8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):   June 10, 2008

Luby's, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-08308	74-1335253
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(IRS Employer Identification Number)

	13111 Northwest Freeway, Suite 600 Houston, Texas 77040
(Address of principal executive offices, including zip code)

	(713) 329-6800
(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions.

* Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

* Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

* Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

* Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02  Results of Operations and Financial Condition.

On June 10, 2008, the Company released a press release announcing the results of the third quarter ended May 7, 2008.  A copy of that release is attached as Exhibit 99.  The information and exhibit furnished under Item 2.02 of this Current Report on Form 8-K shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.

Item 9.01. Financial Statements and Exhibits.

Exhibit   99             Press release dated June 10, 2008

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

LUBY'S, INC.

(Registrant)

Date:	June 10, 2008	By:	/s/ Christopher J. Pappas
			Christopher J. Pappas
			President and Chief Executive Officer

EX-99

For Immediate Release        

For additional information contact:

    Rick Black, 713-329-6808      

Luby’s Announces Third Quarter Fiscal 2008 Results

New Replacement Restaurant Expected to Open in Houston in July 2008

New Restaurant in North Houston Expected to Open in July 2008

Same-Store Sales Declined 3.3%

HOUSTON, TX – June 10, 2008 – Luby’s, Inc. (NYSE: LUB) today announced unaudited financial results for the third quarter of fiscal 2008, which ended on May 7, 2008.

Third Quarter Fiscal 2008 Highlights:

·Culinary contract services sales increased to $1.8 million compared to $0.4 million in the same quarterlast year

·Restaurant sales were $72.8 million, a decrease of 4.1% compared to last year, approximately 0.8% of the decline relates to the net effect of sales from closed stores in the prior year partially offset by new store sales in the current year

·Store level profit, which the Company defines as restaurant sales minus costs of food, payroll and relatedcosts and other operating expenses, were $10.3 million, or 14.3% compared to $14.3 million, or 18.9% last year

·Same-store sales, which includes 121 units, declined 3.3% in the third quarter compared to the same quarter last year

Total sales decreased $1.6 million, or 2.1% in the third quarter fiscal 2008 to $74.6 million, compared to $76.2 million in the same quarter last year. Income from continuing operations in the third quarter was $1.0 million, or $0.03 per diluted share, compared to $3.9 million, or $0.14 per diluted share in the same quarter last year.

“Despite an extremely challenging consumer environment, our team continued to operate well in the field,” said Chris Pappas, president and CEO. “The restaurant industry remains under pressure from a number of economic factors which include higher gasoline prices, rising commodity costs and in general, negative economic news. The continued rise in gasoline prices is having an impact on how consumers eat out and at what frequency, as evidenced by the decline in the consumer confidence index. While our restaurant sales declined during the third quarter, our team managed food and labor costs well in a difficult environment. We remain confident that our long-term strategic plan to enhance and grow the Luby’s brand will optimize our competitive value proposition to the market and enhance shareholder value.”

Food costs decreased approximately $0.2 million, or 1.2%, in the third quarter fiscal 2008 compared to the same quarter last year. Food costs as a percentage of restaurant sales increased to 27.4% in the third quarter fiscal 2008 from 26.6% in the third quarter last year. Food commodity costs increased in most categories with oils and cheese having the greatest impact on food costs, partially offset by lower produce prices.

Payroll and related costs decreased $0.1 million in the third quarter fiscal 2008 compared to the same quarter last year. Payroll and related costs as a percentage of restaurant sales increased to 34.8% in the third quarter fiscal 2008 from 33.5% in the third last year, primarily due to the lower sales level.

Other operating expenses primarily include restaurant related expenses for utilities, repairs and maintenance, advertising, insurance, supplies, services and occupancy costs. Other operating expenses increased by approximately $1.2 million, or 7.6%, in the third quarter fiscal 2008 compared to the same quarter last year. As a percentage of restaurant sales, other operating expenses increased to 23.5% in the third quarter fiscal 2008 from 21.0% last year. Other operating expenses increased primarily due to 1) an approximate $0.6 million increase in repairs and maintenance expenses focused on improving the appearance and functionality of the cafeterias for the guests and employees; and 2) an approximate $0.8 million increase in utility expense resulting from higher utility rates.

Opening costs were approximately $0.2 million in the third quarter fiscal 2008 and reflects the labor, supplies, occupancy, and other costs necessary to support the unit through its opening period.

Cost of culinary contract services increased by approximately $1.2 million in the third quarter fiscal 2008 compared to the same quarter last year. This increase was related to the food, labor and other operating expenses associated with the increase in revenue for this line of business.

Depreciation and amortization expense increased approximately $0.4 million, or 10.6%, in third quarter fiscal 2008 compared with the same quarter last year due to higher depreciation resulting from new restaurant openings and existing restaurant upgrades and remodels.

General and administrative expenses include corporate salaries and benefits related costs, including restaurant area leaders, share-based compensation, professional fees, travel and recruiting expenses and other office expenses. General and administrative expenses increased by approximately $0.4 million, or 7.3% in the third quarter fiscal 2008 compared to the same quarter last year. As a percentage of total sales, general and administrative expenses increased to 7.7% in the third quarter fiscal 2008, from 7.0% last year. The increase was primarily due to an approximate $0.4 million increase in corporate salary expense related to staffing costs to support the culinary contract services business and other departments to support the Company’s strategic growth plan.

Company Outlook

The Company expects to open one replacement restaurant and one new restaurant in the Houston area in July 2008. Additionally, the Company has plans to open two to three new restaurants in calendar year 2008 and initiate new culinary contract services operations in two to three new healthcare facilities.

Conference Call

The company will host a conference call today at 4:00 p.m. Central Time, June 10, 2008, to discuss third quarter fiscal 2008 results. To access the call live, dial 888-755-9496 and use the participant pin code, Lubys (58297), at least 10 minutes prior to the start time, or listen live over the Internet by logging on to www.lubys.com.

About Luby’s

Luby’s operates 123 restaurants in Austin, Dallas, Houston, San Antonio, the Rio Grande Valley and other locations throughout Texas and other states.  Luby’s provides its customers with quality home-style food, value pricing, and outstanding customer service.

Consolidated Statements of Operations (unaudited)

(In thousands except per share data)

	Quarter Ended						Three Quarters Ended
	May 7,			May 9,			May 7,			May 9,
	2008			2007			2008			2007
	(84 days)			(84 days)			(252 days)			(252 days)
SALES
Restaurant sales	$	72,753		$	75,836		$	215,360		$	221,596
Culinary contract services		1,843			363			5,239			489
TOTAL SALES		74,596			76,199			220,599			222,085
COSTS AND EXPENSES:
Cost of food		19,965			20,208			59,560			59,547
Payroll and related costs		25,322			25,396			74,256			74,999
Other operating expenses		17,125			15,921			48,458			49,071
Opening costs		190			—			212			—
Cost of culinary contract services		1,582			395			4,660			561
Depreciation and amortization		4,088			3,698			12,058			10,853
General and administrative expenses		5,711			5,320			18,568			15,344
Provision for (reversal of) asset impairments		—			15			717			205
Net loss on disposition of property and equipment		114			57			209			551
Total costs and expenses		74,097			71,010			218,698			211,131
INCOME FROM OPERATIONS		499			5,189			1,901			10,954
Interest income		231			281			904			693
Interest expense		(58	)		(191	)		(158	)		(582	)
Interest related to income taxes		—			—			1,319			—
Other income, net		308			198			720			607
Income before income taxes and discontinued operations		980			5,477			4,686			11,672
Provision (benefit) for income taxes		(27	)		1,579			(1,435	)		3,789
Income from continuing operations		1,007			3,898			6,121			7,883
Discontinued operations, net of income taxes		(58	)		21			(116	)		(168	)
NET INCOME	$	949		$	3,919		$	6,005		$	7,715
Income per share from continuing operations
basic	$	0.03		$	0.15		$	0.22		$	0.31
assuming dilution		0.03			0.14			0.21			0.29
Loss per share from discontinued operations
basic	$	—		$	—		$	—		$	(0.01	)
assuming dilution		—			—			—			(0.01	)
Net income per share
basic	$	0.03		$	0.15		$	0.22		$	0.30
assuming dilution		0.03			0.14			0.21			0.28
Weighted average shares outstanding:
basic		27,925			26,132			27,739			26,104
assuming dilution		28,042			27,173			28,052			27,171

The following table contains information derived from the Company’s Consolidated Statements of Operations expressed as a percentage of sales.  Percentages may not add due to rounding.

	Quarter Ended						Three Quarters Ended
	May 7,			May 9,			May 7,			May 9,
	2008			2007			2008			2007
	(84 days)			(84 days)			(252 days)			(252 days)
Restaurant sales		97.5	%		99.5	%		97.6	%		99.8	%
Culinary contract services		2.5	%		0.5	%		2.4	%		0.2	%
TOTAL SALES		100	%		100	%		100	%		100	%
COSTS AND EXPENSES:
(As a percentage of restaurant sales)
Cost of food		27.4	%		26.6	%		27.7	%		26.9	%
Payroll and related costs		34.8	%		33.5	%		34.5	%		33.8	%
Other operating expenses		23.5	%		21.0	%		22.5	%		22.1	%
Store level profit		14.3	%		18.9	%		15.3	%		17.2	%
(As a percentage of total sales)
General and administrative expenses		7.7	%		7.0	%		8.4	%		6.9	%
INCOME FROM OPERATIONS		0.7	%		6.8	%		0.9	%		4.9	%

Consolidated Balance Sheets

(In thousands except share data)

	May7,			August 29,
	2008			2007
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	11,728		$	17,514
Short-term investments		5,150			8,600
Trade accounts and other receivables, net		1,687			1,657
Food and supply inventories		2,887			2,574
Prepaid expenses		834			1,398
Deferred income taxes		712			624
Total current assets		22,998			32,367
Property and equipment, net		191,377			185,983
Property held for sale		5,411			736
Long-term investments		9,099			—
Other assets		438			548
Total assets	$	229,323		$	219,634
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	14,926		$	12,882
Accrued expenses and other liabilities		17,018			21,400
Total current liabilities		31,944			34,282
Other liabilities		6,504			7,088
Total liabilities		38,448			41,370
Commitments and Contingencies
SHAREHOLDERS' EQUITY
Common stock, $0.32 par value; 100,000,000 shares authorized;         Shares issued were 28,429,854 and 27,835,901, respectively;         Shares outstanding were 27,929,854 and 26,159,498, respectively		9,098			8,907
Paid-in capital		19,995			43,514
Retained earnings		166,958			161,447
Accumulated other comprehensive loss		(401	)		—
Less cost of treasury stock, 500,000 and 1,676,403 shares, respectively		(4,775	)		(35,604	)
Total shareholders' equity		190,875			178,264
Total liabilities and shareholders' equity	$	229,323		$	219,634

Consolidated Statements of Cash Flows (unaudited)

(In thousands)

	Three Quarters Ended
	May 7,			May 9,
	2008			2007
	(252 days)			(252 days)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	6,005		$	7,715
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for asset impairments, net of gains and losses on property sales		926			648
Depreciation and amortization		12,058			10,853
Amortization of debt issuance cost		61			322
Non-cash compensation expense		169			165
Share-based compensation expense		865			664
Interest related to income taxes		(1,319	)		—
Deferred tax provision		1,400			3,240
Cash provided by operating activities before changes in operating assets and liabilities		20,165			23,607
Changes in operating assets and liabilities:
Decrease in trade accounts and other receivables		162			1,101
Increase in food and supply inventories		(313	)		(100	)
(Increase) decrease in prepaid expenses and other assets		613			(351	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(3,834	)		687
Net cash provided by operating activities		16,793			24,944
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from redemption or maturity of short-term investments		19,600			9,500
Purchases of short-term investments		(25,650	)		(31,877	)
Proceeds from disposal of assets		2,353			1,743
Purchases of property and equipment		(25,350	)		(11,388	)
Net cash used in investing activities		(29,047	)		(32,022	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds received on exercise of stock options		11,243			530
Purchase of treasury stock		(4,775	)		—
Net cash provided by financing activities		6,468			530
Net decrease in cash and cash equivalents		(5,786	)		(6,548	)
Cash and cash equivalents at beginning of period		17,514			9,715
Cash and cash equivalents at end of period	$	11,728		$	3,167
Cash paid for:
Income taxes	$	1,602		$	229
Interest		87			113

The Company wishes to caution readers that various factors could cause its actual financial and operational results to differ materially from those indicated by forward-looking statements made from time to time in news releases, reports, proxy statements, registration statements, and other written communications, as well as oral statements made from time to time by representatives of the Company. Any statements made in this news release and in such oral and written communications other than historical statements, including statements regarding the expected financial performance of the Company’s prototype restaurant, the execution of the Company’s strategic plan, and future openings of new or replacement restaurants are forward-looking statements. Forward-looking statements involve risks and uncertainties, including but not limited to general business conditions, the impact of competition, the success of operating initiatives, changes in the cost and supply of food and labor, the seasonality of the Company’s business, taxes, inflation, governmental regulations, and the availability of credit, as well as other risks and uncertainties disclosed in the Company’s periodic reports on Form 10-K and Form 10-Q.

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