IRVING, Texas – Comparable-store sales at CEC Entertainment Inc, operator of Chuck E. Cheese restaurants, fell 1.5 percent for the 2008 fourth quarter ended Dec. 28, the company has announced. For the year, comps were up 2.3 percent.
Revenue for the quarter was $175 million, off slightly compared with revenue of $175.1 for the 2007 fourth quarter. For the year, revenue was $814.5 million, up 4 percent compared with revenue of $785.3 million for 2007.
Net income for the quarter was $2.4 million compared with a loss of $564,000 for the 2007 fourth quarter. Results for the quarter benefited from a $1.7 million reduction in the company's contingency reserve for ongoing legal matters and an $8.2 million decrease in asset impairment charges compared with the fourth quarter of 2007.
Net income for the year was $56.5 million, up slightly compared with net income of $55.9 million for the previous year.
"The marketplace in which we operate has weakened in the latter part of 2008 and has continued in 2009," said president and CEO Michael Magusiak. "Clearly, the economy is impacting comparable store sales, which are down 1.4 percent through the first seven weeks of 2009. Sales in California and Florida are very soft; however, we are experiencing strong sales results in a number of other markets."
The company is currently forecasting 2009 earnings in a range of $2.53 to $2.65 per diluted share and a comparable store sales decrease of 1-2 percent.