Financing

Chuck E. Cheese same-store sales slowed

But the company recorded its fifth straight quarterly increase as it nears a reverse merger that will take it public.
Photograph courtesy of CEC Entertainment

CEC Entertainment, the parent company of pizza-and-games chain Chuck E. Cheese, said on Monday that its same-store sales slowed to 0.4% in the quarter ended June 30, according to preliminary earnings results.

But company executives said that shifts in the timing of Spring Break and Easter had a significant influence on sales in the period. So far this year, same-store sales are up 4.5%, which reflects a more accurate reading of its progress, executives said. Same-store sales surged 7.7% in the first quarter. Same-store sales have risen for five straight quarters.

“Our team is doing a solid job of advancing the Chuck E. Cheese brand through planned initiatives while simultaneously improving the guest experience,” CEO Tom Leverton said in a statement. He said the company is on track to complete 60 remodels this year.

CEC, based in Irving, Texas, operates 609 Chuck E. Cheese locations plus another 141 Peter Piper Pizza restaurants.

The company in April announced a merger with Leo Holdings, a blank check company. The $314 million deal will help CEC pay down debt and will ultimately take CEC public. CEC said it expects to close that merger shortly after a shareholder vote by the end of this month.

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