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IRVING, TX -- CEC Entertainment Inc., parent firm of the Chuck E. Cheese's pizza-arcade chain, said net income rose 36% to $6.5 million for its second fiscal quarter, ended July 3. But CEC's stock price dropped almost 10% on Aug. 5 after a leading analyst downgraded it from "buy" to "neutral."
The analyst pointed to the fact that company officials said earnings for the year would be lower than expected ($2.75 a share compared to earlier forecasts of $2.95 a share). | SEE RELEASE
Stock watchers also cited CEC's performance during the first three weeks of the current quarter. The company said revenue at restaurants open a year or more dropped sharply. Executives blamed consumer unease about the economy, bad weather and stiff competition for family leisure budgets from a number of successful family films currently at the box office.