⚡ Get All Content for 20% Off ⚡

Report: Chuck E. Cheese's Is on the Block After disappointing sales, Chuck E. Cheese's parent company is reportedly exploring a potential sale.

By Kate Taylor

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

blogs.dallasobserver.com

It hasn't been fun and games for Chuck E. Cheese's investors these last few months, but with rumors of a sale of the chain's parent company, all that may change.

CEC Entertainment, the parent company of Chuck E. Cheese's, is reportedly exploring a potential sale, according to a Reuters report published Tuesday. The Irving, Texas-based company has allegedly been working with Goldman Sachs and has spoken with interested buyers over the last several months.

CEC shares closed at $49.58 on Wednesday, the highest price since the company began trading on the NYSE in 1990. The stock continued to hover near that range midday on Thursday.

Related: Sonic Looks to Conquer Tougher Markets on Encouraging Q1 Results

CEC has had a rough run in recent months. The company saw same-store sales fall 2.1 percent year-over-year in the third quarter and posted a 3.6 percent drop in food and beverage sales. Total revenues for the quarter fell 0.4 percent to $195.9 million from 196.6 million.

CEC is one of several restaurant chains forced to consider selling in the face of poor traffic. Darden Restaurants recently announced it would shed Red Lobster after declining earnings and disappointing same-restaurant sales. In November, Roark Capital Group, parent company of chains including Arby's, Auntie Anne's and Cinnabon, acquired CEK Inc., the parent of Carl's Jr. and Hardee's. Ruby Tuesday and Dave & Busters are also rumored to be on the block.

Despite rumors of sale and decreasing revenue, Chuck E. Cheese's doesn't seem to be slowing growth efforts. On Dec. 30, the chain opened four restaurants in Florida, Texas and New York. The company and franchisees operate 571 stores in 48 states, as well as eight restaurants internationally.

Related: Struggling Red Lobster to Split From Parent Company

Kate Taylor

Reporter

Kate Taylor is a reporter at Business Insider. She was previously a reporter at Entrepreneur. Get in touch with tips and feedback on Twitter at @Kate_H_Taylor. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Remote Side Hustle a 43-Year-Old Musician Works on for 1 Hour a Day Earns Nearly $3,000 a Month: 'All From the Comfort of Home'

Sam Ziegler wanted to supplement his income as a professional drummer — then his tech skills and desire to help people came together.

Marketing

Ever Wonder Why Certain Websites Rank Higher Than Yours? This SEO Expert Reveals The Secret to Dominating Search Results

It's often the smart use of SEO, now supercharged with AI, particularly in keyword optimization.

Business News

AI Is Impacting Jobs. Here Are the Gigs Affected the Most, According to an Analysis of 5 Million Upwork Postings

The researcher said in the report that freelance jobs were analyzed first because that market will likely see AI's immediate impact.

Franchise

The Top Franchise Brands Growing Globally

While our main Fastest-Growing Franchises list focuses on North American growth, more and more brands are looking to grow worldwide. These are the 25 that had the greatest franchise growth outside the U.S. and Canada from July 2022 to July 2023.