News

Comps down, profits flat in Q2 at Chuck E. Cheese's Pizza

July 26, 2005

IRVING, Texas — Second quarter 2005 comparable-store sales at 500-unit Chuck E. Cheese's Pizza dropped 2.1 percent, according to its parent, CEC Entertainment, Inc.

In a regulatory filing, the company said net income for the period was $14.4 million, equal to last year's comparable number. Revenues rose slightly to $168.4 million, up from $165.4 million in the comparable period.

Net income for the first six months of 2005 increased modestly to $46.7 million, compared to $45.8 million last year. Revenues for the period rose to $382.5 million, up from $372.4 million in 2004's comparable period.

Chris Morris, senior vice president and chief financial officer, said new unit openings boosted revenues, but that new promotions failed to lure customers concerned over increasing gas prices.

The company announced its board approved a new plan to buy back as much as $400 million of its stock. The timing and extent of those purchases will depend on market conditions, the filing said.