U.S. Resto Chain Chuck E. Cheese Explores Sale

Chuck E. Cheese, the US restaurant chain that emerged from bankruptcy three years ago, is exploring a sale amid acquisition interest, according to people familiar with the matter, as reported by Abigail Summerville for Reuters.

The company is working with investment bank Goldman Sachs on an auction process that could attract private equity firms as well as peers such as Dave & Busters Entertainment. I Photo: Mike Mozart Flickr

The Irving, Texas-based company, known for its arcade games and rat mascot Charles Entertainment "Chuck E." Cheese, is working with investment bank Goldman Sachs on an auction process that could attract private equity firms as well as peers such as Dave & Busters Entertainment, the sources said.

CEC Entertainment, the parent company of Chuck E. Cheese, has told potential acquirers that it expects to generate around $1.2 billion in revenue and $195 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) this year, the sources added.

Based on the valuation metrics of its peers, the company could fetch well over $1 billion in a sale, according to the sources.

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