Issue Date: Vol. 51, No. 8, August 2011, Posted On: 8/13/2011
CEC Entertainment Inc. Sees Q2 Net Income Up, Stock Price Down
CEC Entertainment Inc., Chuck E. Cheese's, CEC stock price, CEC Entertainment financials, amusement business, family entertainment center, FEC, amusement arcade
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.