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, Missouri and currently (at the era skid 22 was published in 1999) has 223 locations in 11 states passim the Midwestern, Southern and Southwestern US. Lubys is a publicly traded company on the New York Stock Exchange with no single validation 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 win margins that read been considerably diminish over the past few years. The fol mooing S.W.O.T. analysis go forth try to pinpoint Lubys strategic issues or problems they argon lining as well assist in providing alternating(a) solutions and a final recommendation in handling these issues. S.W.O.T. Strengths: Lubys has go through an ontogenesis in sales revenue from $390,692,000 in 1994 to $508,871,000 in 1998. They have in desire manner increase their occupation from 113,546,000 in 1994 to 154,501,000 in 1998, which would come along to coincide with th e increased sales revenue. From 1997-1998, Lubys experienced a give back on their investments of 11.0% compared to an effort average of only 8.6%. Their debt-to-equity for the 1997-1998 period is in like manner very impressive at a low .5 compared to an industry 2.5. Weaknesses: The first, and probably most important, weakness Lubys is facing is the diminish profit margins. Net income has lowered 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 t olls during the 1994-1998 term period, food! damages have risen approximately 31%, payroll has risen 48.4%, provisions for store closings have cost $49,284,000 and general & administrative expenses have risen 43.9%. Lubys in any case has a weakness that isnt as noticeable, involving its brand recognition. When most bulk think of Lubys, they think of... If you want to get a good essay, order it on our website: OrderCustomPaper.com

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