Chuck E. Cheese Q1 financials: Still problematic, but signs of recovery
CEC Entertainment Inc.,parent company of Chuck E. Cheese, said Q1 2018 results revealed that the chain took a $10 million hit in year-over-year quarterly total revenues, while comparable venue sales dropped 5.1 percent for the quarter. Nonetheless, leadership said there were strong indications that the work the brand has done to reinvent itself is beginning to pay off, according to a news release.
Other first quarter highlights include:
- $10.8 million drop in company venue sales.
- $1.8 million decline in deferred amusement revenue, resulting in a $12.7 million decrease in company-operated venue cash revenue.
- Net Income was $12.2 million, compared to $17.2 million during Q1 2017.
- Adjusted EBITDA decreased $14.0 million to $69.6 million quarter-over-quarter.
"While we continued to feel the impact of several challenges to our business in the first quarter, we were encouraged by the early results of the measures we put in place to address the issues, including launching new advertising campaigns addressing moms and kids, as well as a revitalized approach to birthdays," CEO Tom Leverton, said in the release. "Our comparable venue sales performance improved each month during the quarter and we have seen that trend continue recently. Looking at March and April together — which removes the impact of calendar shifts with spring breaks and Easter — our comparable venue sales improved approximately 1 percent over the same nine-week period in 2017. Comparable venue sales for the first five weeks of our second quarter have increased in the mid-single digit percent range."