CEC Entertainment 3Q profit rises 28 percent

All Associated Press news

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.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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