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

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

'My Brain Thrives on Variety': His Side Hustle Inspired By 'The 4-Hour Workweek' Led to $600,000 in 16 Months

Mark Hellweg, 42, knows what it takes to start a business "with a fraction of the capital."

Productivity

6 Habits That Help Successful People Maximize Their Time

There aren't enough hours in the day, but these tips will make them feel slightly more productive.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Growing a Business

What Brands and Consumers Can Do to Build a Privacy-First Digital Future

As privacy concerns grow, consumers and businesses alike are rethinking how data is collected and used. A cultural shift toward transparency and accountability is paving the way for privacy-first solutions — and raising the stakes for companies that fail to adapt.

Business News

The Free AI Tool That Will 3x Your Sales

Stop guessing in marketing! Unlock Google AI Studio as your free 24/7 consultant. Discover a five-step framework to boost email, landing pages and sales.