- Restaurant operator Luby's has completed various pieces of its liquidation process at valuations ahead of liquidation accounting.
- They have done well monetizing their major brands/franchises at attractive valuations and selling properties at potentially a premium to liquidation and appraisal value.
- Even on liquidation accounting assumptions including PPP loan forgiveness, investors should see around $4.44/share, but things appear to be trending better.
- Recent transactions imply over $5/share may be realized and higher valuations up to $7/share, though less likely, are not inconceivable.
- Luby's may offer upside of around 20%-65% on a 6 to 12-month view.
For further details see:
Luby's Recent Liquidation Transactions Imply Liquidation Proceeds Of $5-$7 Per Share