Lubys, Inc. operates as a multi-brand restaurant company in the United States. It operates through three segments: Company-Owned Restaurants, Franchise Operations, and Culinary Contract Services. The companys primary brands include Lubys Cafeteria, Fuddruckers - Worlds Greatest Hamburgers, and Lubys Culinary Contract Services; and other brands comprise Cheeseburger in Paradise and Bob Lubys Seafood. The company was founded in 1947 and is based in Houston, Texas.
LUB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Lubys Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Lubys Inc ranked in the 5th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for LUB, they are:
Its compound free cash flow growth rate, as measured over the past 5.09 years, is -0.18% -- higher than merely 8.89% of stocks in our DCF forecasting set.
The company has produced more trailing twelve month cash flow than merely 2.7% of its sector Consumer Cyclical.
Lubys Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -3.55. This coverage rate is greater than that of only 14.5% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as LUB, try STKS, TEN, WH, AGS, and AMTY.
Luby's, Inc. ("Luby's" or the "Company") (NYSE: LUB), today announced that the Company has entered into an agreement to franchise 13 of its currently Company owned Fuddruckers stores to Black Titan Holdings, LLC, an affiliate of successful food service entrepreneur Nicholas M. Perkins. Specific terms of the transaction were not disclosed.
Luby's, Inc. (NYSE: LUB) ("Luby's"), is offering Christmas cheer with Holiday Packages so you can spend time with your family and friends while Luby's does the cooking. Holiday Packaged offerings can range from full-blown meal packages starting at $69.95, to individual sides, entrees, and deserts, and even a Trimmings Package to accompany your home cooked meals for $29.95. Call 1-877-GO-LUBYS or order online at www.lubys.com.
Many prominent investors, including Warren Buffett, David Tepper and Stan Druckenmiller, have been cautious regarding the current bull market and missed out as the stock market reached another high in recent weeks. On the other hand, technology hedge funds weren’t timid and registered double digit market beating gains. Financials, energy and industrial stocks aren’t doing […]
Luby's, Inc. (NYSE: LUB) ("Luby's" or the "Company"), – Just in time for the holiday rush, Luby's is offering a homebound solution for fans of its fresh, home-style fare. The landmark cafeteria chain's Holiday Meal Packages are designed to make catering home and office celebrations a snap.
Luby's. Inc. ("Luby's" or the "Company") (NYSE: LUB), announced that, at the initiation of the Special Committee of the Board of Directors, the Company has retained JLL (NYSE: JLL) to assist it in the orderly sale of the Company's real estate holdings as part of its previously announced sale of operating divisions and assets, including real estate assets. The Company currently operates 60 Luby's Cafeteria restaurants and 24 Fuddruckers restaurants.