Luby's Cafeteria - Will changing the recipe improve performance? This brief case includes a SWOT analysis and recommendations for improving profit margins.

Lubys was founded in 1911 in Springfield, moment and currently (at the era gaffe 22 was published in 1999) has 223 locations in 11 states end-to-end the Midwestern, Southern and Southwestern US. Lubys is a publicly traded company on the New York Stock flip-flop with no single formation owning more than 5.7 percent of its stock. Barry Parker, who is the companys president/CEO, is dealing with a go stock price and tempt margins that read been considerably fall over the past few years. The fol piteousing S.W.O.T. analysis go forth try to boom Lubys strategic issues or problems they are lining as nearly assist in providing alternative solutions and a final good word in handling these issues. S.W.O.T. Strengths: Lubys has experience an ontogenesis in gross sales revenue from $390,692,000 in 1994 to $508,871,000 in 1998. They nurse in comparable manner add their job from 113,546,000 in 1994 to 154,501,000 in 1998, which would postdate along to coincide with the increased sales revenue. From 1997-1998, Lubys experienced a give back on their investments of 11.0% compared to an effort average of wholly 8.6%. Their debt-to-equity for the 1997-1998 period is in standardised manner very astonishing at a low .5 compared to an industry 2.5. Weaknesses: The first, and probably near important, weakness Lubys is facing is the shrinking profit margins. Net income has lower from $39,335,000 in 1994 to only $5,081,000 in 1998.

This is principally due to an increase in operating expenses from $331,642,000 in 1994 to a staggering $497,692,000 in 1998. Of these increased operational tolls during the 1994-1998 cadence period, food costs have risen approximately 31%, payroll has risen 48.4%, render for store closings have cost $49,284,000 and general & administrative expenses have risen 43.9%. Lubys in like manner has a weakness that isnt as noticeable, involving its brand recognition. When most gage think of Lubys, they think of... If you lack to get a respectable essay, order it on our website: Orderessay

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