LUB Luby's, Inc.

Risks

• We are exploring various strategic alternatives to enhance shareholder value, but this strategic review process may not result in the achievement of the desired goal of enhancing shareholder value.
• General economic and business conditions as well as those specific to the restaurant industry may adversely affect our business, financial condition and results of operations.
• We face intense competition, and if we are unable to compete effectively or if customer preferences change, our business, financial condition and results of operations may be adversely affected.
• Failure of our efforts designed to effect a turn-around of the business could adversely affect our business, financial condition and results of operations.
• Our ability to service our debt obligations is primarily dependent upon our future financial performance.
• The impact of inflation may adversely affect our results of operations.
• We face the risk of adverse publicity and litigation, which could have a material adverse effect on our business and financial performance.
• We are subject to risks related to the provision of employee healthcare benefits, worker’s compensation and employee injury claims.
• An increase in the minimum wage and regulatory mandates could adversely affect our financial performance.
• We may be required to recognize additional impairment charges.
• We may be harmed by security risks we face in connection with our electronic processing and transmission of confidential customer and employee information.
• Labor shortages or increases in labor costs could adversely affect our business and results of operations.
• If we are unable to anticipate and react to changes in food, utility and other costs, our results of operations could be materially adversely affected.
• Our business is subject to extensive federal, state and local laws and regulations.
• Termination of franchise agreements may disrupt restaurant performance.
• Franchisees may breach the terms of their franchise agreements in a manner that adversely affects the reputation of our brands.
• Our strategic initiative to transition the majority of our company-owned Fuddruckers restaurants to franchise operators may not be fully realizable.
• Expansion of our CCS operations may not be successful.
• Failure to collect account receivables could adversely affect our results of operations.
• If we lose the services of any of our key management personnel, our business could suffer.
• Our business is subject to seasonal fluctuations, and, as a result, our results of operations for any given quarter may not be indicative of the results that may be achieved for the full fiscal year.
• We may not be able to adequately protect our intellectual property, which could harm the value of our brands and adversely affect our business.
• The price of our common stock may experience volatility.
• Appraisals of our properties are estimates of value and may not necessarily correspond to realizable value.