8-K

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, 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): March 18, 2009

Luby's, Inc.
(Exact name of registrant as specified in its charter)

Delaware	001-8308	74-1335253
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(IRS Employer Identification No.)

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)

(Former name, former address and former fiscal year, if changed since last report)

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 1.01.     Entry into a Material Definitive Agreement.

On March 18, 2009, Luby's, Inc. (the "Company") entered into an amendment to the Credit Agreement dated July 13, 2007 between the Company and , the lenders party thereto,  Wells Fargo Bank, National Association, as  Administrative Agent; and Amegy Bank, National Association, as Syndication Agent.

This amendment was unanimously approved by the Company's Finance and Audit Committee, which is comprised solely of independent directors.

The foregoing description of the amendment to the Credit Agreements does not purport to be complete and is qualified in its entirety by reference to the amendment to the Credit Agreement, copy of which is attached as Exhibits 4.1 to this Form 8-K and are incorporated herein by reference.

ITEM 2.02.     RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On March 18, 2009, the Company released a press release announcing the results of the second quarter ended February 11, 2009.  A copy of that release is attached as Exhibit 99.1.  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 4.1	Amendment No. 1 dated March 18, 2009 to Credit Agreement dated July 13, 2007, among the Company, the lenders party thereto, Wells Fargo Bank, National Association, as Administrative Agent , and Amegy Bank, National Association, as Syndication Agent
Exhibit 99.1	Luby’s Press release dated March 18, 2009

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:	March 18, 2009	By:	/s/ Christopher J. Pappas
			Christopher J. Pappas
			President and Chief Executive Officer

EXHIBIT INDEX

Exhibit No.		Description
	4.1	Amendment No. 1 dated March 18, 2009 to Credit Agreement dated July 13, 2007, among the Company, the lenders party thereto, Wells Fargo Bank, National Association, as Administrative Agent, and Amegy Bank, National Association, as Syndication Agent
	99.1	Luby’s Press Release dated March 18, 2009

EX-4.1

Exhibit 4.1

FIRST AMENDMENT TO CREDIT AGREEMENT

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is made and entered into as of March 18, 2009 by and among LUBY'S, INC., a Delaware corporation (the “Company”); each of the Lenders which is or may from time to time become a party to the Credit Agreement (as defined below) (individually, a “Lender” and, collectively, the “Lenders”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, acting as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”).

RECITALS

A.        The Company, the Lenders and the Administrative Agent executed and delivered that certain Credit Agreement dated as of July 13, 2007.  Said Credit Agreement, as amended, supplemented and restated, is herein called the “Credit Agreement”.  Any capitalized term used in this Amendment and not otherwise defined shall have the meaning ascribed to it in the Credit Agreement.

B.        The Company, the Lenders and the Administrative Agent desire to amend the Credit Agreement in certain respects.

NOW, THEREFORE, in consideration of the premises and the mutual agreements, representations and warranties herein set forth, and further good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company, the Lenders and the Administrative Agent do hereby agree as follows:

SECTION 1. Amendments to Credit Agreement.

(a)      The definition of “Applicable Rate” set forth in Section 1.01 of the Credit Agreement is hereby amended to read in its entirety as follows:

“Applicable Rate” means, for any day with respect to any ABR Loan or Eurodollar Loan or with respect to the commitment fees payable hereunder, as the case may be, the applicable rate per annum set forth below under the caption “ABR Spread”, “Eurodollar Spread” or “Commitment Fee Rate”, as the case may be, based upon the Total Leverage Ratio as of the most recent determination date:

Total Leverage Ratio	ABR Spread	Eurodollar Spread	Commitment Fee Rate
Category 1: greater than 2.50	0.75	2.50	0.45
Category 2: greater than 1.25 but less than or equal to 2.50	0.50	2.25	0.40
Category 3: greater than 0.50 but less than or equal to 1.25	0.25	2.00	0.35
Category 4: less than or equal to 0.50	0.00	1.75	0.30

For purposes of the foregoing, (i) the Total Leverage Ratio shall be determined as of the end of each fiscal quarter of the Borrower’s fiscal year based upon the Borrower’s consolidated financial statements delivered pursuant to Sections 5.01(a) or (b) and (ii) each change in the Applicable Rate resulting from a change in the Total Leverage Ratio shall be effective during the period commencing on and including the date of delivery to the Administrative Agent of such consolidated financial statements indicating such change and ending on the date immediately preceding the effective date of the next such change; but the Total Leverage Ratio shall be deemed to be in Category 1 at the request of the Required Lenders if the Borrower fails to timely deliver the consolidated financial statements required to be delivered by it pursuant to Sections 5.01(a) or (b), during the period from the deadline for delivery thereof until such consolidated financial statements are received.

(b)      The definition of “Commitment” set forth in Section 1.01 of the Credit Agreement is hereby amended to read in its entirety as follows:

“Commitment” means, with respect to each Lender, the commitment, if any, of such Lender to make Loans and to acquire participations in Letters of Credit hereunder, expressed as an amount representing the maximum aggregate amount of such Lender’s Revolving Exposure hereunder, as such commitment may be (a) reduced or increased from time to time pursuant to Section 2.07 and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04.  The amount of each Lender’s Commitment as of March 18, 2009 is set forth on Schedule 2.01.  The aggregate amount of the Lenders’ Commitments as of March 18, 2009 is $30,000,000.

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(c)      The definition of “Interest Coverage Ratio” set forth in Section 1.01 of the Credit Agreement is hereby amended to read in its entirety as follows:

“Interest Coverage Ratio” means, as of the last day of any fiscal quarter of the Borrower, the ratio of (a) EBITDA for the four fiscal quarters ending on such date to (b) the sum of (i) Interest Expense for such four fiscal quarter period plus (ii) Phantom Amortization for the applicable quarter, determined in each case on a consolidated basis for Borrower and its Subsidiaries.

(d)      A new definition of “Maximum Capex Amount” is hereby added to Section 1.01 of the Credit Agreement, such new definition to read in its entirety as follows:

“Maximum Capex Amount” means, for each fiscal year, the greater of (i) $20,000,000, or (ii) an amount equal to one hundred percent (100%) of the Borrower's EBITDA for the immediately preceding fiscal year; plus any unused availability for Capital Expenditures from the immediately preceding fiscal year (but not from any earlier year).

(e)      The definition of "Permitted Investments" set forth in Section 1.01 of the Credit Agreement is hereby amended by (i) deleting clause (f) in its entirety and replacing it as set forth below, and (ii) by adding a new clause (g) as follows:

(f)       the auction rate securities (debt instruments, tax-exempt, with a long-term maturity for which the interest rate is reset through a "dutch auction" process with interest on such instrument being paid at the end of each such auction period) set forth in Schedule 6.04; and  

(g)       expenditures made in compliance with Section 6.13 hereof.  

(f)      A new definition of “Phantom Amortization” is hereby added to Section 1.01 of the Credit Agreement, such new definition to read in its entirety as follows:

“Phantom Amortization” means, for any fiscal quarter, an amount equal to the outstanding principal balance of the Loans as of the close of business on the last day of such fiscal quarter divided by five (5).

(g)      Section 2.11(a) of the Credit Agreement is hereby amended to read in its entirety as follows:

(a)       The Loans comprising each ABR Borrowing shall bear interest at the lesser of (i) the greater of (x) three and one half percent (3-1/2%) or (y) the sum of the Alternate Base Rate plus the Applicable Rate or (ii) the Ceiling Rate.

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(h)      Section 2.11(b) of the Credit Agreement is hereby amended to read in its entirety as follows:

(b)       The Loans comprising each Eurodollar Borrowing shall bear interest at the lesser of (i) the greater of (x) three and one half percent (3-1/2%) or (y) the sum of the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate or (ii) the Ceiling Rate.

(i)      Section 5.12 of the Credit Agreement is hereby amended to read in its entirety as follows:

SECTION 5.12  Financial Covenants.  The Borrower will have and maintain:

          (a)       Total Leverage Ratio – a Total Leverage Ratio of not greater than 2.75 to 1.00 at all times.

          (b)       Interest Coverage Ratio – an Interest Coverage Ratio of not less than  2.00 to 1.00 as of the end of each fiscal quarter.

(j)      Section 6.13 of the Credit Agreement is hereby amended to read in its entirety as follows:

SECTION 6.13  Capital Expenditures.  The Borrower will not, and will not permit any other Loan Party to, make a Capital Expenditure if, after giving effect to such Capital Expenditure, (x) any Event of Default is then existing or would arise as a result of the applicable Capital Expenditure or (y) such Capital Expenditure, when added with all other Capital Expenditures in such fiscal year, would exceed the applicable Maximum Capex Amount.  Acquisitions permitted under the terms and provisions of Section 6.14 hereof shall not be treated as Capital Expenditures for purposes of this Section.

(k)      Schedule 2.01 of the Credit Agreement is hereby amended to be identical to Schedule 2.01 attached hereto.

(l)       A new Schedule 6.04 is hereby added to the Credit Agreement, such new Schedule to be identical to Schedule 6.04 attached hereto.

(m)      Exhibit B of the Credit Agreement is hereby amended to be identical to Exhibit B attached hereto.

SECTION 2. Amendment Fee. As a condition precedent to the effectiveness of this Amendment, the Borrower shall pay to each Lender an amendment fee in the amount of $7,500.

SECTION 3. Ratification.  Except as expressly amended by this Amendment, the Credit Agreement and the other Loan Documents shall remain in full force and effect.  None of the rights, title and interests existing and to exist under the Credit Agreement are hereby released, diminished or impaired, and the Company hereby reaffirms all covenants, representations and warranties in the Credit Agreement.

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SECTION 4. Expenses.  The Company shall pay to the Administrative Agent all reasonable fees and expenses of its legal counsel incurred in connection with the execution of this Amendment.

SECTION 5. Certifications.  The Company hereby certifies that (a) no material adverse change in the assets, liabilities, financial condition, business or affairs of the Company has occurred and (b) subject to the waiver set forth herein, no Default or Event of Default has occurred and is continuing or will occur as a result of this Amendment.

SECTION 6. Miscellaneous.  This Amendment (a) shall be binding upon and inure to the benefit of the Company, the Lenders and the Administrative Agent and their respective successors, assigns, receivers and trustees; (b) may be modified or amended only by a writing signed by the required parties; (c) shall be governed by and construed in accordance with the laws of the State of Texas and the United States of America; (d) may be executed in several counterparts by the parties hereto on separate counterparts, and each counterpart, when so executed and delivered, shall constitute an original agreement, and all such separate counterparts shall constitute but one and the same agreement and (e) together with the other Loan Documents, embodies the entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes all prior agreements, consents and understandings relating to such subject matter.  The headings herein shall be accorded no significance in interpreting this Amendment.

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NOTICE PURSUANT TO TEX. BUS. & COMM. CODE §26.02

THE CREDIT AGREEMENT, AS AMENDED BY THIS AMENDMENT, AND ALL OTHER LOAN DOCUMENTS EXECUTED BY ANY OF THE PARTIES PRIOR HERETO OR SUBSTANTIALLY CONCURRENTLY HEREWITH CONSTITUTE A WRITTEN LOAN AGREEMENT WHICH REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

IN WITNESS WHEREOF, the Company, the Lenders and the Administrative Agent have caused this Amendment to be signed by their respective duly authorized officers, effective as of the date first above written.

LUBY’S, INC.,
a Delaware corporation
By:	/s/Christopher J. Pappas
	Christopher J. Pappas,
	President and Chief Executive Officer

[signature page to First Amendment to Credit Agreement]

          The undersigned Subsidiaries of the Borrower hereby join in this Amendment to evidence their consent to execution by Borrower of this Amendment, to confirm that each Loan Document now or previously executed by the undersigned applies and shall continue to apply to this Agreement, and to acknowledge that without such consent and confirmation, Lenders would not execute this Agreement.

LUBY’S HOLDINGS, INC.,
a Delaware corporation,
LUBY’S LIMITED PARTNER, INC.,
a Delaware corporation,
LUBCO, INC.,
a Delaware corporation,
LUBY’S MANAGEMENT, INC.,
a Delaware corporation,
LUBY’S BEVCO, INC., and
a Texas corporation
By:	/s/Christopher J. Pappas
	Christopher J. Pappas,
	President and Chief Executive Officer

LUBY’S RESTAURANTS LIMITED
PARTNERSHIP, a Texas limited partnership
By:	Luby’s Management, Inc.,
	a Delaware corporation,
	its general partner
	By:	/s/Christopher J. Pappas
		Christopher J. Pappas,
		President and Chief Executive
		Officer

[signature page to First Amendment to Credit Agreement]

WELLS FARGO BANK, NATIONAL ASSOCIATION, individually and as Administrative Agent
By:	/s/Ben R. McCaslin
Name:	Ben R. McCaslin
Title:	Vice President

[signature page to First Amendment to Credit Agreement]

AMEGY BANK, NATIONAL ASSOCIATION
By:	/s/William B. Pyle
Name:	William B. Pyle
Title:	Senior Vice President

SCHEDULE 2.01

	Revolving
Lender	Commitments
Wells Fargo Bank, National Association	$15,000,000
Amegy Bank, National Association	$15,000,000

COMPLIANCE CERTIFICATE

The undersigned hereby certifies that he or she is the __________________ of LUBY'S, INC., a Delaware corporation (the “Borrower”), and that as such he or she is authorized to execute this certificate on behalf of the Borrower pursuant to the Credit Agreement (the “Agreement”) dated as of July 13, 2007, by and among Borrower, WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, and the lenders therein named; and that a review has been made under his or her supervision with a view to determining whether the Loan Parties have fulfilled all of their respective obligations under the Agreement, the Notes and the other Loan Documents; and further certifies, represents and warrants that to his or her knowledge (each capitalized term used herein having the same meaning given to it in the Agreement unless otherwise specified):

(a)      The financial statements delivered to the Administrative Agent concurrently with this Compliance Certificate have been prepared in accordance with GAAP consistently followed throughout the period indicated and fairly present the financial condition and results of operations of the applicable Persons as at the end of, and for, the period indicated (subject, in the case of quarterly financial statements, to normal changes resulting from year-end adjustments and the absence of certain footnotes).

(b)      As of the date hereof, [no Default or Event of Default] [a Default] has occurred and is continuing.  [If a Default has occurred, specify the details thereof and any action taken or proposed to be taken with respect thereto.]

(c)      The compliance with the provisions of Sections 5.12 and 6.13 as the effective date of the financial statements delivered to the Administrative Agent concurrently with this Compliance Certificate is as follows:

(i)	Section 5.12(a) – Total Leverage Ratio
	Actual	Required
	_____ to 1.00	2.75 to 1.00
(ii)	Section 5.12(b) – Interest Coverage Ratio
	Actual	Required
	_____ to 1.00	2.00 to 1.00

EXHIBIT B

(iii)	Section 6.13 – Capital Expenditures
	Year to Date Actual	Year to Date Permitted
	$_______________	$_______________

(d)        There has been no change in GAAP or in the application thereof since the Effective Date which would reasonably be expected to affect the calculation of the financial covenants set forth in the Agreement or, if any such change has occurred, the effects of such change on the financial statements of the respective Loan Parties are specified on an attachment hereto.

(e)      Since the date of the Agreement, no event has occurred which would be reasonably likely to have a Material Adverse Effect.

DATED as of _____________, 20___.

[SIGNATURE OF AUTHORIZED OFFICER]

EXHIBIT B

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EX-99.1

Exhibit 99.1

Luby’s Announces Second Quarter Fiscal 2009 Results andAmendment to Revolving Credit Facility

HOUSTON--(BUSINESS WIRE)--March 18, 2009--Luby’s, Inc. (NYSE:LUB) today announced unaudited financial results for the second quarter of fiscal 2009, a twelve-week period, which ended on February 11, 2009.

Second Quarter Highlights:

• Restaurant sales were $67.7 million, a decrease of 4.7% compared to the same quarter last year; approximately 1.5% 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.
• Culinary contract services revenue increased to $3.0 million in the second quarter compared to $1.7 million in the same quarter last year. The increase was due to the continued growth in the total number of culinary contract service operating facilities to twelve in the second quarter compared to nine at the end of the same quarter last year.
• Same-store sales, which consisted of 117 restaurants, decreased approximately 3.2% due primarily to declines in guest traffic partially offset by higher menu prices. The second quarter fiscal 2009 benefited from the favorable timing of Thanksgiving at the beginning of the quarter and, to a lesser extent, was adversely affected by the unfavorable timing of Lent, which began after quarter-end. Adjusted for the timing of these two holidays, the Company estimated same-store sales declined 5.0% in the second quarter fiscal 2009.

Same-Store Sales (117 stores)
	Q1FY09		Q2FY09		YTD
Reported	(6.7	%)	(3.2	%)	(4.9	%)
Adjusted	(3.8	%)a	(5.0	%)b	(4.4	%)c

a)	The first quarter fiscal 2009 was adversely affected by the unfavorable timing of Thanksgiving, which occurred after quarter-end, and by the closure of stores related to Hurricane Ike.
b)	The second quarter fiscal 2009 benefited from the favorable timing of Thanksgiving at the beginning of the quarter and, to a lesser extent, was adversely affected by the unfavorable timing of Lent, which began after quarter-end.
c)	Includes both footnotes a & b.

Total sales decreased 2.7% in the second quarter fiscal 2009 to $70.7 million, compared to $72.6 million in the same quarter last year. Culinary contract services sales were $3.0 million in the second quarter compared to $1.7 million in the same quarter last year. Restaurant sales in the second quarter were $67.7 million compared to $71.0 million in the same quarter last year.

Income from continuing operations in the second quarter was $196 thousand, or $0.01 per diluted share, compared to income from continuing operations of $307 thousand, or $0.01 per diluted share in the same quarter last year.

“We are pleased with the sequential and slight year over year store level profit improvement in the second quarter primarily due to enhanced cost controls. While the unprecedented volatility of the overall operating environment continues to pressure sales for most consumer businesses, we remain focused on growing profitability and cash flow from operations at our existing restaurants,” said Chris Pappas, President and CEO.

Food costs decreased approximately $1.1 million in the second quarter fiscal 2009 compared to the same quarter last year due to lower sales volume. Food costs as a percentage of restaurant sales decreased to 27.9% in the second quarter fiscal 2009 from 28.1% in the second quarter last year primarily due to higher menu prices partially offset by increased commodity costs for seafood, beef, oils and shortening.

Payroll and related costs decreased $0.5 million in the second quarter fiscal 2009 compared to the same quarter last year due to lower crew overtime and lower management costs offset by higher average wages paid to crew employees. Payroll and related costs as a percentage of restaurant sales increased to 35.4% in the second quarter fiscal 2009 from 34.5% in the same quarter last year, primarily due to reduced restaurant sales.

Other operating expenses primarily include restaurant-related expenses for utilities, repairs and maintenance, advertising, insurance, supplies, services and occupancy costs. Other operating expenses decreased by approximately $1.3 million compared to the same quarter last year. As a percentage of restaurant sales, other operating expenses decreased to 21.1% compared to 22.0% in the same quarter last year. Other operating expenses decreased primarily due to 1) an approximate $0.7 million reduction in repairs and maintenance expense related to improvements in cost controls, 2) an approximate $0.3 million, net decrease in restaurant supplies and other operating expenses on reduced restaurant sales, and 3) an approximate $0.3 million reduction in guest claims expense.

Depreciation and amortization expense increased approximately $0.3 million in the second quarter fiscal 2009 compared to the same quarter last year due to higher depreciable asset base generated by increased capital expenditures in fiscal 2008, including the opening of three restaurants, as well as upgrades and remodels to existing units.

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 decreased by approximately $1.3 million in the second quarter fiscal 2009 compared to the same quarter last year. As a percentage of total sales, general and administrative expenses decreased to 8.0% in the second quarter compared to 9.5% in the same quarter last year. The decrease was primarily due to 1) the second quarter last year included approximately $1.1 million in professional fees primarily related to the solicitation of proxies for the 2008 annual meeting of shareholders, this cost did not occur in the second quarter this year, 2) approximately $0.2 million reduction in corporate salaries expense related to reduction in corporate staffing levels.

Amended Credit Facility Agreement

“Given the current macro-economic environment impacting our financial results and the reduction of our capital plans, we took a conservative approach to proactively work with our existing banks to amend our credit facility to enhance financial flexibility,” said Mr. Pappas.

Primary changes to the credit facility agreement:

• Reduces facility from $50 million to $30 million
• Retains $100 million accordion feature
• Permits increased capital expenditures
• Modifies the interest rate
• Remains an unsecured credit facility

Conference Call

The Company will host a conference call today at 4:00 p.m., Central Time, to discuss second quarter fiscal 2009 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 121 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.

This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release, other than statements of historical fact, are “forward-looking statements” for purposes of these provisions, including the statements under the caption “Company Outlook” and any other statements regarding plans for expansion of the Company’s business, scheduled openings of new units, expected levels of capital expenditures, and expectations of industry conditions.

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. The following factors, as well as any other cautionary language included in this press release, provide examples of risks, uncertainties and events that may cause the Company's actual results to differ materially from the expectations the Company describes in its “forward-looking statements”: general business and economic conditions; the impact of competition; our operating initiatives; fluctuations in the costs of commodities, including beef, poultry, seafood, dairy, cheese and produce; increases in utility costs, including the costs of natural gas and other energy supplies; changes in the availability and cost of labor; the seasonality of the Company’s business; changes in governmental regulations, including changes in minimum wages; the effects of inflation; the availability of credit; unfavorable publicity relating to operations, including publicity concerning food quality, illness or other health concerns or labor relations; the continued service of key management personnel; and other risks and uncertainties disclosed in the Company’s annual reports on Form 10-K and quarterly reports on Form 10-Q.

Luby's, Inc. Consolidated Statements of Operations (unaudited) (In thousands except per share data)
	Quarter Ended						Two Quarters Ended
	February 11,			February 13,			February 11,			February 13,
	2009			2008			2009			2008
	(12 weeks)			(12 weeks)			(24 weeks)			(24 weeks)
SALES:
Restaurant sales	$	67,669		$	70,972		$	133,614		$	142,606
Culinary contract services		3,031			1,668			6,033			3,396
TOTAL SALES		70,700			72,640			139,647			146,002
COSTS AND EXPENSES:
Cost of food		18,884			19,938			37,129			39,595
Payroll and related costs		23,956			24,495			48,598			48,934
Other operating expenses		14,299			15,590			30,822			31,333
Opening costs		340			22			494			22
Cost of culinary contract services		2,681			1,500			5,341			3,078
Depreciation and amortization		4,339			4,014			8,704			7,970
General and administrative expenses		5,638			6,888			11,748			12,856
Provision for asset impairments, net		233			—			233			717
Net (gain) loss on disposition of property and equipment		65			(222	)		(145	)		94
Total costs and expenses		70,435			72,225			142,924			144,599
INCOME (LOSS) FROM OPERATIONS		265			415			(3,277	)		1,403
Interest income		40			375			159			673
Interest expense		(56	)		(49	)		(142	)		(100	)
Impairment charge for decrease in fair value of investments		(130	)		—			(130	)		—
Interest (reversal of) related to income taxes		—			(578	)		—			1,319
Other income, net		231			229			491			411
Income (loss) before income taxes and discontinued operations		350			392			(2,899	)		3,706
Provision (benefit) for income taxes		154			85			(952	)		(1,409	)
Income (loss) from continuing operations		196			307			(1,947	)		5,115
Loss from discontinued operations, net of income taxes		(50	)		(21	)		(99	)		(58	)
NET INCOME (LOSS)	$	146		$	286		$	(2,046	)	$	5,057
Income (loss) per share from continuing operations:
Basic	$	0.01		$	0.01		$	(0.07	)	$	0.18
Assuming dilution		0.01			0.01			(0.07	)		0.18
Loss per share from discontinued operations:
Basic	$	—		$	—		$	—		$	—
Assuming dilution		—			—			—			—
Net income (loss) per share:
Basic	$	0.01		$	0.01		$	(0.07	)	$	0.18
Assuming dilution		0.01			0.01			(0.07	)		0.18
Weighted average shares outstanding:
Basic		27,965			28,408			27,955			27,645
Assuming dilution		28,077			28,518			27,955			28,057

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						Two Quarters Ended
	February 11,			February 13,			February 11,			February 13,
	2009			2008			2009			2008
	(12 weeks)			(12 weeks)			(24 weeks)			(24 weeks)
Restaurant sales		95.7	%		97.7	%		95.7	%		97.7	%
Culinary contract services		4.3	%		2.3	%		4.3	%		2.3	%
TOTAL SALES		100	%		100	%		100	%		100	%
COSTS AND EXPENSES:
(As a percentage of restaurant sales)
Cost of food		27.9	%		28.1	%		27.8	%		27.8	%
Payroll and related costs		35.4	%		34.5	%		36.4	%		34.3	%
Other operating expenses		21.1	%		22.0	%		23.0	%		22.0	%
Store level profit		15.6	%		15.4	%		12.8	%		15.9	%
(As a percentage of total sales)
General and administrative expenses		8.0	%		9.5	%		8.4	%		8.8	%
INCOME (LOSS) FROM OPERATIONS		0.4	%		0.6	%		(2.3	)		1.0	%

Luby's, Inc. Consolidated Balance Sheets
	February 11,			August 27,
	2009			2008
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	2,361		$	4,566
Trade accounts and other receivables, net		4,139			3,368
Food and supply inventories		3,076			3,048
Prepaid expenses		1,663			1,627
Deferred income taxes		1,892			1,580
Total current assets		13,131			14,189
Property and equipment, net		196,088			198,118
Long-term investments		7,895			8,525
Property held for sale		6,101			5,282
Other assets		361			407
Total assets	$	223,576		$	226,521
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	11,305		$	14,268
Accrued expenses and other liabilities		14,479			17,712
Total current liabilities		25,784			31,980
Credit facility debt		6,000			—
Deferred straight line rent		2,898			2,985
Other liabilities		2,264			3,607
Total liabilities		36,946			38,572
Commitments and Contingencies
SHAREHOLDERS' EQUITY
Common stock, $0.32 par value; 100,000,000 shares authorized; Shares issued were 28,472,162 and 28,439,214, respectively; Shares outstanding were 27,972,162 and 27,939,214, respectively		9,111			9,101
Paid-in capital		21,122			20,405
Retained earnings		161,172			163,218
Less cost of treasury stock, 500,000 shares		(4,775	)		(4,775	)
Total shareholders' equity		186,630			187,949
Total liabilities and shareholders' equity	$	223,576		$	226,521

Luby's, Inc. Consolidated Statements of Cash Flows (unaudited) (In thousands)
	Two Quarters Ended
	February 11,			February 13,
	2009			2008
	(24 weeks)			(24 weeks)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(2,046	)	$	5,057
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Provision for asset impairments, net of gains and losses on property sales		88			811
Depreciation and amortization		8,704			7,970
Impairment charge for decrease in fair value of investments		130			—
Amortization of debt issuance cost		40			21
Non-cash compensation expense		132			113
Share-based compensation expense		595			559
Interest related to income taxes		—			(1,319	)
Deferred tax provision		(1,267	)		(931	)
Cash provided by operating activities before changes in operating assets and liabilities		6,376			12,281
Changes in operating assets and liabilities:
Increase in trade accounts and other receivables, net		(771	)		(978	)
Increase in food and supply inventories		(28	)		(302	)
(Increase) decrease in prepaid expenses and other assets		(29	)		127
Decrease in accounts payable, accrued expenses and other liabilities		(6,595	)		(302	)
Net cash provided by (used in) operating activities		(1,047	)		10,826
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from redemption or maturity of short-term investments		—			16,600
Purchases of short-term investments		—			(25,650	)
Proceeds from redemption or maturity of long-term investments		500			—
Proceeds from disposal of assets and property held for sale		1,117			2,300
Purchases of property and equipment		(8,775	)		(14,799	)
Net cash used in investing activities		(7,158	)		(21,549	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Credit facility borrowings		11,000			—
Credit facility repayments		(5,000	)		—
Proceeds received on the exercise of stock options		—			11,205
Net cash provided by financing activities		6,000			11,205
Net increase (decrease) in cash and cash equivalents		(2,205	)		482
Cash and cash equivalents at beginning of period		4,566			17,514
Cash and cash equivalents at end of period	$	2,361		$	17,996
Cash paid for:
Income taxes	$	—		$	302
Interest		102			56

CONTACT:
Luby’s, Inc.
Rick Black, 713-329-6808