The Irving, Texas-based company, which has a market capitalization of around $760 million, is working with Goldman Sachs Group Inc and has been speaking with interested buyers over the last several months, the people said.
The people declined to comment because the matter is not public.
CEC and Goldman Sachs declined to comment.
CEC and its franchises operate 567 Chuck E Cheese stores in 47 states, the majority of which are owned and operated by the company. The company’s Chuck E Cheese stores have musical and robotic entertainment, games, rides, play areas and food like pizza and sandwiches.
CEC is the latest in a handful of restaurant chains which are exploring a potential sale.
CKE, the restaurant group that owns the Carl’s Jr and Hardees chains, sold to buyout firm Roark Capital in November for between $1.65 billion and $1.75 billion.
Hospitality firm Carlson is attempting to sell its TGI Fridays business, while Ruby Tuesday Inc and Dave & Busters are also on the block, sources familiar with the matter said previously.
Olivia Oran is a reporter for Reuters News in New York