Chuck E. Cheese’s Parent to Revamp Pizza

According to Nation’s Restaurant News, “Executives at CEC Entertainment Inc., parent to the 553-unit Chuck E. Cheese’s chain, said Thursday that an improved pizza product and planned remodels should help it continue same-store sales increases into this year.”

“CEC reported fourth-quarter net income fell 48 percent to $2.8 million, or 14 cents a share, from $5.4 million, or 24 cents a share, in the same period last year, which included an extra week. Revenue in the quarter, which ended Jan. 2, slipped 2.6 percent, to $182.8 million. Same-store sales in the quarter were up 3.9 percent, exceeding CEC’s forecast of growth between 2 percent to 3 percent. The company forecast same-store sales increases of 1 percent to 2 percent for fiscal 2011. Michael Magusiak, CEC’s president and chief executive, said in a call Thursday with securities analysts that the company is remodeling stores, growing sales of children’s birthday packages and promoting online coupons through network television advertising to build sales through value messages, including online coupons for pizza and tokens. He noted that online coupons have increased incremental guest visits.”

Read more: http://nrn.com/article/chuck-e-cheese%E2%80%99s-parent-revamp-pizza#ixzz1FGYWEcCx