. Luby's stock jumped to itshighest level in four months on the earnings -- $7.99per share – before settling at $7.73.
Same-store sales increased 5.6% during the quarter to$73.0 million from $69.1 million for the same period.Luby's President & CEO Chris Pappas attributes much ofthe increase to holiday season sales and combinationmeals.
Costs of food and labor as a percent of sales was 53%for the quarter, an improvement from 54.7% last year.In particular, labor costs were significant cut from27.8% last year to 26.1% for the second quarter fiscal2005. However, food costs stayed flat at 26.9% ofsales.
During the second quarter, the restaurant operatorrelocated its corporate headquarters from San Antonioto Houston. In December 2004, it moved into 26,000 sfat 13111 Northwest Freeway, signing a long-term leasefor entire top floor of the six-story, class Bbuilding.
Houston is Luby's largest market with 40 restaurants.In addition to its headquarters facility, the cityhouses its centralized facilities service center,which manages the restaurant assets and oversees allrepairs and maintenance, equipment upgrades,construction and all other asset managementresponsibilities.
The first Houston location opened in 1965, nearly 20years after Luby's opened its first cafeteria in 1947in San Antonio. The chain, which serves homestylefood, now operates 133 restaurants across the nation,but primarily in Texas.
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