Chuck E. Cheese’s parent posts 32% jump in profitChuck E. Cheese’s parent posts 32% jump in profit

IRVING Texas CEC Entertainment Inc., operator and franchisor of the 537-unit Chuck E. Cheese’s pizza and entertainment chain, reported today a 32.9-percent increase in net income for the second quarter on increased revenue and a large year-to-year drop in asset impairment charges.

For the quarter ended June 29, CEC earned $11.3 million, or 48 cents per share, versus $8.5 million, or 26 cents per share, in the same quarter last year. Asset impairment expenses were slashed to $137,000 from $1.3 million a year ago.

Revenue in the latest quarter rose 7 percent to $192.5 million. The company said its top line was driven by new store openings and a same-store sales gain of 5.7 percent. An enhanced marketing plan and efforts to increase the number of birthday party reservations and fundraising events aided sales, the company added.

Richard M. Frank, chairman and chief executive, said CEC was expecting same-store sales growth of between 2 percent and 3 percent for the remainder of the year — a “cautious outlook,” he said, because of the current economic environment.

For the first two quarters of the year, CEC said net income was up 9 percent from a year ago, to $44.2 million, on revenues that rose 6 percent to $437.7 million.

During the second quarter, the company purchased 2.8 million shares of its common stock, or about 11.3 percent of shares outstanding for $102.2 million.