Chuck E. Cheese’s parent plans to return to NYSE again
Chuck E. Cheese’s parent company is having another go at the NYSE, through a merger with a special purpose company, making it the first restaurant company to enter the public market in four years.
With the closing of the merger with Leo Holdings, Queso Holdings - which owns CEC Entertainment, the parent company of Chuck E. Cheese and Peter Piper Pizza, is likely to see itself trading again this summer at NYSE with the ticker CEC.
Special purpose companies are asset-less and could only use the proceeds of an IPO to buy and take privately held consumer companies public.
The deal is expected to close in Q2 of 2019 and at the end of which Leo Holdings is planning to rename itself as Chuck E. Cheese Brands, while CEC Entertainment is likely to emerge as a subsidiary of Chuck E. Cheese Brands.
The IPO’s proceeds is likely to go towards paying down CEC’s outstanding debt of $978.9 million as of 30 December 2018.
CEC is expected to have an enterprise value $1.4 billion. In fiscal 2018, the company reported a net sales of $896 million, with more than half of its revenue coming from entertainment and merchandise. In its first quarter of fiscal 2019, the company reported a preliminary same-store sales growth of 7.7%.
The company has plans to reimage 60 stores by end of 2019, bringing its total number of remodelled locations to 92 out of its 515 company-owned stores.
However, private equity firm Apollo Global Management who had bought Chuck E. Cheese’s parent company in 2014 for about $948 million to take it private, is likely to not to sell its shares as part of the deal and is expected to hold a 51% stake in the newly formed company.
Momentum Indicator for LEVI turns positive, indicating new upward trend
LEVI saw its Momentum Indicator move above the 0 level on April 17, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 85 similar instances where the indicator turned positive. In of the 85 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for LEVI just turned positive on April 14, 2025. Looking at past instances where LEVI's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
LEVI moved above its 50-day moving average on May 02, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for LEVI crossed bullishly above the 50-day moving average on May 05, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LEVI advanced for three days, in of 308 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Oscillator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 13 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LEVI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
LEVI broke above its upper Bollinger Band on May 08, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for LEVI entered a downward trend on April 10, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.948) is normal, around the industry mean (3.082). P/E Ratio (32.742) is within average values for comparable stocks, (28.555). LEVI's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.991). Dividend Yield (0.024) settles around the average of (0.036) among similar stocks. P/S Ratio (1.320) is also within normal values, averaging (1.500).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. LEVI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LEVI’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a manufacturer of jeans, casual apparel, and sportswear
Industry ApparelFootwear