CEC Entertainment 3Q profit rises 28 percent

Chuck E. Cheese owner CEC Entertainment says third-quarter profit rises 28 percent

• On 6:59 pm EDT, Thursday October 29, 2009

IRVING, Texas (AP) -- Chuck E. Cheese owner CEC Entertainment Inc. said Thursday its profit rose 28 percent in the third quarter despite a slight drop in sales, and that its 2010 profit projection assumes 6 percent to 10 percent growth over this year's profit.

The company's stock jumped in aftermarket trading.

The stock rose $2.67, or 10.5 percent, to $28 after closing Thursday at $25.33, up 5 cents from a day earlier.

The operator of the mouse-themed pizza chain, based in Irving, Texas, also offered guidance for next year's profit that is 6 percent to 10 percent higher than this year's.

CEC said it expects 2010 profit of $2.70 to $2.80 per share, compared to a $2.79 per share prediction of analysts polled by Thomson Reuters.

For the current year, CEC said profit would be $2.63 to $2.67 per share. Analysts expect $2.60 per share.

In the third quarter, it said profit rose 28 percent to $12.7 million, or 55 cents per share, in the quarter that ended Sept. 27. That is up from the $9.9 million, or 43 cents per share, it earned a year earlier.

Analysts had expected 46 cents per share.

Revenue dipped 2 percent to $197.8 million from $201.9 million. Analysts had expected $195.7 million.

The company said it had fewer shares in the most recent quarter because it bought back shares at the beginning of the third quarter.

Buzz up!