----

----

| x |   | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES      EXCHANGE ACT OF 1934 |
|---|--------|----------------------------------------------------------------------------------------------------------------------------|

| ¨ |   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|--------|------------------------------------------------------------------------------------------|

| Kansas                                                                                   |   | 48-0905805                        |
|------------------------------------------------------------------------------------------|--------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization)                           |   | (IRS Employer Identification No.) |
|                                                                                     |   |                              |
| 4441 West Airport FreewayIrving, Texas                                                   |   | 75062                             |
| (Address of principal executive offices)                                                 |   | (Zip Code)                        |
|                                                                                     |   |                              |
| (972) 258-8507                                                                           |
| (Registrant’s telephone number, including area code)                               |
|                                                                                     |   |                              |
| Not applicable                                                                           |
|  (Former name, former address and former fiscal year, if changed since last report) |

----

|   |
|--------|

----

|       |   |                                                                                                             |   |  Page |
|------------|--------|------------------------------------------------------------------------------------------------------------------|--------|------------|
| PART I     |   | FINANCIAL INFORMATION                                                                                            |   |       |
|       |   |                                                                                                             |   |       |
| ITEM 1.    |   | Financial Statements (Unaudited)                                                                                 |   |       |
|       |   |                                                                                                             |   |       |
|       |   | Condensed Consolidated Balance Sheets at June 28, 2009 and December 28, 2008                                     |   | 3          |
|       |   |                                                                                                             |   |       |
|       |   | Condensed Consolidated Statements of Earnings for the three and six months ended June 28, 2009 and June 29, 2008 |   |  4    |
|       |   |                                                                                                             |   |       |
|       |   | Condensed Consolidated Statement of Changes in Stockholders’ Equity for the six months ended June 28, 2009 |   |  5    |
|       |   |                                                                                                             |   |       |
|       |   | Condensed Consolidated Statements of Cash Flows for the six months ended June 28, 2009 and June 29, 2008         |   |  6    |
|       |   |                                                                                                             |   |       |
|       |   | Notes to Condensed Consolidated Financial Statements                                                             |   | 7          |
|       |   |                                                                                                             |   |       |
| ITEM 2.    |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations                      |   | 15         |
|       |   |                                                                                                             |   |       |
| ITEM 3.    |   | Quantitative and Qualitative Disclosures About Market Risk                                                       |   | 27         |
|       |   |                                                                                                             |   |       |
| ITEM 4.    |   | Controls and Procedures                                                                                          |   | 27         |
|       |   |                                                                                                             |   |       |
| PART II    |   | OTHER INFORMATION                                                                                                |   |       |
|       |   |                                                                                                             |   |       |
| ITEM 1.    |   | Legal Proceedings                                                                                                |   | 29         |
|       |   |                                                                                                             |   |       |
| ITEM 1A.   |   | Risk Factors                                                                                                     |   | 29         |
|       |   |                                                                                                             |   |       |
| ITEM 2.    |   | Unregistered Sales of Equity Securities and Use of Proceeds                                                      |   | 30         |
|       |   |                                                                                                             |   |       |
| ITEM 4.    |   | Submission of Matters to a Vote of Security Holders                                                              |   | 30         |
|       |   |                                                                                                             |   |       |
| ITEM 6.    |   | Exhibits                                                                                                         |   | 31         |
|       |   |                                                                                                             |   |       |
| SIGNATURES |   | 32                                                                                                               |
|       |   |                                                                                                             |   |       |
|       |   |                                                                                                             |   |       |
|       |   |                                                                                                             |   |       |
|       |   |                                                                                                             |   |       |
|       |   |                                                                                                             |   |       |
|       |   |                                                                                                             |   |       |

----

PART I

ITEM 1

|                                                                                                                |   | June 28, |     |   | December 28, |   |
|---------------------------------------------------------------------------------------------------------------------|--------|----------|----------|--------|--------------|--------|
|                                                                                                                |   | 2009     |     |   | 2008         |   |
| ASSETS                                                                                                              |   |     |     |   |         |   |
|                                                                                                                |   |     |     |   |         |   |
| Current assets:                                                                                                     |   |     |     |   |         |   |
| Cash and cash equivalents                                                                                           |   | $        | 16,517   |   |         | $      | 17,769 |   |
| Accounts receivable                                                                                                 |   |     | 17,770   |   |         |   | 31,734 |   |
| Inventories                                                                                                         |   |     | 15,028   |   |         |   | 14,184 |   |
| Prepaid expenses                                                                                                    |   |     | 14,772   |   |         |   | 11,192 |   |
| Deferred tax asset                                                                                                  |   |     | 3,878    |   |         |   | 3,878 |   |
|                                                                                                                |   |     |     |   |         |   |   |   |
| Total current assets                                                                                                |   |     | 67,965   |   |         |   | 78,757 |   |
|                                                                                                                |   |     |     |   |         |   |   |   |
| Property and equipment, net                                                                                         |   |     | 659,296  |   |         |   | 666,443 |   |
| Other noncurrent assets                                                                                             |   |     | 2,236    |   |         |   | 2,240 |   |
|                                                                                                                |   |     |     |   |         |   |   |   |
| Total assets                                                                                                        |   | $        | 729,497  |   |         | $      | 747,440 |   |
|                                                                                                                |   |     |     |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                          |   |     |     |   |         |   |   |   |
|                                                                                                                |   |     |     |   |         |   |   |   |
| Current liabilities:                                                                                                |   |     |     |   |         |   |   |   |
| Current portion of long-term debt                                                                                   |   | $        | 843      |   |         | $      | 806 |   |
| Accounts payable                                                                                                    |   |     | 32,801   |   |         |   | 37,116 |   |
| Accrued expenses                                                                                                    |   |     | 31,860   |   |         |   | 33,716 |   |
| Unearned revenues                                                                                                   |   |     | 6,602    |   |         |   | 7,575 |   |
| Accrued interest                                                                                                    |   |     | 1,467    |   |         |   | 3,457 |   |
| Derivative instrument liability                                                                                     |   |     | 4,220    |   |         |   | 3,830 |   |
|                                                                                                                |   |     |     |   |         |   |   |   |
| Total current liabilities                                                                                           |   |     | 77,793   |   |         |   | 86,500 |   |
|                                                                                                                |   |     |     |   |         |   |   |   |
| Long-term debt, less current portion                                                                                |   |     | 358,594  |   |         |   | 413,252 |   |
| Deferred rent                                                                                                       |   |     | 76,480   |   |         |   | 76,617 |   |
| Deferred tax liability                                                                                              |   |     | 24,315   |   |         |   | 23,396 |   |
| Accrued insurance                                                                                                   |   |     | 11,725   |   |         |   | 11,190 |   |
| Derivative instrument liability                                                                                     |   |     | 2,211    |   |         |   | 3,097 |   |
| Accrued income taxes                                                                                                |   |     | 6,779    |   |         |   | 4,802 |   |
|                                                                                                                |   |     |     |   |         |   |   |   |
| Total liabilities                                                                                                   |   |     | 557,897  |   |         |   | 618,854 |   |
|                                                                                                                |   |     |     |   |         |   |   |   |
| Commitments and contingencies (Note 5)                                                                              |   |     |     |   |         |   |   |   |
|                                                                                                                |   |     |     |   |         |   |   |   |
| Stockholders’ equity:                                                                                         |   |     |     |   |         |   |   |   |
| Common stock, $0.10 par value; authorized 100,000,000 shares; 60,904,143 and 59,860,722 shares issued, respectively |   |     | 6,090    |   |         |   | 5,986 |   |
| Capital in excess of par                                                                                            |   |     | 416,927  |   |         |   | 398,124 |   |
| Retained earnings                                                                                                   |   |     | 684,267  |   |         |   | 641,220 |   |
| Accumulated other comprehensive loss                                                                                |   |     | (749     | )      |         |   | (1,892 | ) |
| Less treasury stock, at cost; 37,814,265 and 37,169,265 shares, respectively                                        |   |     | (934,935 | )      |         |   | (914,852 | ) |
|                                                                                                                |   |     |     |   |         |   |   |   |
| Total stockholders’ equity                                                                                    |   |     | 171,600  |   |         |   | 128,586 |   |
|                                                                                                                |   |     |     |   |         |   |   |   |
| Total liabilities and stockholders’ equity                                                                    |   | $        | 729,497  |   |         | $      | 747,440 |   |

----

CONDENSED

|                                                                                                                       |   | Three Months Ended |    |   | Six Months Ended |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                                                                                                       |   | June 28,           |    |   | June 29,         |   |   | June 28, |   |   | June 29, |   |
|                                                                                                                       |   | 2009               |    |   | 2008             |   |   | 2009 |   |   | 2008 |   |
| REVENUES                                                                                                                   |   |               |    |   |             |   |   |   |   |   |   |   |
| Food and beverage sales                                                                                                    |   | $                  | 91,123  |   |             | $      | 96,783 |   |   | $ | 219,602 |   |   | $ | 220,988 |   |
| Entertainment and merchandise sales                                                                                        |   |               | 92,676  |   |             |   | 94,571 |   |   |   | 211,257 |   |   |   | 214,585 |   |
|                                                                                                                       |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Company store sales                                                                                                        |   |               | 183,799 |   |             |   | 191,354 |   |   |   | 430,859 |   |   |   | 435,573 |   |
| Franchise fees and royalties                                                                                               |   |               | 996     |   |             |   | 1,140 |   |   |   | 2,069 |   |   |   | 2,097 |   |
|                                                                                                                       |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total revenues                                                                                                             |   |               | 184,795 |   |             |   | 192,494 |   |   |   | 432,928 |   |   |   | 437,670 |   |
|                                                                                                                       |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING COSTS AND EXPENSES                                                                                               |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Company store operating costs:                                                                                             |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Cost of food and beverage (exclusive of labor expenses, depreciation and amortization shown separately below)              |   |               | 20,612  |   |             |   | 22,892 |   |   |   | 47,758 |   |   |   | 51,157 |   |
| Cost of entertainment and merchandise (exclusive of labor expenses, depreciation, and amortization shown separately below) |   |               | 8,360   |   |             |   | 8,210 |   |   |   | 19,124 |   |   |   | 18,042 |   |
|                                                                                                                       |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                       |   |               | 28,972  |   |             |   | 31,102 |   |   |   | 66,882 |   |   |   | 69,199 |   |
| Labor expenses                                                                                                             |   |               | 52,449  |   |             |   | 54,436 |   |   |   | 112,945 |   |   |   | 116,672 |   |
| Depreciation and amortization                                                                                              |   |               | 19,040  |   |             |   | 18,241 |   |   |   | 37,954 |   |   |   | 36,705 |   |
| Rent expense                                                                                                               |   |               | 16,719  |   |             |   | 16,357 |   |   |   | 33,633 |   |   |   | 32,853 |   |
| Other store operating expenses                                                                                             |   |               | 30,285  |   |             |   | 27,811 |   |   |   | 60,409 |   |   |   | 58,449 |   |
|                                                                                                                       |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total company store operating costs                                                                                        |   |               | 147,465 |   |             |   | 147,947 |   |   |   | 311,823 |   |   |   | 313,878 |   |
| Advertising expense                                                                                                        |   |               | 8,637   |   |             |   | 7,902 |   |   |   | 18,681 |   |   |   | 18,021 |   |
| General and administrative expenses                                                                                        |   |               | 11,738  |   |             |   | 13,967 |   |   |   | 26,255 |   |   |   | 27,255 |   |
| Asset impairments                                                                                                          |   |               | -       |   |             |   | 137 |   |   |   | - |   |   |   | 137 |   |
|                                                                                                                       |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total operating costs and expenses                                                                                         |   |               | 167,840 |   |             |   | 169,953 |   |   |   | 356,759 |   |   |   | 359,291 |   |
|                                                                                                                       |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                                                                           |   |               | 16,955  |   |             |   | 22,541 |   |   |   | 76,169 |   |   |   | 78,379 |   |
|                                                                                                                       |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net                                                                                                      |   |               | 3,095   |   |             |   | 4,063 |   |   |   | 6,169 |   |   |   | 7,896 |   |
|                                                                                                                       |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                                                                                                 |   |               | 13,860  |   |             |   | 18,478 |   |   |   | 70,000 |   |   |   | 70,483 |   |
|                                                                                                                       |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                                                                                                               |   |               | 4,866   |   |             |   | 7,170 |   |   |   | 26,953 |   |   |   | 26,264 |   |
|                                                                                                                       |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                                 |   | $                  | 8,994   |   |             | $      | 11,308 |   |   | $ | 43,047 |   |   | $ | 44,219 |   |
|                                                                                                                       |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share:                                                                                                        |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                      |   | $                  | 0.39    |   |             | $      | 0.48 |   |   | $ | 1.88 |   |   | $ | 1.77 |   |
| Diluted                                                                                                                    |   | $                  | 0.39    |   |             | $      | 0.47 |   |   | $ | 1.86 |   |   | $ | 1.75 |   |
|                                                                                                                       |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding:                                                                                       |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                      |   |               | 23,048  |   |             |   | 23,710 |   |   |   | 22,933 |   |   |   | 24,971 |   |
| Diluted                                                                                                                    |   |               | 23,214  |   |             |   | 24,110 |   |   |   | 23,104 |   |   |   | 25,277 |   |

----

CONDENSED

|                                                                 |   | Common Stock |       |   | Capital In Excess of |   |   | Retained |   |   | Accumulated Other Comprehensive |   |   | Treasury Stock |    |   |   |   |
|----------------------------------------------------------------------|--------|--------------|------------|--------|----------------------|--------|--------|----------|--------|--------|---------------------------------|--------|--------|----------------|---------|--------|--------|--------|
|                                                                 |   | Shares       |       |   | Amount               |   |   | Par      |   |   | Earnings                        |   |   | Loss           |    |   | Shares |   |   | Amount |   |   | Total |   |
|                                                                 |   |         |       |   |                 |   |   |     |   |   |                            |   |   |           |    |   |   |   |   |   |   |   |   |   |
| Balance at December 29, 2008                                         |   |         | 59,860,722 |   |                 | $      | 5,986  |     |   | $      | 398,124                         |   |   | $              | 641,220 |   |   | $      | (1,892 | ) |   |   | 37,169,265 |   |   | $ | (914,852 | ) |   | $ | 128,586 |   |
| Net income                                                           |   |         | -          |   |                 |   | -      |     |   |   | -                               |   |   |           | 43,047  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 43,047 |   |
| Change in fair value of cash flow hedge, net ofincome taxes of $440  |   |         | -          |   |                 |   | -      |     |   |   | -                               |   |   |           | -       |   |   |   | (718 | ) |   |   | - |   |   |   | - |   |   |   | (718 | ) |
| Hedging loss realized in earnings, net ofincome taxes of $629        |   |         | -          |   |                 |   | -      |     |   |   | -                               |   |   |           | -       |   |   |   | 1,026 |   |   |   | - |   |   |   | - |   |   |   | 1,026 |   |
| Foreign currency translation adjustments, net ofincome taxes of $158 |   |         | -          |   |                 |   | -      |     |   |   | -                               |   |   |           | -       |   |   |   | 835 |   |   |   | - |   |   |   | - |   |   |   | 835 |   |
| Comprehensive income                                                 |   |         |       |   |                 |   |   |     |   |   |                            |   |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 44,190 |   |
|                                                                 |   |         |       |   |                 |   |   |     |   |   |                            |   |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock-based compensation costs                                       |   |         | -          |   |                 |   | -      |     |   |   | 4,286                           |   |   |           | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,286 |   |
| Stock options exercised                                              |   |         | 735,105    |   |                 |   | 74     |     |   |   | 14,675                          |   |   |           | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 14,749 |   |
| Restricted stock issued, net of forfeitures                          |   |         | 341,772    |   |                 |   | 34     |     |   |   | (34                             | )      |   |           | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Tax benefit from stock options andrestricted stock                   |   |         | -          |   |                 |   | -      |     |   |   | 646                             |   |   |           | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 646 |   |
| Restricted stock returned for taxes                                  |   |         | (57,249    | )      |                 |   | (6     | )        |   |   | (1,345                          | )      |   |           | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,351 | ) |
| Common stock issued under 401(k) plan                                |   |         | 23,793     |   |                 |   | 2      |     |   |   | 575                             |   |   |           | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 577 |   |
| Purchases of treasury stock                                          |   |         | -          |   |                 |   | -      |     |   |   | -                               |   |   |           | -       |   |   |   | - |   |   |   | 645,000 |   |   |   | (20,083 | ) |   |   | (20,083 | ) |
|                                                                 |   |         |       |   |                 |   |   |     |   |   |                            |   |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at June 28, 2009                                             |   |         | 60,904,143 |   |                 | $      | 6,090  |     |   | $      | 416,927                         |   |   | $              | 684,267 |   |   | $      | (749 | ) |   |   | 37,814,265 |   |   | $ | (934,935 | ) |   | $ | 171,600 |   |

----

CONDENSED

|                                                                              |   | Six Months Ended |    |
|-----------------------------------------------------------------------------------|--------|------------------|---------|
|                                                                              |   | June 28,         |    |   | June 29, |   |
|                                                                              |   | 2009             |    |   | 2008 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                             |   |             |    |   |   |   |
| Net income                                                                        |   | $                | 43,047  |   |   | $ | 44,219 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |             |    |   |   |   |   |   |
| Depreciation and amortization                                                     |   |             | 38,422  |   |   |   | 36,843 |   |
| Deferred income taxes                                                             |   |             | 1,968   |   |   |   | (1,487 | ) |
| Stock-based compensation expense                                                  |   |             | 4,183   |   |   |   | 2,602 |   |
| Deferred lease rentals                                                            |   |             | (212    | ) |   |   | 1,127 |   |
| Deferred debt financing costs                                                     |   |             | 141     |   |   |   | 142 |   |
| Loss on asset disposals, net                                                      |   |             | 1,380   |   |   |   | 941 |   |
| Other adjustment                                                                  |   |             | (1      | ) |   |   | - |   |
| Changes in operating assets and liabilities:                                      |   |             |    |   |   |   |   |   |
| Accounts receivable                                                               |   |             | 13,919  |   |   |   | 2,164 |   |
| Inventories                                                                       |   |             | (843    | ) |   |   | (1,251 | ) |
| Prepaid expenses                                                                  |   |             | (3,579  | ) |   |   | 830 |   |
| Accounts payable                                                                  |   |             | (2,294  | ) |   |   | 2,078 |   |
| Accrued expenses                                                                  |   |             | 1,001   |   |   |   | 6,641 |   |
| Unearned revenues                                                                 |   |             | (973    | ) |   |   | (315 | ) |
| Accrued interest                                                                  |   |             | (1,990  | ) |   |   | 524 |   |
| Income taxes payable                                                              |   |             | (2,616  | ) |   |   | 8,624 |   |
| Deferred rent                                                                     |   |             | 75      |   |   |   | - |   |
|                                                                              |   |             |    |   |   |   |   |   |
| Net cash provided by operating activities                                         |   |             | 91,628  |   |   |   | 103,682 |   |
|                                                                              |   |             |    |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                             |   |             |    |   |   |   |   |   |
| Purchases of property and equipment                                               |   |             | (32,990 | ) |   |   | (39,342 | ) |
| Disposition of property and equipment                                             |   |             | -       |   |   |   | 2,223 |   |
| Other investing activities                                                        |   |             | (136    | ) |   |   | (209 | ) |
|                                                                              |   |             |    |   |   |   |   |   |
| Net cash used in investing activities                                             |   |             | (33,126 | ) |   |   | (37,328 | ) |
|                                                                              |   |             |    |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                             |   |             |    |   |   |   |   |   |
| Net proceeds from (payments on) line of credit                                    |   |             | (54,250 | ) |   |   | 77,700 |   |
| Payments on capital lease obligations                                             |   |             | (397    | ) |   |   | (371 | ) |
| Exercise of stock options                                                         |   |             | 14,749  |   |   |   | 17,089 |   |
| Excess tax benefit from exercise of stock options                                 |   |             | 1,848   |   |   |   | 60 |   |
| Payment of taxes for returned restricted shares                                   |   |             | (1,351  | ) |   |   | (1,003 | ) |
| Treasury stock acquired                                                           |   |             | (20,083 | ) |   |   | (160,845 | ) |
| Other financing activities                                                        |   |             | -       |   |   |   | (186 | ) |
|                                                                              |   |             |    |   |   |   |   |   |
| Net cash used in financing activities                                             |   |             | (59,484 | ) |   |   | (67,556 | ) |
|                                                                              |   |             |    |   |   |   |   |   |
| Effect of foreign exchange rate changes on cash                                   |   |             | (270    | ) |   |   | - |   |
|                                                                              |   |             |    |   |   |   |   |   |
| Change in cash and cash equivalents                                               |   |             | (1,252  | ) |   |   | (1,202 | ) |
|                                                                              |   |             |    |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                                  |   |             | 17,769  |   |   |   | 18,373 |   |
|                                                                              |   |             |    |   |   |   |   |   |
| Cash and cash equivalents at end of period                                        |   | $                | 16,517  |   |   | $ | 17,171 |   |
|                                                                              |   |             |    |   |   |   |   |   |
| SUPPLEMENTAL CASH FLOW INFORMATION:                                               |   |             |    |   |   |   |   |   |
| Interest paid                                                                     |   | $                | 6,537   |   |   | $ | 7,009 |   |
| Income taxes paid, net                                                            |   | $                | 16,954  |   |   | $ | 19,185 |   |
|                                                                              |   |             |    |   |   |   |   |   |
| NON-CASH INVESTING AND FINANCING ACTIVITIES:                                      |   |             |    |   |   |   |   |   |
| Accrued construction costs                                                        |   | $                | 3,960   |   |   | $ | 5,889 |   |
| Common stock issued under 401(k) plan                                             |   | $                | 577     |   |   | $ | 544 |   |
|                                                                              |   |             |    |   |   |   |   |   |

----

NOTES

|                          |   | June 28,       |   |   | December 28, |   |
|-------------------------------|--------|----------------|--------|--------|--------------|--------|
|                          |   | 2009           |   |   | 2008         |   |
|                          |   | (in thousands) |   |
|                          |   |           |   |   |         |   |
| Food and beverage             |   | $              | 3,553  |   |         | $      | 4,400 |   |
| Entertainment and merchandise |   |           | 11,475 |   |         |   | 9,784 |   |
|                          |   |           |   |   |         |   |   |   |
|                          |   | $              | 15,028 |   |         | $      | 14,184 |   |

----

|                                   |   | June 28,       |    |   | December 28, |   |
|----------------------------------------|--------|----------------|---------|--------|--------------|--------|
|                                   |   | 2009           |    |   | 2008         |   |
|                                   |   | (in thousands) |    |
|                                   |   |           |    |   |         |   |
| Revolving credit facility borrowings   |   | $              | 347,600 |   |         | $      | 401,850 |   |
| Obligations under capital leases       |   |           | 11,837  |   |         |   | 12,208 |   |
|                                   |   |           |    |   |         |   |   |   |
|                                   |   |           | 359,437 |   |         |   | 414,058 |   |
| Less current portion of capital leases |   |           | (843    | )      |         |   | (806 | ) |
|                                   |   |           |    |   |         |   |   |   |
|                                   |   | $              | 358,594 |   |         | $      | 413,252 |   |

----

|                                                         | Liability Derivatives                    |   | Liability Derivatives                      |
|--------------------------------------------------------------|------------------------------------------|--------|--------------------------------------------|
|                                                         |                                     |   |                                       |
|                                                         | June 28, 2009                            |   | December 28, 2008                          |
| Derivatives designated as hedging instruments under SFAS 133 | Balance Sheet Location                   |   | Fair Value                                 |   | Balance Sheet Location |   | Fair Value |
|                                                         |                                     |   |                                       |   |   |   |   |
| Interest rate contract                                       | Derivative instrument liability(1)  |   | $      6,431 |   | Derivative instrument liability(2)  |   | $      6,927 |

|   |  (1) As of June 28, 2009, the estimated fair value was comprised of a $4.2 million current liability and a $2.2 million noncurrent liability. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) As of December 28, 2008, the estimated fair value was comprised of a $3.8 million current liability and a $3.1 million noncurrent liability. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|                    |   | Amount of Gain or (Loss)   |   |                  |     | Amount of Gain or (Loss)      |               |
|-------------------------|--------|----------------------------|--------|-----------------------|----------|-------------------------------|--------------------|
|                    |   | Recognized in              |   |                  |     | Reclassified From Accumulated |               |
|                    |   | Other Comprehensive Income |   | Location of Gain      |     | Other Comprehensive Income    |               |
|                    |   | on Derivative              |   | or (Loss)             |     | Into Income                   |               |
|                    |   | - Effective Portion -      |   | Reclassified From     |     | - Effective Portion -         |               |
|                    |   | Three Months Ended         |   | Accumulated Other     |     | Three Months Ended            |               |
| Derivatives in SFAS 133 |   | June 28,                   |   |                  | June 29, |                          | Comprehensive      |   | June 28, |   |   | June 29, |   |
| cash flow hedging       |   | 2009                       |   |                  | 2008     |                          | Income Into Income |   | 2009 |   |   | 2008 |   |
| relationships           |   | (in thousands)             |   | - Effective Portion - |     | (in thousands)                |               |
|                    |   |                       |   |                  |     |                          |               |   |   |   |   |   |   |
| Interest rate contract  |   | $                          | (477   | )                     |     | $                             | 657                |   | Interest expense, net |   | $ | (982 | ) |   | $ | (139 | ) |
|                    |   |                       |   |                  |     |                          |               |
|                    |   | Six Months Ended           |   |                  |     | Six Months Ended              |               |
| Derivatives in SFAS 133 |   | June 28,                   |   |                  | June 29, |                          |               |   | June 28, |   |   | June 29, |   |
| cash flow hedging       |   |                       | 2009   |                  |     |                          | 2008               |   |   |   |   | 2009 |   |   |   | 2008 |   |
| relationships           |   | (in thousands)             |   |                  |     | (in thousands)                |               |
|                    |   |                       |   |                  |     |                          |               |   |   |   |   |   |   |   |   |   |   |
| Interest rate contract  |   | $                          | (1,158 | )                     |     | $                             | 657                |   | Interest expense, net |   | $ | (1,655 | ) |   | $ | (139 | ) |

----

----

|                                                                              |   | Three Months Ended                       |   |   | Six Months Ended |   |
|-----------------------------------------------------------------------------------|--------|------------------------------------------|--------|--------|------------------|--------|
|                                                                              |   | June 28,                                 |   |   | June 29,         |   |   | June 28, |   |   | June 29, |   |
|                                                                              |   | 2009                                     |   |   | 2008             |   |   | 2009 |   |   | 2008 |   |
|                                                                              |   | (in thousands, except per share amounts) |   |
| Numerator:                                                                        |   |                                     |   |   |             |   |   |   |   |   |   |   |
| Net income                                                                        |   | $                                        | 8,994  |   |             | $      | 11,308 |   |   | $ | 43,047 |   |   | $ | 44,219 |   |
|                                                                              |   |                                     |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                      |   |                                     |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic weighted average shares outstanding                                         |   |                                     | 23,048 |   |             |   | 23,710 |   |   |   | 22,933 |   |   |   | 24,971 |   |
|     Potential common shares for stock options and restricted stock |   |                                     | 166    |   |             |   | 400 |   |   |   | 171 |   |   |   | 306 |   |
|                                                                              |   |                                     |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Diluted weighted average shares outstanding                                       |   |                                     | 23,214 |   |             |   | 24,110 |   |   |   | 23,104 |   |   |   | 25,277 |   |
|                                                                              |   |                                     |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share:                                                               |   |                                     |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                             |   | $                                        | 0.39   |   |             | $      | 0.48 |   |   | $ | 1.88 |   |   | $ | 1.77 |   |
| Diluted                                                                           |   | $                                        | 0.39   |   |             | $      | 0.47 |   |   | $ | 1.86 |   |   | $ | 1.75 |   |

----

|                                                         |   | Three Months Ended |   |   | Six Months Ended |   |
|--------------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                                         |   | June 28,           |   |   | June 29,         |   |   | June 28, |   |   | June 29, |   |
|                                                         |   | 2009               |   |   | 2008             |   |   | 2009 |   |   | 2008 |   |
|                                                         |   | (in thousands)     |   |
|                                                         |   |               |   |   |             |   |   |   |   |   |   |   |
| Total stock-based compensation cost                          |   | $                  | 1,864  |   |             | $      | 1,577 |   |   | $ | 4,286 |   |   | $ | 2,695 |   |
| Portion capitalized as property and equipment                |   |               | (54    | )      |             |   | (50 | ) |   |   | (103 | ) |   |   | (93 | ) |
|                                                         |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Pre-tax stock-based compensation expense recognized(1)  |   | $                  | 1,810  |   |             | $      | 1,527 |   |   | $ | 4,183 |   |   | $ | 2,602 |   |

|   |  (1) Included in “General and administrative expense” in the unaudited Condensed Consolidated Statements of Earnings. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

 
ITEM 2

| ·   | Executive Overview |
|--------------------|--------------------|

| ·   | Overview of Operations |
|--------------------|------------------------|

| ·   | Results of Operations |
|--------------------|-----------------------|

| ·   | Financial Condition, Liquidity and Capital Resources |
|--------------------|------------------------------------------------------|

| ·   | Off-Balance Sheet Arrangements and Contractual Obligations |
|--------------------|------------------------------------------------------------|

| ·   | Critical Accounting Policies and Estimates |
|--------------------|--------------------------------------------|

| ·   | Recent Accounting Pronouncements |
|--------------------|----------------------------------|

| ·   | Revenues decreased 4.0% during the second quarter of 2009 compared to the same period in 2008. |
|--------------------|------------------------------------------------------------------------------------------------|

| -   | Comparable store sales decreased 5.4%. |
|---------------|----------------------------------------|

| -   | Weighted average Company-owned store count increased by approximately five stores. |
|---------------|------------------------------------------------------------------------------------|

| -   | Menu prices increased on average 1.5%. |
|---------------|----------------------------------------|

| ·   | Company store operating costs as a percentage of Company store sales increased 2.9 percentage points during the second quarter of 2009 compared to the same period in 2008. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Other store operating expenses increased due to the deleveraging effects associated with the decline in comparable store sales, an increase in repair and maintenance costs and a 0.4 percentage point impact from a $0.9 million gain recognized upon the sale of a restaurant property in the second quarter of 2008. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Depreciation, amortization and rent expenses increased a combined 1.4 percentage points as a percentage of Company store sales, primarily due to ongoing capital initiatives and the effect of lower sales on our fixed costs. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | These increases were partially offset by a decrease in the average price per pound of cheese of approximately 41%. |
|---------------|--------------------------------------------------------------------------------------------------------------------|

| ·   | General and administrative expenses decreased to $11.7 million during the second quarter of 2009 compared to $14.0 million in the second quarter of 2008 primarily due to lower performance-based compensation costs and a reduction in legal costs attributable to the non-recurrence of prior year legal matters. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Interest expense decreased to $3.1 million during the second quarter of 2009 compared to $4.1 million in the second quarter of 2008 primarily due to a 90 basis point decrease in the average effective interest rates incurred on the outstanding balance of our revolving credit facility during the second quarter of 2009 compared to the second quarter of 2008,as well as a decrease in the average debt balance outstanding between the two quarters. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net income for the second quarter of 2009 decreased 20.5% to $9.0 million from $11.3 million in the same period in 2008 and diluted earnings per share decreased 17.0% to $0.39 compared to $0.47 in the same period in 2008. Earnings per share benefited from our repurchase of 645,000 shares of our common stock during the second quarter of 2009. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                            |   | Three Months Ended |   |   | Six Months Ended |   |
|---------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                            |   | June 28,           |   |   | June 29,         |   |   | June 28, |   |   | June 29, |   |
|                            |   | 2009               |   |   | 2008             |   |   | 2009 |   |   | 2008 |   |
|                            |   |               |   |   |             |   |   |   |   |   |   |   |
| Number of Company-owned stores: |   |               |   |   |             |   |   |   |   |   |   |   |
| Beginning of period             |   |               | 495    |   |             |   | 490 |   |   |   | 495 |   |   |   | 490 |   |
| New                             |   |               | 1      |   |             |   | 1 |   |   |   | 1 |   |   |   | 1 |   |
| Acquired from franchisees       |   |               | -      |   |             |   | - |   |   |   | - |   |   |   | - |   |
| Closed                          |   |               | -      |   |             |   | (1 | ) |   |   | - |   |   |   | (1 | ) |
| End of period                   |   |               | 496    |   |             |   | 490 |   |   |   | 496 |   |   |   | 490 |   |
|                            |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Number of franchised stores:    |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Beginning of period             |   |               | 47     |   |             |   | 44 |   |   |   | 46 |   |   |   | 44 |   |
| New                             |   |               | 1      |   |             |   | 3 |   |   |   | 2 |   |   |   | 3 |   |
| Acquired by the Company         |   |               | -      |   |             |   | - |   |   |   | - |   |   |   | - |   |
| Closed                          |   |               | -      |   |             |   | - |   |   |   | - |   |   |   | - |   |
| End of period                   |   |               | 48     |   |             |   | 47 |   |   |   | 48 |   |   |   | 47 |   |

| ·   | Cost of food and beverage includes all direct costs of food, beverages and costs of related paper and birthday supplies, less rebates from suppliers; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Cost of entertainment and merchandise includes all direct costs of prizes provided and merchandise sold to our customers, as well as the cost of tickets dispensed to customers and redeemed for prize items; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | Labor expenses consist of salaries and wages, related payroll taxes and benefits for store personnel; |
|--------------|-------------------------------------------------------------------------------------------------------|

| ·   | Depreciation and amortization expense pertain directly to our store assets; |
|--------------------|-----------------------------------------------------------------------------|

| ·  | Rent expense includes lease costs for Company stores, excluding common occupancy costs (e.g. common area maintenance (“CAM”) charges, property taxes, etc.); and |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Other store operating expenses which include utilities, repair costs, liability and property insurance, CAM charges, property taxes, preopening expenses, store asset disposal gains and losses, and all other costs directly related to the operation of a store. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                |   | Three Months Ended                 |    |   | Six Months Ended |   |
|-------------------------------------|--------|------------------------------------|---------|--------|------------------|--------|
|                                |   | June 28, 2009                      |    |   | June 29, 2008    |   |   | June 28, 2009 |   |   | June 29, 2008 |   |
|                                |   | (in thousands, except percentages) |    |
|                                |   |                               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food and beverage sales             |   | $                                  | 91,123  |   |             |   | 49.3 | % |   | $ | 96,783 |   |   |   | 50.3 | % |   | $ | 219,602 |   |   |   | 50.7 | % |   | $ | 220,988 |   |   |   | 50.5 | % |
| Entertainment and merchandise sales |   |                               | 92,676  |   |             |   | 50.2 | % |   |   | 94,571 |   |   |   | 49.1 | % |   |   | 211,257 |   |   |   | 48.8 | % |   |   | 214,585 |   |   |   | 49.0 | % |
|                                |   |                               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Company store sales                 |   |                               | 183,799 |   |             |   | 99.5 | % |   |   | 191,354 |   |   |   | 99.4 | % |   |   | 430,859 |   |   |   | 99.5 | % |   |   | 435,573 |   |   |   | 99.5 | % |
| Franchising activities              |   |                               | 996     |   |             |   | 0.5 | % |   |   | 1,140 |   |   |   | 0.6 | % |   |   | 2,069 |   |   |   | 0.5 | % |   |   | 2,097 |   |   |   | 0.5 | % |
|                                |   |                               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenues                      |   | $                                  | 184,795 |   |             |   | 100.0 | % |   | $ | 192,494 |   |   |   | 100.0 | % |   | $ | 432,928 |   |   |   | 100.0 | % |   | $ | 437,670 |   |   |   | 100.0 | % |

|                                                                                          |   | Three Months Ended                 |                |   | Six Months Ended |   |
|-----------------------------------------------------------------------------------------------|--------|------------------------------------|---------------------|--------|------------------|--------|
|                                                                                          |   | June 28, 2009                      |                |   | June 29, 2008    |   |   | June 28, 2009 |   |   | June 29, 2008 |   |
|                                                                                          |   | (in thousands, except percentages) |                |
|                                                                                          |   |                               |                |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of food and beverage (as a percentage of food and beverage sales)                   |   | $                                  |  20,612        |   |             |   | 22.6 | % |   | $ |  22,892 |   |   |   | 23.7 | % |   | $ |  47,758 |   |   |   | 21.7 | % |   | $ |  51,157 |   |   |   | 23.1 | % |
| Cost of entertainment and merchandise (as a percentage ofentertainment and merchandise sales) |   |                               |     8,360 |   |             |   | 9.0 | % |   |   |     8,210 |   |   |   | 8.7 | % |   |   |     19,124 |   |   |   | 9.1 | % |   |   |     18,042 |   |   |   | 8.4 | % |
|                                                                                          |   |                               |                |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |                               | 28,972              |   |             |   | 15.8 | % |   |   | 31,102 |   |   |   | 16.3 | % |   |   | 66,882 |   |   |   | 15.5 | % |   |   | 69,199 |   |   |   | 15.9 | % |
| Labor expenses                                                                                |   |                               | 52,449              |   |             |   | 28.5 | % |   |   | 54,436 |   |   |   | 28.4 | % |   |   | 112,945 |   |   |   | 26.2 | % |   |   | 116,672 |   |   |   | 26.8 | % |
| Depreciation and amortization                                                                 |   |                               | 19,040              |   |             |   | 10.4 | % |   |   | 18,241 |   |   |   | 9.5 | % |   |   | 37,954 |   |   |   | 8.8 | % |   |   | 36,705 |   |   |   | 8.4 | % |
| Rent expense                                                                                  |   |                               | 16,719              |   |             |   | 9.1 | % |   |   | 16,357 |   |   |   | 8.5 | % |   |   | 33,633 |   |   |   | 7.8 | % |   |   | 32,853 |   |   |   | 7.5 | % |
| Other store operating expenses                                                                |   |                               | 30,285              |   |             |   | 16.5 | % |   |   | 27,811 |   |   |   | 14.5 | % |   |   | 60,409 |   |   |   | 14.0 | % |   |   | 58,449 |   |   |   | 13.4 | % |
| Total Company store operating costs                                                           |   |                               | 147,465             |   |             |   | 80.2 | % |   |   | 147,947 |   |   |   | 77.3 | % |   |   | 311,823 |   |   |   | 72.4 | % |   |   | 313,878 |   |   |   | 72.1 | % |
| Other costs and expenses (as a percentage of total revenues):                                 |   |                               |                |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Advertising expense                                                                           |   |                               | 8,637               |   |             |   | 4.7 | % |   |   | 7,902 |   |   |   | 4.1 | % |   |   | 18,681 |   |   |   | 4.3 | % |   |   | 18,021 |   |   |   | 4.1 | % |
| General and administrative expenses                                                           |   |                               | 11,738              |   |             |   | 6.4 | % |   |   | 13,967 |   |   |   | 7.3 | % |   |   | 26,255 |   |   |   | 6.1 | % |   |   | 27,255 |   |   |   | 6.2 | % |
| Asset impairments                                                                             |   |                               | -                   |   |             |   | 0.0 | % |   |   | 137 |   |   |   | 0.1 | % |   |   | - |   |   |   | 0.0 | % |   |   | 137 |   |   |   | 0.0 | % |
| Total operating costs and expenses                                                            |   |                               | 167,840             |   |             |   | 90.8 | % |   |   | 169,953 |   |   |   | 88.3 | % |   |   | 356,759 |   |   |   | 82.4 | % |   |   | 359,291 |   |   |   | 82.1 | % |
|                                                                                          |   |                               |                |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (as a percentage of total revenues)                                     |   |                               | 16,955              |   |             |   | 9.2 | % |   |   | 22,541 |   |   |   | 11.7 | % |   |   | 76,169 |   |   |   | 17.6 | % |   |   | 78,379 |   |   |   | 17.9 | % |
| Interest expense, net (as a percentage of total revenues)                                |   |                               | 3,095               |   |             |   | 1.7 | % |   |   | 4,063 |   |   |   | 2.1 | % |   |   | 6,169 |   |   |   | 1.4 | % |   |   | 7,896 |   |   |   | 1.8 | % |
|                                                                                          |   |                               |                |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes (as a percentage of total revenues)                           |   | $                                  | 13,860              |   |             |   | 7.5 | % |   | $ | 18,478 |   |   |   | 9.6 | % |   | $ | 70,000 |   |   |   | 16.2 | % |   | $ | 70,483 |   |   |   | 16.1 | % |

----

----

----

----

|                                            |   | Six Months Ended |    |
|-------------------------------------------------|--------|------------------|---------|
|                                            |   | June 28,         |    |   | June 29, |   |
|                                            |   | 2009             |    |   | 2008 |   |
|                                            |   | (in thousands)   |    |
|                                            |   |             |    |   |   |   |
| Net cash provided by operating activities       |   | $                | 91,628  |   |   | $ | 103,682 |   |
| Net cash used for investing activities          |   |             | (33,126 | ) |   |   | (37,328 | ) |
| Net cash used for financing activities          |   |             | (59,484 | ) |   |   | (67,556 | ) |
| Effect of foreign exchange rate changes on cash |   |             | (270    | ) |   |   | - |   |
|                                            |   |             |    |   |   |   |   |   |
| Change in cash and cash equivalents             |   | $                | (1,252  | ) |   | $ | (1,202 | ) |
|                                            |   |             |    |   |   |   |   |   |
| Interest paid                                   |   | $                | 6,537   |   |   | $ | 7,009 |   |
| Income taxes paid, net                          |   | $                | 16,954  |   |   | $ | 19,185 |   |

|                                                         |   | June 28,       |    |   | December 28, |   |
|--------------------------------------------------------------|--------|----------------|---------|--------|--------------|--------|
|                                                         |   | 2009           |    |   | 2008         |   |
|                                                         |   | (in thousands) |    |
|                                                         |   |           |    |   |         |   |
| Cash and cash equivalents                                    |   | $              | 16,517  |   |         | $      | 17,769 |   |
| Revolving credit facility borrowings                         |   | $              | 347,600 |   |         | $      | 401,850 |   |
| Available unused commitments under revolving credit facility |   | $              | 192,443 |   |         | $      | 138,706 |   |

----

----

| ·   |  a consolidated fixed charge coverage ratio of not less than 1.5 to 1.0, based upon  the  ratio  of (a) consolidated  EBITR (as defined in the revolving credit facility agreement) for the last four fiscal quarters to (b) the sum  of consolidated  interest  charges  plus consolidated rent expense during  such  period. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |  a  consolidated leverage ratio of not greater than 3.0 to 1.0, based upon  the  ratio  of (a) the quarter-end consolidated funded indebtedness (as defined in the revolving credit facility agreement) to (b) consolidated EBITDA (as defined in the revolving credit facility agreement) for the last four fiscal quarters. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|              |   | Six Months Ended |   |
|-------------------|--------|------------------|--------|
|              |   | June 28, 2009    |   |   | June 29, 2008 |   |
|              |   |             |   |   |   |   |
| Major remodels    |   |             | 4      |   |   |   | 7 |   |
| Store expansions  |   |             | 9      |   |   |   | 4 |   |
| Game enhancements |   |             | 55     |   |   |   | 49 |   |
| Total completed   |   |             | 68     |   |   |   | 60 |   |

----

| ·   | Changes in consumer discretionary spending and general economic conditions; |
|--------------------|-----------------------------------------------------------------------------|

| ·   | Disruptions in the financial markets affecting the availability and cost of credit and our ability to maintain adequate insurance coverage; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our ability to successfully implement our business development strategies; |
|--------------------|----------------------------------------------------------------------------|

| ·   | Costs incurred in connection with our business development strategies; |
|--------------------|------------------------------------------------------------------------|

| ·   | Competition in both the restaurant and entertainment industries; |
|--------------------|------------------------------------------------------------------|

| ·   | Loss of certain key personnel; |
|--------------------|--------------------------------|

| ·   | Increases in food, labor and other operating costs; |
|--------------------|-----------------------------------------------------|

| ·   | Changes in consumers’ health, nutrition and dietary preferences; |
|--------------------|------------------------------------------------------------------------|

| ·   | Negative publicity concerning food quality, health, safety and other issues; |
|--------------------|------------------------------------------------------------------------------|

| ·   | Public health issues such as the H1N1 influenza A virus, commonly referred to as the "swine flu;" |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | Disruption of our commodity distribution system; |
|--------------------|--------------------------------------------------|

| ·   | Our dependence on a few global providers for the procurement of games and rides; |
|--------------------|----------------------------------------------------------------------------------|

| ·   | Adverse affects of local conditions, events and natural disasters; |
|--------------------|--------------------------------------------------------------------|

| ·   | Fluctuations in our quarterly results of operations due to seasonality; |
|--------------------|-------------------------------------------------------------------------|

| ·   | Conditions in foreign markets; |
|--------------------|--------------------------------|

----

| ·   | Risks in connection with owning and leasing real estate; |
|--------------------|----------------------------------------------------------|

| ·   | Our ability to adequately protect our trademarks or other proprietary rights; |
|--------------------|-------------------------------------------------------------------------------|

| ·   | Government regulations, litigation, product liability claims and product recalls; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | Disruptions of our information technology systems; |
|--------------------|----------------------------------------------------|

| ·   | Changes in financial accounting standards or our interpretations of existing standards; and |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | Failure to establish, maintain and apply adequate internal control over financial reporting. |
|--------------------|----------------------------------------------------------------------------------------------|

ITEM 3.

ITEM 4.

----

----

Legal Proceedings

Risk Factors

----

Unregistered

| Issuer Purchases of Equity Securities |   |
|---------------------------------------|--------|
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Period                                |   | Total Numberof Shares Purchased(1) |   |   | AveragePrice PaidPer Share(1) |   |   | Total Number of Shares Purchased As Part of Publicly Announced Plans or Programs |   |   | Maximum Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs(2) |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Mar. 30 – Apr. 26, 2009         |   |   | 121 |   |   | $ | 28.42 |   |   |   | - |   |   | $ | 71,376,456 |   |
| Apr. 27 – May 24, 2009          |   |   | 645,120 |   |   | $ | 31.14 |   |   |   | 645,000 |   |   | $ | 51,293,101 |   |
| May 25 – Jun. 28, 2009          |   |   | 68 |   |   | $ | 32.52 |   |   |   | - |   |   | $ | 51,293,101 |   |
| Total                                 |   |   | 645,309 |   |   | $ | 31.14 |   |   |   | 645,000 |   |   | $ | 51,293,101 |   |

|   | (1)For the periods ended April 26, May 24 and June 28, 2009, the total number of shares purchased included 121 shares, 120 shares and 68 shares, respectively, tendered by employees at an average price per share of $28.42, $30.68 and $32.52, respectively, to satisfy tax withholding requirements on the vestingof restricted stock awards, which are not deducted from shares available to be purchased under our share repurchase program. Unless otherwise indicated, shares tendered by employees to satisfy tax withholding requirements were considered purchased at the closing price of our common stock on the date of vesting. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)We may repurchase shares of our common stock under a plan authorized by our Board of Directors (the “Board”).  On July 25, 2005, the Board approved a stock repurchase program which authorized us to repurchase from time to time up to $400 million of our common stock.  On October22, 2007, the Board authorized a $200 million increase to the share repurchase authorization bringing the total authorization to $600 million.  The share repurchase program, which does not have a stated expiration date, authorizes us to make repurchases in the open market or in private transactions. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Submission

|             |   | For    |       |   | Withheld |   |
|------------------|--------|--------|------------|--------|----------|--------|
|             |   |   |       |   |     |   |
| Richard M. Frank |   |   | 20,095,430 |   |     |   | 565,612 |   |
| Tim T. Morris    |   |   | 19,756,433 |   |     |   | 904,609 |   |
| Louis P. Neeb    |   |   | 18,787,048 |   |     |   | 1,873,994 |   |

| For    |       |   | Against |   |      | Abstain |   |
|--------|------------|--------|---------|--------|-----------|---------|--------|
|   |       |   |    |   |      |    |   |
|   | 17,754,324 |   |    |   | 1,949,960 |    |   |   | 3,793 |   |

| For    |       |   | Against |   |   | Abstain |   |
|--------|------------|--------|---------|--------|--------|---------|--------|
|   |       |   |    |   |   |    |   |
|   | 20,630,600 |   |    |   | 21,806 |    |   |   | 8,635 |   |

----

Exhibits

| Exhibit Number |   | Description                                                                                                                                                                                                                                                                                                                                |
|----------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 3.1            |   | Restated Articles of Incorporation of CEC Entertainment, Inc. (the “Company”) dated October 14, 2008 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-13687) as filed with the Securities and Exchange Commission (the “Commission”) on October 14, 2008) |
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 3.2            |   | Amended and Restated Bylaws of the Company dated December 10, 2008 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-13687) as filed with the Commission on December 10, 2008)                                                                                                     |
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 10.1*§    |   | CEC Entertainment, Inc. Second Amended and Restated 2004 Restricted Stock Plan effective as of May 8, 2009                                                                                                                                                                                                                                 |
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 10.2*§    |   | Form of Restricted Stock Agreement under the Company’s Second Amended and Restated 2004 Restricted Stock Plan                                                                                                                                                                                                                   |
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 10.3*§    |   | CEC Entertainment, Inc. Amended and Restated Non-Employee Directors Restricted Stock Plan effective as of May 8, 2009                                                                                                                                                                                                                      |
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 10.4*§    |   | Form of Restricted Stock Agreement under the Company’s Amended and Restated Non-Employee Directors Restricted Stock Plan                                                                                                                                                                                                             |
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 31.1*          |   | Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                 |
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 31.2*          |   | Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                 |
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 32.1*          |   | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                          |
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 32.2*          |   | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                          |

----

SIGNATURES

|   |   | July 30, 2009 | By:    | /s/ Michael H. Magusiak                                             |
|--------|--------|---------------|--------|---------------------------------------------------------------------|
|   |   |          |   | Michael H. Magusiak                                                 |
|   |   |          |   | President and Chief Executive Officer (Principal Executive Officer) |
|   |   |          |   |                                                                |
|   |   | July 30, 2009 |   | /s/ Christopher D. Morris                                           |
|   |   |          |   | Christopher D. Morris                                               |
|   |   |          |   | Executive Vice President, Chief Financial Officer and Treasurer     |
|   |   |          |   | (Principal Financial Officer)                                       |
|   |   |          |   |                                                                |
|   |   | July 30, 2009 |   | /s/ Darin E. Harper                                                 |
|   |   |          |   | Darin E. Harper                                                     |
|   |   |          |   | Vice President, Controller                                          |
|   |   |          |   | (Principal Accounting Officer)                                      |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |
|   |   |          |   |                                                                |

----

EXHIBIT INDEX

| Exhibit Number |   | Description                                                                                                                                                                                                                                                                                                                                |
|----------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 3.1            |   | Restated Articles of Incorporation of CEC Entertainment, Inc. (the “Company”) dated October 14, 2008 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-13687) as filed with the Securities and Exchange Commission (the “Commission”) on October 14, 2008) |
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 3.2            |   | Amended and Restated Bylaws of the Company dated December 10, 2008 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-13687) as filed with the Commission on December 10, 2008)                                                                                                     |
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 10.1*§    |   | CEC Entertainment, Inc. Second Amended and Restated 2004 Restricted Stock Plan effective as of May 8, 2009                                                                                                                                                                                                                                 |
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 10.2*§    |   | Form of Restricted Stock Agreement under the Company’s Second Amended and Restated 2004 Restricted Stock Plan                                                                                                                                                                                                                        |
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 10.3*§    |   | CEC Entertainment, Inc. Amended and Restated Non-Employee Directors Restricted Stock Plan effective as of May 8, 2009                                                                                                                                                                                                                      |
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 10.4*§    |   | Form of Restricted Stock Agreement under the Company’s Amended and Restated Non-Employee Directors Restricted Stock Plan                                                                                                                                                                                                             |
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 31.1*          |   | Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                 |
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 31.2*          |   | Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                 |
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 32.1*          |   | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                          |
|           |   |                                                                                                                                                                                                                                                                                                                                       |
| 32.2*          |   | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                          |

----