Improved store sales and new store openings helped drive revenue growth for CEC Entertainment, the operator of the Chuck E Cheese’s chain of pizza restaurants and amusements centres.
During the second quarter, the US-based company’s total revenues increased 5.2 per cent compared with the same period last year to $191.9m. This was attributed to a 2.9 per cent increase in comparable store sales, as well as additional revenues from new stores. Net income rose 77.5 per cent to $7.2m.
For the first six months of the year, total revenues have increased 4.2 per cent to $447.7m, up from $429.2m recorded in the first half of 2012. Net income, meanwhile, rose 11.3 per cent to $40.5m.
CEC president and CEO Michael Magusiak said the company’s management team was “pleased” with the results so far this year.
“The combination of increased revenue and the implementation of our profit strategies improved our store level operating margins by 250 basis points,” he said. “We believe that we have developed a solid plan to increase comparable store sales, grow our concept with both domestic and international new locations and improve our profitability.”
CEC Entertainment and its franchisees operate 567 Chuck E Cheese’s stores in the US and nine other countries and territories.
