News

Chuck E. Cheese's Pizza sees Q4 '03 comps fall while revenues rise

February 17, 2004

IRVING, Texas—Despite a comparable-store sales drop of 1.4 percent in the fourth quarter of 2003, CEC Entertainment, Inc., parent of Chuck E. Cheese's Pizza, reported its revenues for the period rose 6.8 percent to $147.4 million, versus $138.1 million in the comparable quarter in 2002.

According to a news release, net income for the period was $11.8 million, up 7.7 percent from $10.9 million in the comparable period in 2002.

Diluted earnings per share (EPS) in 4Q '03 was 45 cents per share, compared to 39 cents per share the year prior.

Comp-store sales for all of 2003 dropped 0.3 percent, though revenues for the period increased to $654.6 million, up from $602.2 million in 2002. Net income in 2003 increased to $70.8 million from $69.5 million in 2002. Diluted earnings per share in 2003 were $2.62 per share compared to $2.46 per share in 2002.

The company said new store development boosted revenue and earnings, and its aggressive stock buyback program in 2003 led to a 15.4 percent increase in fourth quarter EPS.

In the release, CEC Chairman and CEO Richard M. Frank said that the company's strong cash flow will allow it to work its long-term strategies of reinvesting in core stores, adding company stores through new unit development and franchise acquisitions by approximately 10 percent annually. It also wants to continue its share repurchase plan.

CEC's board declared a three-for-two stock split in the form of a special stock dividend to be effective and distributable on March 15, 2004. Stockholders will receive one additional share for each two shares of common stock held on the record date of Feb. 25, 2004. The Company will pay cash in lieu of the distribution of fractional shares.

CEC operates 468 Chuck E. Cheese's restaurants in 48 states, of which 420 are company owned and operated.