CEC Entertainment has booked a 47 per cent drop in second-quarter earnings, as the parent company of the Chuck E. Cheese FEC chain was hurt by a tax adjustment and the weak restaurant environment.

During the period, CEC reported a profit of US$4.8m, down from $9m a year earlier. The latest quarter included a tax charge of 13 cents a share. Revenue slid 2.1 per cent to $181m.

President and chief executive Michael Magusiak attributed a 2.2 per cent decrease in same-store sales during the quarter to lower discounts in many of CEC’s coupon offers, an economic slowdown in June and very strong box-office receipts for children and family movies, which are rivals for customers’ entertainment dollars.