CEC Entertainment (NYSE Euronext (NYX): CEC) operates Chuck E. Cheese, a restaurant chain known for its games and entertainment for kids. CEC's main revenue source is food and beverage sales, which account for about 63% of the company's revenue, but unlike other casual & upscale restaurants it also makes a good chunk of its revenues from gaming and entertainment.^[1] Chuck E. Cheese's sales rely strongly on birthday parties, as the company hosts over 2 million birthday parties annually at its 490 locations.^[2]

In 2008, the company has added new games and rides to try to attract more customers, and CEC's comparable store sales grew by 3.6% in Q1 2008 and an additional 5.6% in Q2 2008.^[3] CEC's new games and rides cost $125,000 to $175,000 per renovation and include new virtual reality roller coaster rides and virtual race car games for each renovated restaurant.^[4] The boost in overall sales offset these costs, leading to a 7% increase in Q2 2008 net income from Q2 2007.^[5]In addition to renovating existing stores, CEC opened 10 new locations in 2007 and plans on opening 30 to 40 new stores between 2008 and 2013, costing approximately $2.5 million to $2.7 million each.^[6]

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