----

----

| 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 September      27, 2009 and December 28, 2008                                                |   | 3          |
|         |   |                                                                                                                                  |   |       |
|         |   | Condensed Consolidated Statements of Earnings      for the three and nine months ended September 27, 2009 and September 28,      2008 |   |  4    |
|         |   |                                                                                                                                  |   |       |
|         |   | Condensed Consolidated Statement of Changes in      Stockholders’ Equity for the nine months ended September 27,      2009      |   |  5    |
|         |   |                                                                                                                                  |   |       |
|         |   | Condensed      Consolidated Statements of Cash Flows for the nine months ended      September      27, 2009 and September 28, 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 5.      |   | Other Information                                                                                                                     |   | 30         |
|         |   |                                                                                                                                  |   |       |
| ITEM 6.      |   | Exhibits                                                                                                                              |   | 31         |
|         |   |                                                                                                                                  |   |       |
| SIGNATURES   |   | 32                                                                                                                                    |
|         |   |                                                                                                                                  |   |       |
|         |   |                                                                                                                                  |   |       |
|         |   |                                                                                                                                  |   |       |
|         |   |                                                                                                                                  |   |       |
|         |   |                                                                                                                                  |   |       |
|         |   |                                                                                                                                  |   |       |
|         |   |                                                                                                                                  |   |       |
|         |   |                                                                                                                                  |   |       |

----

PART I - FINANCIAL INFORMAT

|                                                                                                                          |   | September      27, |     |   | December      28, |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------|--------|-------------------|--------|
|                                                                                                                          |   | 2009               |     |   | 2008              |   |
| ASSETS                                                                                                                        |   |               |     |   |              |   |
|                                                                                                                          |   |               |     |   |              |   |
| Current      assets:                                                                                                          |   |               |     |   |              |   |
| Cash      and cash equivalents                                                                                                |   | $                  | 16,039   |   |              | $      | 17,769 |   |
| Accounts      receivable                                                                                                      |   |               | 19,069   |   |              |   | 31,734 |   |
| Inventories                                                                                                                   |   |               | 16,322   |   |              |   | 14,184 |   |
| Prepaid      expenses                                                                                                         |   |               | 14,650   |   |              |   | 11,192 |   |
| Deferred      tax asset                                                                                                       |   |               | 3,877    |   |              |   | 3,878 |   |
|                                                                                                                          |   |               |     |   |              |   |   |   |
| Total      current assets                                                                                                     |   |               | 69,957   |   |              |   | 78,757 |   |
|                                                                                                                          |   |               |     |   |              |   |   |   |
| Property      and equipment, net                                                                                              |   |               | 661,232  |   |              |   | 666,443 |   |
| Other      noncurrent assets                                                                                                  |   |               | 1,912    |   |              |   | 2,240 |   |
|                                                                                                                          |   |               |     |   |              |   |   |   |
| Total      assets                                                                                                             |   | $                  | 733,101  |   |              | $      | 747,440 |   |
|                                                                                                                          |   |               |     |   |              |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                               |   |               |     |   |              |   |   |   |
|                                                                                                                          |   |               |     |   |              |   |   |   |
| Current      liabilities:                                                                                                     |   |               |     |   |              |   |   |   |
| Current      portion of long-term debt                                                                                        |   | $                  | 863      |   |              | $      | 806 |   |
| Accounts      payable                                                                                                         |   |               | 31,675   |   |              |   | 37,116 |   |
| Accrued      expenses                                                                                                         |   |               | 31,106   |   |              |   | 33,716 |   |
| Unearned      revenues                                                                                                        |   |               | 6,546    |   |              |   | 7,575 |   |
| Accrued      interest                                                                                                         |   |               | 1,435    |   |              |   | 3,457 |   |
| Derivative      instrument liability                                                                                          |   |               | 4,547    |   |              |   | 3,830 |   |
|                                                                                                                          |   |               |     |   |              |   |   |   |
| Total      current liabilities                                                                                                |   |               | 76,172   |   |              |   | 86,500 |   |
|                                                                                                                          |   |               |     |   |              |   |   |   |
| Long-term      debt, less current portion                                                                                     |   |               | 350,432  |   |              |   | 413,252 |   |
| Deferred      rent                                                                                                            |   |               | 76,712   |   |              |   | 76,617 |   |
| Deferred      tax liability                                                                                                   |   |               | 31,157   |   |              |   | 23,396 |   |
| Accrued      insurance                                                                                                        |   |               | 12,068   |   |              |   | 11,190 |   |
| Derivative      instrument liability                                                                                          |   |               | 1,840    |   |              |   | 3,097 |   |
| Other      noncurrent liabilities                                                                                             |   |               | 7,298    |   |              |   | 4,802 |   |
|                                                                                                                          |   |               |     |   |              |   |   |   |
| Total      liabilities                                                                                                        |   |               | 555,679  |   |              |   | 618,854 |   |
|                                                                                                                          |   |               |     |   |              |   |   |   |
| Commitments      and contingencies (Note 5)                                                                                   |   |               |     |   |              |   |   |   |
|                                                                                                                          |   |               |     |   |              |   |   |   |
| Stockholders’      equity:                                                                                              |   |               |     |   |              |   |   |   |
| Common      stock, $0.10 par value; authorized 100,000,000 shares; 61,047,842 and      59,860,722 shares issued, respectively |   |               | 6,105    |   |              |   | 5,986 |   |
| Capital      in excess of par                                                                                                 |   |               | 422,388  |   |              |   | 398,124 |   |
| Retained      earnings                                                                                                        |   |               | 696,977  |   |              |   | 641,220 |   |
| Accumulated      other comprehensive loss                                                                                     |   |               | 375      |   |              |   | (1,892 | ) |
| Less      treasury stock, at cost; 38,308,665 and 37,169,265 shares,      respectively                                        |   |               | (948,423 | )      |              |   | (914,852 | ) |
|                                                                                                                          |   |               |     |   |              |   |   |   |
| Total      stockholders’ equity                                                                                         |   |               | 177,422  |   |              |   | 128,586 |   |
|                                                                                                                          |   |               |     |   |              |   |   |   |
| Total      liabilities and stockholders’ equity                                                                         |   | $                  | 733,101  |   |              | $      | 747,440 |   |

----

CEC ENTERTAINMENT, INC.

|                                                                                                                                 |   | Three      Months Ended |    |   | Nine      Months Ended |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|------------------------|--------|
|                                                                                                                                 |   | September      27,      |    |   | September      28,     |   |   | September      27, |   |   | September      28, |   |
|                                                                                                                                 |   | 2009                    |    |   | 2008                   |   |   | 2009 |   |   | 2008 |   |
| REVENUES                                                                                                                             |   |                    |    |   |                   |   |   |   |   |   |   |   |
| Food      and beverage sales                                                                                                         |   | $                       | 95,060  |   |                   | $      | 100,309 |   |   | $ | 314,662 |   |   | $ | 321,297 |   |
| Entertainment      and merchandise sales                                                                                             |   |                    | 101,860 |   |                   |   | 100,569 |   |   |   | 313,117 |   |   |   | 315,154 |   |
|                                                                                                                                 |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Company      store sales                                                                                                             |   |                    | 196,920 |   |                   |   | 200,878 |   |   |   | 627,779 |   |   |   | 636,451 |   |
| Franchise      fees and royalties                                                                                                    |   |                    | 898     |   |                   |   | 1,000 |   |   |   | 2,967 |   |   |   | 3,097 |   |
|                                                                                                                                 |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Total      revenues                                                                                                                  |   |                    | 197,818 |   |                   |   | 201,878 |   |   |   | 630,746 |   |   |   | 639,548 |   |
|                                                                                                                                 |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      COSTS AND EXPENSES                                                                                                    |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Company      store operating costs:                                                                                                  |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of food and beverage (exclusive of labor expenses, depreciation and      amortization shown separately below)              |   |                    | 21,868  |   |                   |   | 24,829 |   |   |   | 69,626 |   |   |   | 75,986 |   |
| Cost      of entertainment and merchandise (exclusive of labor expenses,      depreciation, and amortization shown separately below) |   |                    | 8,947   |   |                   |   | 8,426 |   |   |   | 28,071 |   |   |   | 26,468 |   |
|                                                                                                                                 |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                 |   |                    | 30,815  |   |                   |   | 33,255 |   |   |   | 97,697 |   |   |   | 102,454 |   |
| Labor      expenses                                                                                                                  |   |                    | 54,593  |   |                   |   | 54,851 |   |   |   | 167,538 |   |   |   | 171,523 |   |
| Depreciation      and amortization                                                                                                   |   |                    | 19,232  |   |                   |   | 18,638 |   |   |   | 57,186 |   |   |   | 55,343 |   |
| Rent      expense                                                                                                                    |   |                    | 17,010  |   |                   |   | 16,741 |   |   |   | 50,643 |   |   |   | 49,594 |   |
| Other      store operating expenses                                                                                                  |   |                    | 32,226  |   |                   |   | 32,904 |   |   |   | 92,635 |   |   |   | 91,353 |   |
|                                                                                                                                 |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Company store operating costs                                                                                             |   |                    | 153,876 |   |                   |   | 156,389 |   |   |   | 465,699 |   |   |   | 470,267 |   |
| Advertising      expense                                                                                                             |   |                    | 9,179   |   |                   |   | 8,660 |   |   |   | 27,860 |   |   |   | 26,681 |   |
| General      and administrative expenses                                                                                             |   |                    | 11,328  |   |                   |   | 16,083 |   |   |   | 37,583 |   |   |   | 43,338 |   |
| Asset      impairments                                                                                                               |   |                    | -       |   |                   |   | - |   |   |   | - |   |   |   | 137 |   |
|                                                                                                                                 |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Total      operating costs and expenses                                                                                              |   |                    | 174,383 |   |                   |   | 181,132 |   |   |   | 531,142 |   |   |   | 540,423 |   |
|                                                                                                                                 |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income                                                                                                                |   |                    | 23,435  |   |                   |   | 20,746 |   |   |   | 99,604 |   |   |   | 99,125 |   |
|                                                                                                                                 |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense, net                                                                                                           |   |                    | 2,769   |   |                   |   | 5,052 |   |   |   | 8,938 |   |   |   | 12,948 |   |
|                                                                                                                                 |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Income      before income taxes                                                                                                      |   |                    | 20,666  |   |                   |   | 15,694 |   |   |   | 90,666 |   |   |   | 86,177 |   |
|                                                                                                                                 |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Income      taxes                                                                                                                    |   |                    | 7,955   |   |                   |   | 5,793 |   |   |   | 34,909 |   |   |   | 32,057 |   |
|                                                                                                                                 |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                                                                                      |   | $                       | 12,711  |   |                   | $      | 9,901 |   |   | $ | 55,757 |   |   | $ | 54,120 |   |
|                                                                                                                                 |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      per share:                                                                                                             |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                |   | $                       | 0.55    |   |                   | $      | 0.44 |   |   | $ | 2.43 |   |   | $ | 2.24 |   |
| Diluted                                                                                                                              |   | $                       | 0.55    |   |                   | $      | 0.43 |   |   | $ | 2.42 |   |   | $ | 2.21 |   |
|                                                                                                                                 |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average shares outstanding:                                                                                            |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                |   |                    | 22,971  |   |                   |   | 22,662 |   |   |   | 22,949 |   |   |   | 24,202 |   |
| Diluted                                                                                                                              |   |                    | 23,021  |   |                   |   | 23,014 |   |   |   | 23,080 |   |   |   | 24,523 |   |

----

CEC ENTERTAINMENT, INC.

|                                                                           |   | 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                                                                |   |              | -          |   |                      |   | -      |     |   |   | -                                    |   |   |                | 55,757  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 55,757 |   |
| Change      in fair value of cash flow hedge, net ofincome      taxes of $864  |   |              | -          |   |                      |   | -      |     |   |   | -                                    |   |   |                | -       |   |   |   | (1,410 | ) |   |   | - |   |   |   | - |   |   |   | (1,410 | ) |
| Hedging      loss realized in earnings, net ofincome      taxes of $1,069      |   |              | -          |   |                      |   | -      |     |   |   | -                                    |   |   |                | -       |   |   |   | 1,745 |   |   |   | - |   |   |   | - |   |   |   | 1,745 |   |
| Foreign      currency translation adjustments, net ofincome      taxes of $381 |   |              | -          |   |                      |   | -      |     |   |   | -                                    |   |   |                | -       |   |   |   | 1,932 |   |   |   | - |   |   |   | - |   |   |   | 1,932 |   |
| Comprehensive      income                                                      |   |              |       |   |                      |   |   |     |   |   |                                 |   |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 58,024 |   |
|                                                                           |   |              |       |   |                      |   |   |     |   |   |                                 |   |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock-based      compensation costs                                            |   |              | -          |   |                      |   | -      |     |   |   | 6,132                                |   |   |                | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,132 |   |
| Stock      options exercised                                                   |   |              | 911,799    |   |                      |   | 91     |     |   |   | 18,191                               |   |   |                | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 18,282 |   |
| Restricted      stock issued, net of forfeitures                               |   |              | 309,254    |   |                      |   | 32     |     |   |   | (32                                  | )      |   |                | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Tax      benefit from stock options andrestricted      stock                   |   |              | -          |   |                      |   | -      |     |   |   | 756                                  |   |   |                | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 756 |   |
| Restricted      stock returned for taxes                                       |   |              | (57,726    | )      |                      |   | (6     | )        |   |   | (1,358                               | )      |   |                | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,364 | ) |
| Common      stock issued under 401(k) plan                                     |   |              | 23,793     |   |                      |   | 2      |     |   |   | 575                                  |   |   |                | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 577 |   |
| Purchases      of treasury stock                                               |   |              | -          |   |                      |   | -      |     |   |   | -                                    |   |   |                | -       |   |   |   | - |   |   |   | 1,139,400 |   |   |   | (33,571 | ) |   |   | (33,571 | ) |
|                                                                           |   |              |       |   |                      |   |   |     |   |   |                                 |   |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at September 27, 2009                                             |   |              | 61,047,842 |   |                      | $      | 6,105  |     |   | $      | 422,388                              |   |   | $                   | 696,977 |   |   | $      | 375 |   |   |   | 38,308,665 |   |   | $ | (948,423 | ) |   | $ | 177,422 |   |

----

CEC ENTERTAINMENT, INC.

|                                                                                        |   | Nine      Months Ended |    |
|---------------------------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                                        |   | September      27,     |    |   | September      28, |   |
|                                                                                        |   | 2009                   |    |   | 2008 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                  |   |                   |    |   |   |   |
| Net      income                                                                             |   | $                      | 55,757  |   |   | $ | 54,120 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |                   |    |   |   |   |   |   |
| Depreciation      and amortization                                                          |   |                   | 57,859  |   |   |   | 55,719 |   |
| Deferred      income taxes                                                                  |   |                   | 8,628   |   |   |   | (1,818 | ) |
| Stock-based      compensation expense                                                       |   |                   | 5,974   |   |   |   | 4,047 |   |
| Deferred      lease rentals                                                                 |   |                   | (164    | ) |   |   | 633 |   |
| Deferred      debt financing costs                                                          |   |                   | 211     |   |   |   | 211 |   |
| Loss      on asset disposals, net                                                           |   |                   | 2,128   |   |   |   | 1,441 |   |
| Other      adjustment                                                                       |   |                   | (8      | ) |   |   | - |   |
| Changes      in operating assets and liabilities:                                           |   |                   |    |   |   |   |   |   |
| Accounts      receivable                                                                    |   |                   | 12,862  |   |   |   | (340 | ) |
| Inventories                                                                                 |   |                   | (2,138  | ) |   |   | 209 |   |
| Prepaid      expenses                                                                       |   |                   | (3,455  | ) |   |   | 1,072 |   |
| Accounts      payable                                                                       |   |                   | (5,910  | ) |   |   | 1,510 |   |
| Accrued      expenses                                                                       |   |                   | 1,111   |   |   |   | 7,471 |   |
| Unearned      revenues                                                                      |   |                   | (1,029  | ) |   |   | (354 | ) |
| Accrued      interest                                                                       |   |                   | (2,022  | ) |   |   | (602 | ) |
| Income      taxes payable                                                                   |   |                   | (2,373  | ) |   |   | 2,074 |   |
|                                                                                        |   |                   |    |   |   |   |   |   |
| Net      cash provided by operating activities                                              |   |                   | 127,431 |   |   |   | 125,393 |   |
|                                                                                        |   |                   |    |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                  |   |                   |    |   |   |   |   |   |
| Purchases      of property and equipment                                                    |   |                   | (51,167 | ) |   |   | (63,008 | ) |
| Disposition      of property and equipment                                                  |   |                   | -       |   |   |   | 2,223 |   |
| Other      investing activities                                                             |   |                   | 119     |   |   |   | (374 | ) |
|                                                                                        |   |                   |    |   |   |   |   |   |
| Net      cash used in investing activities                                                  |   |                   | (51,048 | ) |   |   | (61,159 | ) |
|                                                                                        |   |                   |    |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                  |   |                   |    |   |   |   |   |   |
| Net      (payments on) proceeds from line of credit                                         |   |                   | (62,250 | ) |   |   | 76,100 |   |
| Payments      on capital lease obligations                                                  |   |                   | (602    | ) |   |   | (560 | ) |
| Exercise      of stock options                                                              |   |                   | 18,282  |   |   |   | 19,170 |   |
| Excess      tax benefit from exercise of stock options                                      |   |                   | 2,037   |   |   |   | 389 |   |
| Payment      of taxes for returned restricted shares                                        |   |                   | (1,364  | ) |   |   | (1,028 | ) |
| Treasury      stock acquired                                                                |   |                   | (33,571 | ) |   |   | (160,845 | ) |
| Other      financing activities                                                             |   |                   | -       |   |   |   | (194 | ) |
|                                                                                        |   |                   |    |   |   |   |   |   |
| Net      cash used in financing activities                                                  |   |                   | (77,468 | ) |   |   | (66,968 | ) |
|                                                                                        |   |                   |    |   |   |   |   |   |
| Effect      of foreign exchange rate changes on cash                                        |   |                   | (645    | ) |   |   | - |   |
|                                                                                        |   |                   |    |   |   |   |   |   |
| Change      in cash and cash equivalents                                                    |   |                   | (1,730  | ) |   |   | (2,734 | ) |
|                                                                                        |   |                   |    |   |   |   |   |   |
| Cash      and cash equivalents at beginning of period                                       |   |                   | 17,769  |   |   |   | 18,373 |   |
|                                                                                        |   |                   |    |   |   |   |   |   |
| Cash      and cash equivalents at end of period                                             |   | $                      | 16,039  |   |   | $ | 15,639 |   |
|                                                                                        |   |                   |    |   |   |   |   |   |
| SUPPLEMENTAL      CASH FLOW INFORMATION:                                                    |   |                   |    |   |   |   |   |   |
| Interest      paid                                                                          |   | $                      | 9,231   |   |   | $ | 12,650 |   |
| Income      taxes paid, net                                                                 |   | $                      | 18,845  |   |   | $ | 35,341 |   |
|                                                                                        |   |                   |    |   |   |   |   |   |
| NON-CASH      INVESTING AND FINANCING ACTIVITIES:                                           |   |                   |    |   |   |   |   |   |
| Accrued      construction costs                                                             |   | $                      | 6,455   |   |   | $ | 6,708 |   |
| Common      stock issued under 401(k) plan                                                  |   | $                      | 577     |   |   | $ | 544 |   |
|                                                                                        |   |                   |    |   |   |   |   |   |

----

CEC ENTERTAINMENT, INC.

|                               |   | September      27,  |   |   | December      28, |   |
|------------------------------------|--------|---------------------|--------|--------|-------------------|--------|
|                               |   | 2009                |   |   | 2008              |   |
|                               |   | (in      thousands) |   |
|                               |   |                |   |   |              |   |
| Food      and beverage             |   | $                   | 3,453  |   |              | $      | 4,400 |   |
| Entertainment      and merchandise |   |                | 12,869 |   |              |   | 9,784 |   |
|                               |   |                |   |   |              |   |   |   |
|                               |   | $                   | 16,322 |   |              | $      | 14,184 |   |

----

|                                        |   | September      27,  |    |   | December      28, |   |
|---------------------------------------------|--------|---------------------|---------|--------|-------------------|--------|
|                                        |   | 2009                |    |   | 2008              |   |
|                                        |   | (in      thousands) |    |
|                                        |   |                |    |   |              |   |
| Revolving      credit facility borrowings   |   | $                   | 339,600 |   |              | $      | 401,850 |   |
| Obligations      under capital leases       |   |                | 11,695  |   |              |   | 12,208 |   |
|                                        |   |                |    |   |              |   |   |   |
|                                        |   |                | 351,295 |   |              |   | 414,058 |   |
| Less      current portion of capital leases |   |                | (863    | )      |              |   | (806 | ) |
|                                        |   |                |    |   |              |   |   |   |
|                                        |   | $                   | 350,432 |   |              | $      | 413,252 |   |

----

|                                             |                                                   |   | September      27,  |   |   | December      28, |   |
|--------------------------------------------------|--------------------------------------------------------|--------|---------------------|--------|--------|-------------------|--------|
|                                             | Balance      Sheet Location                            |   | 2009                |   |   | 2008              |   |
| Derivative      designated as hedging instrument |                                                   |   | (in      thousands) |   |
|                                             |                                                   |   |                |   |   |              |   |
| Interest      rate swap contract                 | Derivative      instrument liability(1)      (2)  |   | $                   | 6,387  |   |              | $      | 6,927 |   |

|   |  (1)      As of September 27, 2009, the estimated fair value was comprised of a $4.5      million current liability and a $1.8 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. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   | Three      Months Ended |   |   |   |  Nine      Months Ended |   |
|--------|--------|--------|-------------------------|--------|--------|--------|------------------------------|--------|
|   |   |   | September      27,      |   |   |   | September      28,           |   |   |   | September      27, |   |   |   | September      28, |   |   |
|   |   |   | 2009                    |   |   |   | 2008                         |   |   |   | 2009 |   |   |   | 2008 |   |

| Derivative      in cash flow hedging relationship                                       |   | (in      thousands, excluding income tax effects) |
|-----------------------------------------------------------------------------------------|--------|---------------------------------------------------|
|                                                                                    |   |                                              |   |   |   |   |   |   |   |
| Loss      recognized in accumulated OCI – effective portion:                      |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      rate swap contract                                                        |   | $                                                 | (1,116 | ) |   | $ | (1,312 | ) |   | $ | (2,274 | ) |   | $ | (655 | ) |
|                                                                                    |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss      reclassified from accumulated OCI into income – effective      portion: |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense, net                                                              |   | $                                                 | (1,159 | ) |   | $ | (348 | ) |   | $ | (2,814 | ) |   | $ | (487 | ) |

----

----

|                                                                       |   | Three      Months Ended                       |   |   | Nine      Months Ended |   |
|----------------------------------------------------------------------------|--------|-----------------------------------------------|--------|--------|------------------------|--------|
|                                                                       |   | September      27,                            |   |   | September      28,     |   |   | September      27, |   |   | September      28, |   |
|                                                                       |   | 2009                                          |   |   | 2008                   |   |   | 2009 |   |   | 2008 |   |
|                                                                       |   | (in      thousands, except per share amounts) |   |
| Numerator:                                                                 |   |                                          |   |   |                   |   |   |   |   |   |   |   |
|        Net income                                                     |   | $                                             | 12,711 |   |                   | $      | 9,901 |   |   | $ | 55,757 |   |   | $ | 54,120 |   |
|                                                                       |   |                                          |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                               |   |                                          |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|        Basic weighted average shares outstanding                      |   |                                          | 22,971 |   |                   |   | 22,662 |   |   |   | 22,949 |   |   |   | 24,202 |   |
|   Potential common shares      for stock options and restricted stock |   |                                          | 50     |   |                   |   | 352 |   |   |   | 131 |   |   |   | 321 |   |
|                                                                       |   |                                          |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|        Diluted weighted average shares outstanding                    |   |                                          | 23,021 |   |                   |   | 23,014 |   |   |   | 23,080 |   |   |   | 24,523 |   |
|                                                                       |   |                                          |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      per share:                                                   |   |                                          |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|        Basic                                                          |   | $                                             | 0.55   |   |                   | $      | 0.44 |   |   | $ | 2.43 |   |   | $ | 2.24 |   |
|        Diluted                                                        |   | $                                             | 0.55   |   |                   | $      | 0.43 |   |   | $ | 2.42 |   |   | $ | 2.21 |   |

----

|                                                              |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|-------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
|                                                              |   | September      27,      |   |   | September      28,     |   |   | September      27, |   |   | September      28, |   |
|                                                              |   | 2009                    |   |   | 2008                   |   |   | 2009 |   |   | 2008 |   |
|                                                              |   | (in      thousands)     |   |
|                                                              |   |                    |   |   |                   |   |   |   |   |   |   |   |
| Total      stock-based compensation cost                          |   | $                       | 1,846  |   |                   | $      | 1,495 |   |   | $ | 6,132 |   |   | $ | 4,190 |   |
| Portion      capitalized as property and equipment                |   |                    | (55    | )      |                   |   | (50 | ) |   |   | (158 | ) |   |   | (143 | ) |
|                                                              |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-tax      stock-based compensation expense recognized(1)  |   | $                       | 1,791  |   |                   | $      | 1,445 |   |   | $ | 5,974 |   |   | $ | 4,047 |   |

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

----

----

----

ITEM 2

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

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

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

| ·   | Financial      Condition, Liquidity and CapitalResources |
|--------------------|----------------------------------------------------------|

| ·   | Off-Balance      Sheet Arrangements and ContractualObligations |
|--------------------|----------------------------------------------------------------|

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

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

| ·   | Revenues      decreased 2.0% during the third quarter of 2009 compared to the same      period in 2008. |
|--------------------|---------------------------------------------------------------------------------------------------------|

| -   | Comparable      store sales decreased 3.1%. |
|---------------|---------------------------------------------|

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

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

| ·   | Company      store operating costs as a percentage of Company store sales increased 0.2      percentage points during the third quarter of 2009 compared to the same      period in 2008. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Depreciation,      amortization and rent expenses increased a combined 0.8 percentage points      as a percentage of Company store sales, primarily due to ongoing capital      initiatives, new store development and the effect of lower sales on our      fixed costs. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | A      3.8% increase in average hourly wage rates was partially offset by      improved labor productivity in ourstores. |
|---------------|--------------------------------------------------------------------------------------------------------------------------|

| -   | Other      store operating expenses were flat as higher repair and maintenance costs      were offset by other operatingexpenses. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------|

| -   | The      average price per pound of cheese decreased by approximately      33%. |
|---------------|---------------------------------------------------------------------------------|

| ·   | General      and administrative expenses decreased to $11.3 million during the third      quarter of 2009 compared to $16.1 million in the third quarter of 2008      primarily due to the non-recurrence of $3.0 million in aggregate loss      contingencies related to prior year legal matters and a $0.9 million      benefit from the reduction of a federal income tax penalty reserve we      recognized in the third quarter of2009. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Interest      expense decreased to $2.8 million during the third quarter of 2009      compared to $5.1 million in the third quarter of 2008 primarily due to a      110 basis point decrease in the average effective interest rates incurred      on the outstanding balance of our revolving credit facility during the      third quarter of 2009 compared to the third quarter of 2008, as well as a      $56.2 million decrease in the average debt balance outstanding between the      two quarters. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net      income for the third quarter of 2009 increased 28.4% to $12.7 million from      $9.9 million in the same period in 2008 and diluted earnings per share      increased 27.9% to $0.55 compared to $0.43 in the same period in 2008.      Earnings per share benefited from our repurchase of 494,400 shares of our      common stock during the third quarter of2009. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                 |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|--------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
|                                 |   | September      27,      |   |   | September      28,     |   |   | September      27, |   |   | September      28, |   |
|                                 |   | 2009                    |   |   | 2008                   |   |   | 2009 |   |   | 2008 |   |
|                                 |   |                    |   |   |                   |   |   |   |   |   |   |   |
| Number      of Company-owned stores: |   |                    |   |   |                   |   |   |   |   |   |   |   |
| Beginning      of period             |   |                    | 496    |   |                   |   | 490 |   |   |   | 495 |   |   |   | 490 |   |
| New                                  |   |                    | -      |   |                   |   | 2 |   |   |   | 1 |   |   |   | 3 |   |
| Acquired      from franchisees       |   |                    | -      |   |                   |   | 2 |   |   |   | - |   |   |   | 2 |   |
| Closed                               |   |                    | (1     | )      |                   |   | (1 | ) |   |   | (1 | ) |   |   | (2 | ) |
| End      of period                   |   |                    | 495    |   |                   |   | 493 |   |   |   | 495 |   |   |   | 493 |   |
|                                 |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Number      of franchised stores:    |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning      of period             |   |                    | 48     |   |                   |   | 47 |   |   |   | 46 |   |   |   | 44 |   |
| New                                  |   |                    | -      |   |                   |   | 1 |   |   |   | 2 |   |   |   | 4 |   |
| Acquired      by the Company         |   |                    | -      |   |                   |   | (2 | ) |   |   | - |   |   |   | (2 | ) |
| Closed                               |   |                    | -      |   |                   |   | - |   |   |   | - |   |   |   | - |   |
| End      of period                   |   |                    | 48     |   |                   |   | 46 |   |   |   | 48 |   |   |   | 46 |   |

| ·   | 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                 |    |   | Nine      Months Ended  |   |
|------------------------------------------|--------|-----------------------------------------|---------|--------|-------------------------|--------|
|                                     |   | September      27, 2009                 |    |   | September      28, 2008 |   |   | September      27, 2009 |   |   | September      28, 2008 |   |
|                                     |   | (in      thousands, except percentages) |    |
|                                     |   |                                    |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Food      and beverage sales             |   | $                                       | 95,060  |   |                    |   | 48.1 | % |   | $ | 100,309 |   |   |   | 49.7 | % |   | $ | 314,662 |   |   |   | 49.9 | % |   | $ | 321,297 |   |   |   | 50.2 | % |
| Entertainment      and merchandise sales |   |                                    | 101,860 |   |                    |   | 51.5 | % |   |   | 100,569 |   |   |   | 49.8 | % |   |   | 313,117 |   |   |   | 49.6 | % |   |   | 315,154 |   |   |   | 49.3 | % |
|                                     |   |                                    |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Company      store sales                 |   |                                    | 196,920 |   |                    |   | 99.5 | % |   |   | 200,878 |   |   |   | 99.5 | % |   |   | 627,779 |   |   |   | 99.5 | % |   |   | 636,451 |   |   |   | 99.5 | % |
| Franchising      activities              |   |                                    | 898     |   |                    |   | 0.5 | % |   |   | 1,000 |   |   |   | 0.5 | % |   |   | 2,967 |   |   |   | 0.5 | % |   |   | 3,097 |   |   |   | 0.5 | % |
|                                     |   |                                    |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      revenues                      |   | $                                       | 197,818 |   |                    |   | 100.0 | % |   | $ | 201,878 |   |   |   | 100.0 | % |   | $ | 630,746 |   |   |   | 100.0 | % |   | $ | 639,548 |   |   |   | 100.0 | % |

|                                                                                                         |   | Three      Months Ended                 |                |   | Nine      Months Ended  |   |
|--------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|---------------------|--------|-------------------------|--------|
|                                                                                                         |   | September      27, 2009                 |                |   | September      28, 2008 |   |   | September      27, 2009 |   |   | September      28, 2008 |   |
|                                                                                                         |   | (in      thousands, except percentages) |                |
| Company      store operating costs:                                                                          |   |                                    |                |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of food and beverage (as      a percentage of food and beverage sales)                        |   | $                                       |  21,868        |   |                    |   | 23.0 | % |   | $ |  24,829 |   |   |   | 24.8 | % |   | $ |  69,626 |   |   |   | 22.1 | % |   | $ |  75,986 |   |   |   | 23.6 | % |
| Cost      of entertainment and merchandise (as a percentage      ofentertainment      and merchandise sales) |   |                                    |     8,947 |   |                    |   | 8.8 | % |   |   |     8,426 |   |   |   | 8.4 | % |   |   |     28,071 |   |   |   | 9.0 | % |   |   |     26,468 |   |   |   | 8.4 | % |
|                                                                                                         |   |                                    |                |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                         |   |                                    | 30,815              |   |                    |   | 15.6 | % |   |   | 33,255 |   |   |   | 16.6 | % |   |   | 97,697 |   |   |   | 15.6 | % |   |   | 102,454 |   |   |   | 16.1 | % |
| Labor      expenses                                                                                          |   |                                    | 54,593              |   |                    |   | 27.7 | % |   |   | 54,851 |   |   |   | 27.3 | % |   |   | 167,538 |   |   |   | 26.7 | % |   |   | 171,523 |   |   |   | 26.9 | % |
| Depreciation      and amortization                                                                           |   |                                    | 19,232              |   |                    |   | 9.8 | % |   |   | 18,638 |   |   |   | 9.3 | % |   |   | 57,186 |   |   |   | 9.1 | % |   |   | 55,343 |   |   |   | 8.7 | % |
| Rent      expense                                                                                            |   |                                    | 17,010              |   |                    |   | 8.6 | % |   |   | 16,741 |   |   |   | 8.3 | % |   |   | 50,643 |   |   |   | 8.1 | % |   |   | 49,594 |   |   |   | 7.8 | % |
| Other      store operating expenses                                                                          |   |                                    | 32,226              |   |                    |   | 16.4 | % |   |   | 32,904 |   |   |   | 16.4 | % |   |   | 92,635 |   |   |   | 14.8 | % |   |   | 91,353 |   |   |   | 14.4 | % |
| Total      Company store operating costs                                                                     |   |                                    | 153,876             |   |                    |   | 78.1 | % |   |   | 156,389 |   |   |   | 77.9 | % |   |   | 465,699 |   |   |   | 74.2 | % |   |   | 470,267 |   |   |   | 73.9 | % |
| Other      costs and expenses (as a      percentage of total revenues):                                      |   |                                    |                |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Advertising      expense                                                                                     |   |                                    | 9,179               |   |                    |   | 4.6 | % |   |   | 8,660 |   |   |   | 4.3 | % |   |   | 27,860 |   |   |   | 4.4 | % |   |   | 26,681 |   |   |   | 4.2 | % |
| General      and administrative expenses                                                                     |   |                                    | 11,328              |   |                    |   | 5.7 | % |   |   | 16,083 |   |   |   | 8.0 | % |   |   | 37,583 |   |   |   | 6.0 | % |   |   | 43,338 |   |   |   | 6.8 | % |
| Asset      impairments                                                                                       |   |                                    | -                   |   |                    |   | 0.0 | % |   |   | - |   |   |   | 0.0 | % |   |   | - |   |   |   | 0.0 | % |   |   | 137 |   |   |   | 0.0 | % |
| Total      operating costs and expenses                                                                      |   |                                    | 174,383             |   |                    |   | 88.2 | % |   |   | 181,132 |   |   |   | 89.7 | % |   |   | 531,142 |   |   |   | 84.2 | % |   |   | 540,423 |   |   |   | 84.5 | % |
|                                                                                                         |   |                                    |                |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income (as a percentage      of total revenues)                                          |   |                                    | 23,435              |   |                    |   | 11.8 | % |   |   | 20,746 |   |   |   | 10.3 | % |   |   | 99,604 |   |   |   | 15.8 | % |   |   | 99,125 |   |   |   | 15.5 | % |
| Interest      expense, net (as a      percentage of total revenues)                                     |   |                                    | 2,769               |   |                    |   | 1.4 | % |   |   | 5,052 |   |   |   | 2.5 | % |   |   | 8,938 |   |   |   | 1.4 | % |   |   | 12,948 |   |   |   | 2.0 | % |
|                                                                                                         |   |                                    |                |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      before income taxes (as      a percentage of total revenues)                                |   | $                                       | 20,666              |   |                    |   | 10.4 | % |   | $ | 15,694 |   |   |   | 7.8 | % |   | $ | 90,666 |   |   |   | 14.4 | % |   | $ | 86,177 |   |   |   | 13.5 | % |

----

----

----

----

|                                                 |   | Nine      Months Ended |    |
|------------------------------------------------------|--------|------------------------|---------|
|                                                 |   | September      27,     |    |   | September      28, |   |
|                                                 |   | 2009                   |    |   | 2008 |   |
|                                                 |   | (in      thousands)    |    |
|                                                 |   |                   |    |   |   |   |
| Net      cash provided by operating activities       |   | $                      | 127,431 |   |   | $ | 125,393 |   |
| Net      cash used for investing activities          |   |                   | (51,048 | ) |   |   | (61,159 | ) |
| Net      cash used for financing activities          |   |                   | (77,468 | ) |   |   | (66,968 | ) |
| Effect      of foreign exchange rate changes on cash |   |                   | (645    | ) |   |   | - |   |
|                                                 |   |                   |    |   |   |   |   |   |
| Change      in cash and cash equivalents             |   | $                      | (1,730  | ) |   | $ | (2,734 | ) |
|                                                 |   |                   |    |   |   |   |   |   |
| Interest      paid                                   |   | $                      | 9,231   |   |   | $ | 12,650 |   |
| Income      taxes paid, net                          |   | $                      | 18,845  |   |   | $ | 35,341 |   |

|                                                              |   | September      27,  |    |   | December      28, |   |
|-------------------------------------------------------------------|--------|---------------------|---------|--------|-------------------|--------|
|                                                              |   | 2009                |    |   | 2008              |   |
|                                                              |   | (in      thousands) |    |
|                                                              |   |                |    |   |              |   |
| Cash      and cash equivalents                                    |   | $                   | 16,039  |   |              | $      | 17,769 |   |
| Revolving      credit facility borrowings                         |   | $                   | 339,600 |   |              | $      | 401,850 |   |
| Available      unused commitments under revolving credit facility |   | $                   | 200,443 |   |              | $      | 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. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                   |   | Nine      Months Ended |   |
|------------------------|--------|------------------------|--------|
|                   |   | September      27      |   |   | September      28, |   |
|                   |   | 2009                   |   |   | 2008 |   |
|                   |   |                   |   |   |   |   |
| Major      remodels    |   |                   | 6      |   |   |   | 11 |   |
| Store      expansions  |   |                   | 15     |   |   |   | 8 |   |
| Game      enhancements |   |                   | 86     |   |   |   | 82 |   |
| Total      completed   |   |                   | 107    |   |   |   | 101 |   |

----

----

| ·   | 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 operatingcosts; |
|--------------------|---------------------------------------------------------|

| ·   | 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 distributionsystem; |
|--------------------|------------------------------------------------------|

| ·   | 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 technologysystems; |
|--------------------|--------------------------------------------------------|

| ·   | 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

----

----

ITEM 1.

ITEM  1A

----

ITEM  2.

| 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) |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| June      29 – July 26, 2009         |   |   | 449 |   |   | $ | 32.32 |   |   |   | - |   |   | $ | 51,293,101 |   |
| July      27 – August 23, 2009       |   |   | 147,728 |   |   | $ | 27.07 |   |   |   | 147,700 |   |   | $ | 47,295,020 |   |
| August      24 – September 27, 2009  |   |   | 346,700 |   |   | $ | 27.37 |   |   |   | 346,700 |   |   | $ | 37,805,555 |   |
| Total                                      |   |   | 494,877 |   |   | $ | 27.29 |   |   |   | 494,400 |   |   | $ | 37,805,555 |   |

|   | (1)For      the periods ended July 26 and August 23, 2009, the total number of shares      purchased included 449 shares and 28 shares, respectively, tendered by      employees at an average price per share of $32.32 and $33.98,      respectively, to satisfy tax withholding requirements on the vesting of      restricted stock awards, which are not deducted from shares available to      be purchased under our stock 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 October      22, 2007, the Board authorized a $200 million increase to the share      repurchase authorization bringing the total authorization to $600 million.      On October 27, 2009, the Board authorized a $200 million increase to the      share repurchase authorization bringing the current outstanding share      repurchase authorization available to approximately $237.8 million. The      stock repurchase program, which does not have a stated expiration date,      authorizes us to make repurchases in the open market, through accelerated      share repurchases or in privatetransactions. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ITEM  5.

| • | require      that stockholders give notice of any director nominations or business to      be considered by the stockholders not earlier than the close of business      on the 120th day and not later than the close of business on the 90th day      prior to the first anniversary of the preceding year's annual meeting;      provided, however, that in the event that the date of the annual meeting      is more than 30 days before or more than 60 days after such anniversary      date, notice by the stockholder to be timely must be so delivered not      earlier than the close of business on the 120th day prior to the date of      such annual meeting and not later than the close of business on the later      of the 90th day prior to the date of such annual meeting or, if the first      public announcement of the date of such annual meeting is less than 100      days prior to the date of such annual meeting, the 10th day following the      day on which public announcement of the date of such meeting is first made      by the Company; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | require      that stockholders, in the event that the Board of Directors has determined      that directors will be elected at a special meeting of stockholder, give      notice of any director nominations not earlier than the close of business      on the 120th day prior to the date of such special meeting and not later      than the close of business on the later of the 90th day prior to the date      of such special meeting or, if the first public announcement of the date      of such special meeting is less than 100 days prior to the date of such      special meeting, the 10th day following the day on which public      announcement is first made of the date of the special meeting and of the      nominees proposed by the Board of Directors to be elected at such      meeting; |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | clarify      that the advance notice provisions of the Amended and Restated Bylaws are      the exclusive means for a stockholder to make a director nomination or      submit other business before a meeting of stockholders (other than matters      properly brought under Rule 14a-8 of the federal proxy    rules); |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | require      that stockholder proponents and their affiliates disclose, in addition to      direct ownership interests and other information required by the proxy      rules, all other ownership, economic and voting interests, including      options and other convertible |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | securities,      derivatives, short interests, performance-based fees based on the increase      or decrease in the value of shares or derivative instruments, dividend      rights and any proportionate interest in any shares or derivative      instruments; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | require      director nominees to represent, among other things, that they do not, and      will not, have any undisclosed voting commitments or other undisclosed      arrangements with respect to their actions, compensation, reimbursement or      indemnification as a director and that, if elected, they will be in      compliance with certain corporatepolicies; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | require      directors nominated by stockholders to complete our director and officer      questionnaire; |
|---------|-----------------------------------------------------------------------------------------------------------|

| • | require      stockholders nominating directors to disclose material relationships      between (1) the stockholder proponents and their affiliates and (2) the      director nominees and theiraffiliates; |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | clarify      that any vacancy or newly created directorship resulting from an increase      in the authorized number of directors may only be filled by the vote of      two-thirds (2/3) of the directors then in office, unless such position      will be filled at an annual meeting of stockholders or at a special      meeting of stockholders at which the Board has determined that such      director will be elected; and |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ITEM  6

| 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 October 26, 2009 (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 October 29,      2009)                                                                                                            |
|                |   |                                                                                                                                                                                                                                                                                                                                                                |
| 4.1*                |   | Specimen      form of certificate representing $0.10 par value Common    Stock                                                                                                                                                                                                                                                                                      |
|                |   |                                                                                                                                                                                                                                                                                                                                                                |
| 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

|   |   | October      29, 2009 | By:    | /s/      Michael H. Magusiak                                              |
|--------|--------|-----------------------|--------|---------------------------------------------------------------------------|
|   |   |                  |   | Michael      H. Magusiak                                                  |
|   |   |                  |   | President      and Chief Executive Officer (Principal Executive  Officer) |
|   |   |                  |   |                                                                      |
|   |   | October      29, 2009 |   | /s/      Christopher D. Morris                                            |
|   |   |                  |   | Christopher      D. Morris                                                |
|   |   |                  |   | Executive      Vice President, Chief Financial Officer and Treasurer      |
|   |   |                  |   | (Principal      Financial Officer)                                        |
|   |   |                  |   |                                                                      |
|   |   | October      29, 2009 |   | /s/      Darin E. Harper                                                  |
|   |   |                  |   | Darin      E. Harper                                                      |
|   |   |                  |   | Vice      President, Controller                                           |
|   |   |                  |   | (Principal      Accounting Officer)                                       |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |
|   |   |                  |   |                                                                      |

----

| 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 October 26, 2009 (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 October 29,      2009)                                                                                                            |
|                |   |                                                                                                                                                                                                                                                                                                                                                                |
| 4.1*                |   | Specimen      form of certificate representing $0.10 par value Common    Stock                                                                                                                                                                                                                                                                                      |
|                |   |                                                                                                                                                                                                                                                                                                                                                                |
| 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                                                                                                                                                                                                        |
|                |   |                                                                                                                                                                                                                                                                                                                                                                |
|                |   |                                                                                                                                                                                                                                                                                                                                                                |
|                |   |                                                                                                                                                                                                                                                                                                                                                                |
|                |   |                                                                                                                                                                                                                                                                                                                                                                |
|                |   |                                                                                                                                                                                                                                                                                                                                                                |
|                |   |                                                                                                                                                                                                                                                                                                                                                                |

----