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Table\ue000 of\ue000 Contents
Index\ue000 to\ue000 Financial\ue000 Statements
\ue000\ue000
UNITED\ue000 STATES
SECURITIES\ue000 AND\ue000 EXCHANGE\ue000 COMMISSION
Washington,\ue000 D.C.\ue000 20549
\ue000
\ue000
FORM\ue000 10-K
\ue000
\ue000
\ue000
x
ANNUAL\ue000 REPORT\ue000 PURSUANT\ue000 TO\ue000 SECTION\ue000 13\ue000 OR\ue000 15(d)\ue000 OF\ue000 THE\ue000 SECURITIES\ue000 EXCHANGE\ue000 ACT\ue000 OF\ue000 1934
For\ue000 the\ue000 fiscal\ue000 year\ue000 ended\ue000 December\ue000 28,\ue000 2008
OR
\ue000
\u00ae
TRANSITION\ue000 REPORT\ue000 PURSUANT\ue000 TO\ue000 SECTION\ue000 13\ue000 OR\ue000 15(d)\ue000 OF\ue000 THE\ue000 SECURITIES\ue000 EXCHANGE\ue000 ACT\ue000 OF\ue000 1934
For\ue000 the\ue000 transition\ue000 period\ue000 from\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000 to\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000
Commission\ue000 File\ue000 Number:\ue000 001-13687
\ue000
\ue000
CEC\ue000 ENTERTAINMENT,\ue000 INC.
(Exact\ue000 name\ue000 of\ue000 registrant\ue000 as\ue000 specified\ue000 in\ue000 its\ue000 charter)
\ue000
\ue000
\ue000
Kansas
\ue000
48-0905805
(State\ue000 or\ue000 other\ue000 jurisdiction\ue000 of\ue000 incorporation\ue000 or\ue000 organization)
\ue000
(IRS\ue000 Employer\ue000 Identification\ue000 No.)
4441\ue000 West\ue000 Airport\ue000 Freeway
Irving,\ue000 Texas
\ue000
75062
(Address\ue000 of\ue000 principal\ue000 executive\ue000 offices)
\ue000
(Zip\ue000 Code)
(972)\ue000 258-8507
(Registrant\u2019s\ue000 telephone\ue000 number,\ue000 including\ue000 area\ue000 code)
\ue000
\ue000
Securities\ue000 registered\ue000 pursuant\ue000 to\ue000 Section\ue000 12(b)\ue000 of\ue000 the\ue000 Act:
\ue000
Title\ue000 of\ue000 each
class
\ue000
Name\ue000 of\ue000 each\ue000 exchange\ue000 on\ue000 which
registered
Common\ue000 Stock,\ue000 $0.10\ue000 par\ue000 value
\ue000
New\ue000 York\ue000 Stock\ue000 Exchange
Securities\ue000 registered\ue000 pursuant\ue000 to\ue000 Section\ue000 12(g)\ue000 of\ue000 the\ue000 Act:
None
\ue000
\ue000

Indicate\ue000 by\ue000 check\ue000 mark\ue000 if\ue000 the\ue000 registrant\ue000 is\ue000 a\ue000 well-known\ue000 seasoned\ue000 issuer,\ue000 as\ue000 defined\ue000 in\ue000 Rule\ue000 405\ue000 of\ue000 the\ue000 Securities\ue000 Act.\ue000\ue000\ue000\ue000 Yes\ue000 \ue000\u00ae\ue000\ue000\ue000\ue000 No\ue000 \ue000x
Indicate\ue000 by\ue000 check\ue000 mark\ue000 if\ue000 the\ue000 registrant\ue000 is\ue000 not\ue000 required\ue000 to\ue000 file\ue000 reports\ue000 pursuant\ue000 to\ue000 Section\ue000 13\ue000 or\ue000 Section\ue000 15(d)\ue000 of\ue000 the\ue000 Act.\ue000\ue000\ue000\ue000 Yes\ue000 \ue000\u00ae\ue000\ue000\ue000\ue000 No\ue000 \ue000x
Indicate\ue000 by\ue000 check\ue000 mark\ue000 whether\ue000 the\ue000 registrant\ue000 (1)\ue000 has\ue000 filed\ue000 all\ue000 reports\ue000 required\ue000 to\ue000 be\ue000 filed\ue000 by\ue000 Section\ue000 13\ue000 or\ue000 15(d)\ue000 of\ue000 the\ue000 Securities\ue000 Exchange\ue000 Act\ue000 of\ue000 1934\ue000 during

the\ue000 preceding\ue000 12\ue000 months\ue000 (or\ue000 for\ue000 such\ue000 shorter\ue000 period\ue000 that\ue000 the\ue000 registrant\ue000 was\ue000 required\ue000 to\ue000 file\ue000 such\ue000 reports),\ue000 and\ue000 (2)\ue000 has\ue000 been\ue000 subject\ue000 to\ue000 such\ue000 filing\ue000 requirements\ue000 for\ue000 the
past\ue000 90\ue000 days.\ue000\ue000\ue000\ue000 Yes\ue000 \ue000x\ue000\ue000\ue000\ue000 No\ue000 \ue000\u00ae

Indicate\ue000 by\ue000 check\ue000 mark\ue000 if\ue000 disclosure\ue000 of\ue000 delinquent\ue000 filers\ue000 pursuant\ue000 to\ue000 Item\ue000 405\ue000 of\ue000 Regulation\ue000 S-K\ue000 is\ue000 not\ue000 contained\ue000 herein,\ue000 and\ue000 will\ue000 not\ue000 be\ue000 contained,\ue000 to\ue000 the\ue000 best of\ue000 registrant\u2019s\ue000 knowledge,\ue000 in\ue000 definitive\ue000 proxy\ue000 or\ue000 information\ue000 statements\ue000 incorporated\ue000 by\ue000 reference\ue000 in\ue000 Part\ue000 III\ue000 of\ue000 this\ue000 Form\ue000 10-K\ue000 or\ue000 any\ue000 amendment\ue000 to\ue000 this\ue000 Form 10-K.\ue000 \ue000\u00ae

Indicate\ue000 by\ue000 check\ue000 mark\ue000 whether\ue000 the\ue000 registrant\ue000 is\ue000 a\ue000 large\ue000 accelerated\ue000 filer,\ue000 an\ue000 accelerated\ue000 filer,\ue000 a\ue000 non-accelerated\ue000 filer,\ue000 or\ue000 a\ue000 smaller\ue000 reporting\ue000 company.\ue000 See\ue000 the
definitions\ue000 of\ue000 \u201clarge\ue000 accelerated\ue000 filer,\u201d\ue000 \u201caccelerated\ue000 filer\u201d\ue000 and\ue000 \u201csmaller\ue000 reporting\ue000 company\u201d\ue000 in\ue000 Rule\ue000 12b-2\ue000 of\ue000 the\ue000 Exchange\ue000 Act:
Large\ue000 accelerated\ue000 filer\ue000x\ue000\ue000\ue000\ue000 Accelerated\ue000 filer\ue000\u00ae\ue000\ue000\ue000\ue000 Non-accelerated\ue000 filer\ue000\u00ae\ue000\ue000\ue000\ue000 (Do\ue000 not\ue000 check\ue000 if\ue000 a\ue000 smaller\ue000 reporting\ue000 company)

Smaller\ue000 reporting\ue000 company\ue000\u00ae
Indicate\ue000 by\ue000 check\ue000 mark\ue000 whether\ue000 the\ue000 registrant\ue000 is\ue000 a\ue000 shell\ue000 company\ue000 (as\ue000 defined\ue000 in\ue000 Rule\ue000 12b-2\ue000 of\ue000 the\ue000 Act).\ue000\ue000\ue000\ue000 Yes\ue000 \ue000\u00ae\ue000\ue000\ue000\ue000 No\ue000 \ue000x
As\ue000 of\ue000 June\ue000 27,\ue000 2008,\ue000 the\ue000 last\ue000 business\ue000 day\ue000 of\ue000 the\ue000 registrant\u2019s\ue000 most\ue000 recently\ue000 completed\ue000 second\ue000 fiscal\ue000 quarter,\ue000 the\ue000 aggregate\ue000 market\ue000 value\ue000 of\ue000 the\ue000 common\ue000 stock

b
eneficially\ue000 held\ue000 by\ue000 non-affiliates\ue000 of\ue000 the\ue000 registrant\ue000 was\ue000 $547,532,606.\ue000 (For\ue000 purposes\ue000 hereof,\ue000 directors,\ue000 executive\ue000 officers\ue000 and\ue000 10%\ue000 or\ue000 greater\ue000 stockholders\ue000 have\ue000 been
assumed\ue000 to\ue000 be\ue000 affiliates).
As\ue000 of\ue000 February\ue000 9,\ue000 2009,\ue000 an\ue000 aggregate\ue000 of\ue000 22,728,078\ue000 shares\ue000 of\ue000 the\ue000 registrant\u2019s\ue000 common\ue000 stock,\ue000 par\ue000 value\ue000 $0.10\ue000 per\ue000 share\ue000 were\ue000 outstanding.
DOCUMENTS\ue000 INCORPORATED\ue000 BY\ue000 REFERENCE
Portions\ue000 of\ue000 the\ue000 registrant\u2019s\ue000 Definitive\ue000 Proxy\ue000 Statement,\ue000 to\ue000 be\ue000 filed\ue000 pursuant\ue000 to\ue000 Section\ue000 14(a)\ue000 of\ue000 the\ue000 Securities\ue000 Exchange\ue000 Act\ue000 of\ue000 1934\ue000 in\ue000 connection\ue000 with\ue000 the
registrant\u2019s\ue000 2009\ue000 annual\ue000 meeting\ue000 of\ue000 stockholders,\ue000 are\ue000 incorporated\ue000 by\ue000 reference\ue000 in\ue000 Part\ue000 III\ue000 of\ue000 this\ue000 report.
\ue000
\ue000\ue000
Processed and formatted by SEC Watch - Visit SECWatch.com
Table\ue000 of\ue000 Contents
Index\ue000 to\ue000 Financial\ue000 Statements
CEC\ue000 ENTERTAINMENT,\ue000 INC.
TABLE\ue000 OF\ue000 CONTENTS
\ue000
\ue000
\ue000\ue000 \ue000
\ue000\ue000Page
\ue000\ue000Forward-Looking\ue000 Statements
\ue000\ue000
3
PART\ue000 I
\ue000\ue000
\ue000\ue000
ITEM\ue000 1.\ue000\ue000Business
\ue000\ue000
4
ITEM\ue000 1A.\ue000\ue000Risk\ue000 Factors
\ue000\ue000
9
ITEM\ue000 1B.\ue000\ue000Unresolved\ue000 Staff\ue000 Comments
\ue000\ue000
13
ITEM\ue000 2.\ue000\ue000Properties
\ue000\ue000
14
ITEM\ue000 3.\ue000\ue000Legal\ue000 Proceedings
\ue000\ue000
15
ITEM\ue000 4.\ue000\ue000Submission\ue000 of\ue000 Matters\ue000 to\ue000 a\ue000 Vote\ue000 of\ue000 Security\ue000 Holders
\ue000\ue000
16
PART\ue000 II\ue000\ue000
\ue000\ue000
ITEM\ue000 5.\ue000\ue000Market\ue000 for\ue000 Registrant\u2019s\ue000 Common\ue000 Equity,\ue000 Related\ue000 Stockholder\ue000 Matters\ue000 and\ue000 Issuer\ue000 Purchases\ue000 of\ue000 Equity\ue000 Securities
\ue000\ue000
17
ITEM\ue000 6.\ue000\ue000Selected\ue000 Financial\ue000 Data
\ue000\ue000
19
ITEM\ue000 7.\ue000\ue000Management\u2019s\ue000 Discussion\ue000 and\ue000 Analysis\ue000 of\ue000 Financial\ue000 Condition\ue000 and\ue000 Results\ue000 of\ue000 Operations
\ue000\ue000
20
ITEM\ue000 7A.\ue000\ue000Quantitative\ue000 and\ue000 Qualitative\ue000 Disclosures\ue000 About\ue000 Market\ue000 Risk
\ue000\ue000
35
ITEM\ue000 8.\ue000\ue000Financial\ue000 Statements\ue000 and\ue000 Supplementary\ue000 Data
\ue000\ue000
36
ITEM\ue000 9.\ue000\ue000Changes\ue000 in\ue000 and\ue000 Disagreements\ue000 with\ue000 Accountants\ue000 on\ue000 Accounting\ue000 and\ue000 Financial\ue000 Disclosure
\ue000\ue000
59
ITEM\ue000 9A.\ue000\ue000Controls\ue000 and\ue000 Procedures
\ue000\ue000
59
ITEM\ue000 9B.\ue000\ue000Other\ue000 Information
\ue000\ue000
59
PART\ue000 III\ue000\ue000
\ue000\ue000
ITEM\ue000 10.\ue000\ue000Directors,\ue000 Executive\ue000 Officers\ue000 and\ue000 Corporate\ue000 Governance
\ue000\ue000
60
ITEM\ue000 11.\ue000\ue000Executive\ue000 Compensation
\ue000\ue000
60
ITEM\ue000 12.\ue000\ue000Security\ue000 Ownership\ue000 of\ue000 Certain\ue000 Beneficial\ue000 Owners\ue000 and\ue000 Management\ue000 and\ue000 Related\ue000 Stockholder\ue000 Matters
\ue000\ue000
60
ITEM\ue000 13.\ue000\ue000Certain\ue000 Relationships\ue000 and\ue000 Related\ue000 Transactions,\ue000 and\ue000 Director\ue000 Independence
\ue000\ue000
60
ITEM\ue000 14.\ue000\ue000Principal\ue000 Accountant\ue000 Fees\ue000 and\ue000 Services
\ue000\ue000
60
PART\ue000 IV\ue000\ue000
\ue000\ue000
ITEM\ue000 15.\ue000\ue000Exhibits\ue000 and\ue000 Financial\ue000 Statement\ue000 Schedules
\ue000\ue000
60
Signatures\ue000\ue000
\ue000\ue000
61
\ue000
2
Processed and formatted by SEC Watch - Visit SECWatch.com
Table\ue000 of\ue000 Contents
Index\ue000 to\ue000 Financial\ue000 Statements
Within\ue000 this\ue000 report,\ue000 unless\ue000 otherwise\ue000 indicated,\ue000 any\ue000 use\ue000 of\ue000 the\ue000 terms\ue000 \u201cCEC\ue000 Entertainment,\u201d\ue000 the\ue000 \u201cCompany,\u201d\ue000 \u201cwe,\u201d\ue000 \u201cus\u201d\ue000 and\ue000 \u201cour\u201d
refer\ue000 to\ue000 CEC\ue000 Entertainment,\ue000 Inc\ue000 and\ue000 its\ue000 consolidated\ue000 subsidiaries.
Forward-Looking\ue000 Statements

Certain\ue000 statements\ue000 in\ue000 this\ue000 report,\ue000 other\ue000 than\ue000 historical\ue000 information,\ue000 may\ue000 be\ue000 considered\ue000 \u201cforward-looking\ue000 statements\u201d\ue000 within\ue000 the\ue000 meaning of\ue000 the\ue000 \u201csafe\ue000 harbor\u201d\ue000 provisions\ue000 of\ue000 the\ue000 Private\ue000 Securities\ue000 Litigation\ue000 Reform\ue000 Act\ue000 of\ue000 1995,\ue000 and\ue000 are\ue000 subject\ue000 to\ue000 various\ue000 risks,\ue000 uncertainties\ue000 and assumptions.\ue000 Statements\ue000 that\ue000 are\ue000 not\ue000 historical\ue000 in\ue000 nature,\ue000 and\ue000 which\ue000 may\ue000 be\ue000 identified\ue000 by\ue000 the\ue000 use\ue000 of\ue000 words\ue000 such\ue000 as\ue000 \u201cmay,\u201d\ue000 \u201cshould,\u201d\ue000 \u201ccould,\u201d \u201cbelieve,\u201d\ue000 \u201cpredict,\u201d\ue000 \u201cpotential,\u201d\ue000 \u201ccontinue,\u201d\ue000 \u201cplan,\u201d\ue000 \u201cintend,\u201d\ue000 \u201cexpect,\u201d\ue000 \u201canticipate,\u201d\ue000 \u201cfuture,\u201d\ue000 \u201cproject,\u201d\ue000 \u201cestimate\u201d\ue000 and\ue000 similar\ue000 expressions (or\ue000 the\ue000 negative\ue000 of\ue000 such\ue000 expressions)\ue000 are\ue000 forward-looking\ue000 statements.\ue000 Forward-looking\ue000 statements\ue000 are\ue000 made\ue000 based\ue000 on\ue000 management\u2019s\ue000 current expectations\ue000 and\ue000 beliefs\ue000 concerning\ue000 future\ue000 events\ue000 and,\ue000 therefore,\ue000 involve\ue000 a\ue000 number\ue000 of\ue000 assumptions,\ue000 risks\ue000 and\ue000 uncertainties,\ue000 including\ue000 the\ue000 risk factors\ue000 described\ue000 in\ue000 Item\ue000 1A\ue000 \u201cRisk\ue000 Factors\u201d\ue000 of\ue000 this\ue000 Annual\ue000 Report\ue000 on\ue000 Form\ue000 10-K.\ue000 Should\ue000 one\ue000 or\ue000 more\ue000 of\ue000 these\ue000 risks\ue000 or\ue000 uncertainties\ue000 materialize, or\ue000 should\ue000 underlying\ue000 assumptions\ue000 prove\ue000 incorrect,\ue000 actual\ue000 results\ue000 may\ue000 differ\ue000 from\ue000 those\ue000 anticipated,\ue000 estimated\ue000 or\ue000 expected.\ue000 Factors\ue000 that\ue000 could cause\ue000 actual\ue000 results\ue000 to\ue000 differ\ue000 materially\ue000 from\ue000 those\ue000 contemplated\ue000 by\ue000 forward-looking\ue000 statements\ue000 include,\ue000 but\ue000 are\ue000 not\ue000 limited\ue000 to:

\ue000
\u2022
\ue000Changes\ue000 in\ue000 consumer\ue000 discretionary\ue000 spending\ue000 and\ue000 general\ue000 economic\ue000 conditions;
\ue000
\u2022
\ue000Disruptions\ue000 in\ue000 the\ue000 financial\ue000 markets\ue000 affecting\ue000 the\ue000 availability\ue000 and\ue000 cost\ue000 of\ue000 credit\ue000 and\ue000 our\ue000 ability\ue000 to\ue000 maintain\ue000 adequate\ue000 insurance\ue000 coverage;
\ue000
\u2022
\ue000Our\ue000 ability\ue000 to\ue000 successfully\ue000 implement\ue000 our\ue000 business\ue000 development\ue000 strategies;
\ue000
\u2022
\ue000Costs\ue000 incurred\ue000 in\ue000 connection\ue000 with\ue000 our\ue000 business\ue000 development\ue000 strategies;
\ue000
\u2022
\ue000Competition\ue000 in\ue000 both\ue000 the\ue000 restaurant\ue000 and\ue000 entertainment\ue000 industries;
\ue000
\u2022
\ue000Loss\ue000 of\ue000 certain\ue000 key\ue000 personnel;
\ue000
\u2022
\ue000Increases\ue000 in\ue000 food,\ue000 labor\ue000 and\ue000 other\ue000 operating\ue000 costs;
\ue000
\u2022
\ue000Changes\ue000 in\ue000 consumers\u2019\ue000 health,\ue000 nutrition\ue000 and\ue000 dietary\ue000 preferences;
\ue000
\u2022
\ue000Negative\ue000 publicity\ue000 concerning\ue000 food\ue000 quality,\ue000 health,\ue000 safety\ue000 and\ue000 other\ue000 issues;
\ue000
\u2022
\ue000Disruption\ue000 of\ue000 our\ue000 commodity\ue000 distribution\ue000 system;
\ue000
\u2022
\ue000Our\ue000 dependence\ue000 on\ue000 a\ue000 few\ue000 global\ue000 providers\ue000 for\ue000 the\ue000 procurement\ue000 of\ue000 games\ue000 and\ue000 rides;
\ue000
\u2022
\ue000Adverse\ue000 affects\ue000 of\ue000 local\ue000 conditions,\ue000 events\ue000 and\ue000 natural\ue000 disasters;
\ue000
\u2022
\ue000Fluctuations\ue000 in\ue000 our\ue000 quarterly\ue000 results\ue000 of\ue000 operations\ue000 due\ue000 to\ue000 seasonality;
\ue000
\u2022
\ue000Conditions\ue000 in\ue000 foreign\ue000 markets;
\ue000
\u2022
\ue000Risks\ue000 in\ue000 connection\ue000 with\ue000 owning\ue000 and\ue000 leasing\ue000 real\ue000 estate;
\ue000
\u2022
\ue000Our\ue000 ability\ue000 to\ue000 adequately\ue000 protect\ue000 our\ue000 trademarks\ue000 or\ue000 other\ue000 proprietary\ue000 rights;
\ue000
\u2022
\ue000Government\ue000 regulations,\ue000 litigation,\ue000 product\ue000 liability\ue000 claims\ue000 and\ue000 product\ue000 recalls;
\ue000
\u2022
\ue000Disruptions\ue000 of\ue000 our\ue000 information\ue000 technology\ue000 systems;
\ue000
\u2022
\ue000Changes\ue000 in\ue000 financial\ue000 accounting\ue000 standards\ue000 or\ue000 our\ue000 interpretations\ue000 of\ue000 existing\ue000 standards;\ue000 and
\ue000
\u2022
\ue000Failure\ue000 to\ue000 establish,\ue000 maintain\ue000 and\ue000 apply\ue000 adequate\ue000 internal\ue000 control\ue000 over\ue000 financial\ue000 reporting.

The\ue000 forward-looking\ue000 statements\ue000 made\ue000 in\ue000 this\ue000 report\ue000 relate\ue000 only\ue000 to\ue000 events\ue000 as\ue000 of\ue000 the\ue000 date\ue000 on\ue000 which\ue000 the\ue000 statements\ue000 were\ue000 made.\ue000 Except\ue000 as may\ue000 be\ue000 required\ue000 by\ue000 law,\ue000 we\ue000 undertake\ue000 no\ue000 obligation\ue000 to\ue000 update\ue000 our\ue000 forward-looking\ue000 statements\ue000 to\ue000 reflect\ue000 events\ue000 and\ue000 circumstances\ue000 after\ue000 the date\ue000 on\ue000 which\ue000 the\ue000 statements\ue000 were\ue000 made\ue000 or\ue000 to\ue000 reflect\ue000 the\ue000 occurrence\ue000 of\ue000 unanticipated\ue000 events.

\ue000
3
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