News

Chuck E Cheese faltering since February

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March 9, 2020

Chuck E. Cheese parent company, CEC Entertainment Inc. said its 2019 comp venue sales grew 2.7% over the prior year, including a 2.6% increase n those numbers for Q4 2019 over the previous year's quarter. That news was tempered, however, when according to a news release, year-to-date comp venue sales were down 3.6%, despite that number being up for January

Highlights of the company's FY19 and Q4 2019 results include: 

• Revenues up from $896.1 million to $912.9 million. 
• Q4 comps sales up 2.6%. Q4 total revenues grew $3.9 million, or 1.9%, to $206.8 million over the previous year's quarter. 
• Q4 net loss grew to $26.1 million, versus a net loss of $14.2 million the previous year's quarter. 
• FY19 adjusted EBITDA grew $8.9 million, or 5.1%, to $184.1 million year over year. 
• Q419 adjusted EBITDA fell $0.3 million or 1%, to $30.6 million quarter-year over quarter year. 

"2019 was a strong year, built on the All You Can Play value gaming platform and expanded remodel program," CEO David McKillips, said in the release. "This year, I am looking forward to introducing our new domestic promotional initiatives, global franchise expansion and the debut of our entertainment & licensing efforts, as we work through some of the headwinds that the industry is facing today."

During the fourth quarter of 2019, the company made $26.6 million of capital expenditures, of which $16 million related to growth initiatives, $4.9 million related to IT initiatives, and $5.7 million related to maintenance capital expenditures, primarily consisting of game enhancements and general venue capital expenditures.

As of the end of the 2019 fiscal year, CEC's system-wide portfolio consisted of 612 Chuck E. Cheese locations and 129 Peter Piper Pizza restaurant in 47 states and 16 foreign countries and territories.