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 skid 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 permutation with no single makeup owning more than 5.7 percent of its stock. Barry Parker, who is the companys chairperson/CEO, is dealing with a go stock price and grow margins that read been considerably decrease over the past a few(prenominal) years. The fol low-downing S.W.O.T. analysis go forth try to sail through Lubys strategic issues or problems they argon lining as headspring assist in providing utility(a) solutions and a final recommendation in handling these issues. S.W.O.T. Strengths: Lubys has experience an ontogenesis in sales revenue from $390,692,000 in 1994 to $508,871,000 in 1998. They incur in a exchangeable manner development their line of work from 113,546,000 in 1994 to 154,501,000 in 1998, which would occur 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 simply 8.6%. Their debt-to-equity for the 1997-1998 period is in like manner very awesome at a low .5 compared to an industry 2.5. Weaknesses: The first, and probably or so important, weakness Lubys is facing is the wither profit margins. Net income has move 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 duration period, food bes have risen approximately 31%, payroll has risen 48.4%, provide for store closings have cost $49,284,000 and general & administrative expenses have risen 43.9%. Lubys too has a weakness that isnt as noticeable, involving its brand recognition. When most big money think of Lubys, they think of... If you compliments to get a near essay, order it on our website: Ordercustompaper.com

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