Feb. 19, 2008
IRVING, Texas — Comparable-store sales at Chuck E. Cheese restaurants declined 2.7 percent in the fourth quarter ended Dec. 30, according to parent company CEC Entertainment Inc. Comps for the full year declined 1.4 percent.
Revenues for the fourth quarter ended Dec. 30 were flat compared with the 2006 fourth quarter at $175.1 million. For the year, revenues increased 2 percent to $785.3 million, up from $772.6 million in 2006.
The company ran a net loss of $600,000 in Q4, compared with a net income of $12.1 percent in the 2006 fourth quarter. Asset impairment charges of $8.4 million and a tax-related adjustment of $2 million helped contribute to the Q4 loss.
For the year, net income fell 18 percent to $55.9 million compared with a net income of $68.3 million in 2006.
"Although disappointed by the sales trend in 2007, we continue to believe our strategies will positively impact sales and earnings, and over the long-term will deliver an excellent experience for our guests and solid performance for our shareholders," said chief executive Richard Frank. "The 2008 fiscal year is off to a positive start with comparable-store sales increasing 2.5 percent in the first seven weeks of the year."
The company is estimating comps growth to be in a range of flat to up 1 percent for 2008, Frank said. CEC Entertainment plans to open six to seven new company-owned units and four new franchise units during the year.