Sales results at Chuck E. Cheese’s stores were “challenging” in the first quarter of the year, but the company continues to make progress, CEO Tom Leverton claimed.
The entertainment venue operator’s parent company, CEC Entertainment, announced total revenues of $265.5m for the three months to March 29, an increase of 3.8 per cent year on year.
The increase was attributed to additional revenues of $18.8m resulting from the company’s acquisition of the Peter Piper Pizza chain. However, this was offset by a decrease in same store sales at its Chuck E. Cheese’s stores, with sales down five per cent.
Adjusted EBITDA for the first quarter of 2015 decreased 1.8 per cent to $80.7m.
"While sales results at our Chuck E. Cheese's stores were challenging, we made progress in a number of important areas during the first quarter," said Leverton, noting that the company’s new executive leadership team is now in place and a new menu has been introduced nationwide.
"The enhancements we are making at our Chuck E. Cheese's stores coincide with changes we are making in our marketing strategy, including a change in our primary marketing agency,” he said. “We believe these efforts, along with other projects currently being implemented, will drive future revenue growth.”
