News

Comps slide 5.1% at Chuck E. Cheese's Pizza

October 24, 2005

IRVING, Texas — CEC Entertainment, parent of Chuck E. Cheese's Pizza, blamed a combination of unsuccessful promotions and high gas prices for third-quarter declines in profit, revenue and comparable-store sales.

According to a regulatory filing, comps dropped 5.1 percent for the 12 weeks ended Oct. 2. Net income was $16.3 million down from $21.1 million last year. Revenue slid to $179.6 million from $183.6 million in the comparable period.

Total revenue for the first nine months of 2005 increased to $562.1 million from $556 million in the comparable period, while net income fell to $63 million versus $67 million.

"Although significantly challenged by the current external environment, we believe the continued execution of our long-term strategies of enhancing our value and experience for our guests, implementing effective advertising, continued new store development, building on operational execution and strategically repurchasing company stock will drive long-term shareholder value," said Richard M. Frank, chairman and chief executive officer of the 507-unit company.