News

Chuck E Cheese parent Q2 performance profits from 'All You Can Play'

August 14, 2019

Chuck E. Cheese parent company, CEC Entertainment, Inc., reported Q2 and half year financial results for this year that show the pizza brand's introduction of the time-based play offering, "All You Can Play," may be helping boost sales, according to results released today. 

Key highlights from the company's half- and quarter-year results for the periods ending June 30, include:

• 4.5% higher comparable venue sales half-year over half-year.
• 16.2 million increase in total revenues to $488.5 million half-year over half-year.
• 8.4% increase in half-year adjusted EBITDA to $114.5 million. 
• 2.5% drop in Q2 adjusted EBITDA to $38.4 million.
• 0.5% growth in Q2 comparable venue sales over last year's quarter. 
• 1% drop in total Q2 revenues to $215.2 million. 
• $300,000 decline in quarterly net loss over last year to $8.7 million. 

Second-quarter net loss was favorably affected by more company-operated venue sales and lower food and beverage costs, driven by favorability in commodity prices and volume. Lower Q2 revenues were attributed primarily to the company's net breakage related to PlayPass of $1.3 million this year, compared to $5.2 million during last year's quarter. This decline was attributed to the introduction late last year of the company's time-based play offering, All You Can Play.

"We posted our fifth consecutive quarter of comparable venue sales growth in the second quarter of 2019, driven by the positive impact of the All You Can Play and More Tickets initiatives," CEC Entertainment CEO Tom Leverton, said in the release. "We are pleased with our results for the first half of 2019 and our flow through to earnings despite continued pressures from wage growth. We remain optimistic about the growth prospects in the business going forward."