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White Hutchinson Leisure & Learning Group, Kansas City, MO, USA

Chuck E. Cheese's reports 2009 1st quarter sales

Chuck E. Cheese's reported that overall, comparable store sales decreased just 0.1% in the first quarter of 2009. However, there was a large variation in different regions of the country.

In markets where CEC Entertainment had five or more stores, seven markets had comparable declines of 4% or more. Five of these were in California and Florida. Los Angeles was the worst performing market, with same store sales decreasing 10.0%. Five markets had 4% or higher increases, with San Antonio, Houston and Pittsburg having double digit increases.

Considering the poor state of the economy, Chuck E. Cheese's is performing exceedingly well. We attribute this to:

• CEC's excellent management
• Being a community-based, affordable eatertainment destination, compared to just a restaurant, as most restaurants are fairing worse in the recession
• Parent's reluctance to cut-back on treats for their kids (see Is the recession creating new leisure time habits? (www.whitehutchinson.com/ news/ lenews/ 2009/ may/ article102.shtml#article) in this issue).

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