CEC Entertainment Inc., Chuck E. Cheese's, Chuck E. Cheese, Michael Magusiak, family entertainment centers, arcade, coin machines, coin-op games, amusement business
IRVING, TX -- CEC Entertainment Inc., parent company of Chuck E. Cheese's children's entertainment centers, saw share prices fall 10% during the first week of August after it reported a 47% drop in profits during the quarter ended July 4. Comparable store sales for units open at least a year fell 2.2%. Revenue dropped to $181 million for the quarter, from $184.8 million for the same period a year ago.
CEC chief executive Michael Magusiak said the results are disappointing. He blamed tax burdens, competition from popular summer movies, reduced coupon discount offers and a struggling U.S. restaurant market for the declines. However, the company's new $9.99 pizza offer is reportedly driving more traffic to stores.
CEC runs and franchises 546 centers. It plans to open eight new stores by the end of this year.
