CEC Cec Entertainment Dashboard

Risks

• Negative publicity concerning food quality, health, general safety or other issues, and changes in consumer preferences, could negatively affect our brand image and reputation and adversely affect our consolidated financial results.
• If we are unable to successfully open new venues or appropriately update and evolve our current venue base, our business and our consolidated financial results could be adversely affected.
• We may not be successful in the implementation of our marketing strategy, which could adversely affect our business and our consolidated financial results.
• The restaurant and entertainment industries are highly competitive, and that competition could harm our business and our consolidated financial results.
• Economic uncertainty and changes in consumer discretionary spending could reduce sales at our venues and have an adverse effect on our business and our consolidated financial results.
• Our strategy to open international franchised venues may not be successful and may subject us to unanticipated conditions in foreign markets, which could adversely impact our business and our ability to operate effectively in those markets.
• Our business dealings with foreign franchisees and vendors are subject to United States and foreign anti-corruption law, and investigations or enforcement actions brought under such law could adversely impact our business and our ability to operate effectively in those markets.
• If we are unable to maintain and protect our information technology systems and technologies, we could suffer disruptions in our business, damage our reputation with customers, and incur substantial costs.
• Any disruption of our commodity distribution system could adversely affect our business and our consolidated financial results.
• Our procurement of games, rides, entertainment-related equipment, redemption prizes, and merchandise is dependent upon a few global providers, the loss of any of which could adversely affect our business and our consolidated financial results.
• We face risks with respect to product liability claims and product recalls, which could adversely affect our reputation, business and consolidated financial results.
• We are subject to various government regulations, which could adversely affect our business and our consolidated financial results.
• We may face litigation risks from customers, employees, franchisees and other third parties in the ordinary course of business, which could adversely affect our business and our consolidated financial results.
• We face potential liability with our gift cards and Play Pass cards under the property laws of some states.
• Our business may be adversely affected by local conditions, natural disasters, terrorist attacks and other events.
• Our business is seasonal, and quarterly results may fluctuate significantly as a result of this seasonality.
• Public health issues could adversely affect our consolidated financial results.
• Our current insurance policies may not provide adequate levels of coverage against all claims, and we could incur losses that are not covered by our insurance, which could adversely affect our business and our consolidated financial results.
• We may face labor shortages that could slow our growth and adversely impact our ability to operate our venues.
• We are dependent on the service of certain key executives, and the loss of any of these personnel could harm our business.
• Failure to establish and maintain effective internal control over financial reporting could have a material adverse effect on our business and operating results.
• We may not be able to adequately protect our trademarks or other proprietary rights, which could have an adverse effect on our business and our consolidated financial results.
• Fixed rental payments account for a significant portion of our cash operating expenses, which increases our vulnerability to general adverse economic and industry conditions and could limit our operating and financial flexibility.
• We may not be successful in integrating the operations of companies we acquire, which could have an adverse effect on our business and results of operations.
• Our substantial indebtedness could adversely affect our ability to raise additional capital or to fund our operations, expose us to interest rate risk to the extent of our variable rate debt, limit our ability to react to changes in the economy, and prevent us from making debt service payments.
• We may not be able to generate sufficient cash to service all of our indebtedness, and we may be forced to take other actions to satisfy our obligations under our indebtedness that may not be successful.