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IRVING, TX -- CEC Entertainment Inc. said financial results for the third quarter ended Oct. 3 showed total revenues up 4.7% to $207.1 million. Comparable store sales on a same-calendar-week basis (comparing weeks 27 through 39 of fiscal year 2010 to weeks 28 through 40 of fiscal year 2009) increased 3.8%.
Net income for the quarter fell slightly to $12.6 million compared with $12.7 million in the third quarter of 2009. CEC officials blamed the drop in profits on tax changes, asset impairment charges for three store locations and costs related to a chainwide switch from Coke to Pepsi.
For the first nine months of 2010, CEC's total revenues and comparable store sales were both up less than 1%. During the same period, CEC added four new stores and upgraded 157 existing locations with expansions, major remodels and game enhancements, said CEC president and chief executive Michael Magusiak.
This ongoing expansion and upgrading continues a policy launched nearly three years ago. During 2008, 2009 and the first three quarters of 2010, CEC added 14 new company stores and enhanced more than 450 stores, Magusiak said.
CEC is actively searching for potential partners in Mexico, Colombia and Brazil, and is open to franchises throughout Latin America, Magusiak told the Dallas Morning News. A second CEC store will open in Chile in December; officials expressed confidence that Chuck E. Cheese's stores would begin to open in Mexico in 2011.
CEC and its franchisees currently operate 546 stores in 48 states (excluding Wyoming and Vermont) and six stores out of the country.