Benzinga | Jun 18, 2021 10:51AM EDT

Luby's To Sell Fuddruckers Franchise For ~$18.5M

* 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.