IRVING, Texas — Chuck E. Cheese's Pizza reported modest increases in comparable-store sales and revenue for the 12 weeks ended July 2.
According to a news release, comps rose 1.2 percent for the period, and revenue rose to $176.2 million from $168.4 million in 2005. Net income was $12.6 million, down from $13.1 million in the comparable period.
For the first half of the year, revenue increased to $403.2 million from $382.5 million, but net income dropped to $41.8 million from $44.4 million last year.
The company said it's increasing its focus on growing same-store sales and reducing new restaurant development. It said it will boost investment in existing restaurants to $48 million this year, compared to an average of $24 million over the past four years. The company also said it will intensify marketing efforts by improving enticement offers, increasing distribution of coupons, new cross-promotions and direct e-marketing.
Additionally, Chuck E. Cheese's parent company, CEC Entertainment Inc., said its board of directors began a voluntary review of how the company awards stock options. The move makes it the second restaurant company to announce such an internal audit. The audit comes on the heels of federal investigations into alleged backdating and other price-manipulating practices at some 80 public companies.