Chuck E. Cheese Says Swine Flu Hurts Sales

NEW YORK (AP) — Chuck E. Cheese owner CEC Entertainment Inc. on Friday said the swine flu could be responsible for a 20 percent drop in same-store sales during the first three days of the current week.

Still, shares rose $3.630, or 11.9 percent, to $34.09 in midday trading, a day after the company reported strong first-quarter earnings that beat analyst expectations.

In a conference call on Friday to discuss results, the company said same-store sales, or sales in stores open at least a year, rose 0.8 percent during the first three weeks of April. But they dropped 8 percent during the fourth week and are down 20 percent during the first three days of the current week beginning Sunday, the company said.

In the first quarter, same-store sales were down 0.1 percent.

Same-store sales, or sales in stores open at least year, are a key retail metric known because they measure growth at existing stores rather than newly opened ones.

The third week in April "may have been negatively impacted by media surrounding swine flu," said Chief Executive Michael Magusiak, adding that may have accelerated in the current week.