Chuck E. Cheese’s customers apparently liked the company’s new pricing packages.
Same-store sales increased 7.7% at the Irving, Texas-based food and games chain and its sister chain, Peter Piper Pizza, parent company CEC Entertainment said this week.
Revenues in the quarter ended March 31 rose 7.2% to $273.3 million, while net income rose 74% to $21.2 million, the company said.
Executives cited Chuck E. Cheese’s introduction of new All You Can Play packages, which enable customers to play as many games as they want within a certain time frame. The company also used additional tickets as an incentive to get customers in the door.
The company did acknowledge getting a benefit in the quarter from a later Easter, which delayed the otherwise slow weekend into the next quarter. But CEO Tom Leverton said that the additional sales had “great flow-through to earnings.”
He also said the company is reimaging more of its locations and plans additional initiatives to improve profitability.
The company, which operates more than 600 Chuck E. Cheese’s locations, plus 142 Peter Piper units, recently announced plans to go public through a reverse merger with a shell company called Leo Holdings.
Chuck E. Cheese’s introduced All You Can Play last year, offering customers the ability to play unlimited games for 30 minutes at $9.
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