The Houston company said it would distribute the proceeds from the sale to stockholders after it pays debt and other obligations.
At last check Luby's shares more than doubled to $1.88. They rose almost 6% on Wednesday.
Monetizing the assets "will likely unlock more value more quickly and with greater certainty for the benefit of all Luby's stockholders than the other alternatives considered" by a special committee of directors, Luby's said in a statement.
The company can't say how long such a process might take. And it can't say certainly that the board will adopt such an asset-sale plan. Luby's did say that such a plan would require approval by its stockholders.
The decision followed a review of operations, including the impact of the covid-19 pandemic, the company said. The pandemic hammered the nation's restaurant and food-service industries since consumers couldn't go out to eat.
The company will explore selling Luby's Cafeteria, Fuddruckers, and Culinary Contract Services as well as its real estate.
This comes two months after the company said it would furlough half of its corporate office and administrative staff due to the coronavirus outbreak.
The company has 78 Luby's Cafeterias, 40 Fuddruckers and one Cheeseburger in Paradise location as well as nearly 100 franchised restaurants and the food-service business.
On Wednesday' the company reported second-quarter results that topped analyst estimates.
In May 2020, the company began gradually reopening dining rooms with limits on customer capacity at many of its locations.
Luby's obtained $10 million in the quarter through the Payroll Protection Program, which the company said was necessary to fund its operations. Luby's says a portion of the loan should be eligible for forgiveness.
Luby's also continued efforts to close real estate sales transactions with anticipated proceeds in excess of $20 million prior to the end of the fiscal year.