Chuck E. Cheese’s operator CEC Entertainment was “encouraged” by an increase in store sales in the first quarter of the year.
CEC revealed that total revenues generated by the pizza and games chain for the three months to March 31 increased 3.4 per cent to $255.3m, compared with the corresponding period in 2012. This increase was attributed to a 1.6 per cent improvement in comparable store sales, as well as additional revenue from six new stores opened in the last year.
Net income for the first quarter increased to $33.3m, compared with $32.3m a year earlier.
“During the first quarter of 2013, our new value pricing, marketing and operational strategies were fully implemented for the first time,” said president and CEO Michael Magusiak. “While we recognise that considerable uncertainty remains in the US economy and that consumers continue to experience various financial pressures, we are encouraged by the 1.6 per cent increase in comparable store sales this quarter.”
Looking ahead, CEC forecast store sales of 1.5 per cent to 2.5 per cent for the full year, based on the expected opening of between 12 and 15 new stores.
The US-based company and its franchisees presently operate 566 stores in 47 states and eight other countries and territories.
