Restaurant chain operator Luby’s Inc (NYSE: LUB) has entered into an agreement to sell the Fuddruckers franchise business operations.
The franchise will be sold to a newly formed affiliate of Nicholas Perkins, Black Titan Franchise Systems LLC.
The Fuddruckers brand currently has 92 locations operating in the United States, including 13 sites operated by affiliates of Perkins.
The sale could provide Luby’s with about $18.5 million of value, although there is no assurance for such consideration.
“This strategic alignment, when combined with the fact that we sell the ‘World’s Greatest Hamburgers, will ensure the long-term success of the brand and our franchisees,” said Nicholas Perkins, CEO of Black Titan Franchise Systems.
Luby’s held 7.8 million in cash and equivalents as of February 28, 2021.
Price action: LUB shares are down by 0.27% at $3.74 on the last check Friday.
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