Grubhub’s stock plunged more than 40 percent on Tuesday — its worst single-day drop ever— after the food-delivery giant drastically slashed its financial outlook, warning that fierce competition is eating into sales and profits.
Full Answer
What happened to Grubhub stock?
This week, Just Eat Takeaway acquired 100 percent of GrubHub stock in a $7.3 billion all-share combination. What are American Depositary Shares? The transaction between GrubHub and Just Eat Takeaway has resulted in GrubHub's common shares converting to American depositary shares, or ADSs.
What does the Grubhub-Just Eat takeaway merger mean for investors?
They facilitate U.S. investments in international stocks. GrubHub, which has traded publicly on the NYSE since 2014, has been in talks with Just Eat Takeaway about a potential merger for some time. As a result of the merger, existing shareholders of GrubHub’s common stock are being issued new shares of ADSs for Just Eat Takeaway.
Is Uber Eats going to buy Grubhub?
The move was a bit of a surprise, as Uber Eats ( UBER) - Get Uber Technologies, Inc. Report was rumored to be interested in purchasing Grubhub before Just Eat beat it to the punch in 2020. The Grubhub sale happened in June 2021, and by its third-quarter presentation there was already bad news.
Why choose just eat and GrubHub?
I have always believed that the combination of Takeaway. com, Just Eat and Grubhub is a winning combination. The new company is the market leader in Europe, Canada and Australia, with very strong positions in the most important markets in the United States. It is humbling to run such a company after our start in Holland more than twenty years ago.
What happened to Grubhub stock?
The Amsterdam-based delivery provider said Tuesday that it will delist from the Nasdaq stock exchange sometime in the first quarter of 2022. It cited its low share price and the low percentage of its total shares held on Nasdaq (about 3.7%).
Why did Grubhub go down?
GrubHub received five downgrades, including double downgrades from both Bank of America Merrill Lynch and Oppenheimer following its disappointing third-quarter results. The food delivery company missed on revenue and posted a fourth-quarter forecast well below Wall Street's expectations.
Why did Just Eat Takeaway buy Grubhub?
Just Eat bought Grubhub for $7.3 billion at the time, and its market value now sits at about $5.8 billion. The dip in valuation is due in part to demand for services like food delivery dropping off as pandemic-related restrictions wane.
Is Grub a good stock to buy?
GrubHub Inc (NYSE:GRUB) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for GRUB is 59.1.
Will Grubhub go out of business?
Grubhub will continue to operate as a separate business, yet it may soon end its North American operations. The acquisition has been strategic for Just Eat to win the delivery war against Uber, as the service company tried to acquire the company in 2020 as well.
Is DoorDash better than Grubhub?
We think Grubhub's support of multiple payment options gives it a slight edge, though DoorDash has a lot going for it, too. If you're already using Uber to get around town, the Uber Eats app will have a familiar interface for ordering meals to go. Several other food delivery options specialize in certain areas.
Will Amazon Buy Grubhub?
Amazon buys GrubHub. GrubHub becomes a part of Amazon Prime. Now, Prime members get free delivery or discounted prices on all orders through GrubHub. Prime members will flock in droves from other platforms, to GrubHub, and they won't leave GrubHub so long as they keep getting free delivery or lower prices.
Will Uber buy Grubhub?
No, Uber and Grubhub didn't end up merging. The two sides were in discussions for over a month and even discussed the sale price in depth.
Who owns Grubhub now?
Just Eat TakeawayGrubhub / Parent organizationOn June 9, 2020, Netherlands based Just Eat Takeaway announced an agreement to buy Grubhub for $7.3 billion in stock.
How much is Grubhub worth?
What started as a simple way to order food from Chicago restaurants has grown into an online food-delivery empire worth over $4 billion.
What is Grubhub stock symbol?
GrubHub Inc (1GU)
Is TikTok on the stock market?
Can you buy TikTok stocks? Currently, shares of ByteDance (the Chinese company that owns TikTok) are not yet available on the stock market, as the company is privately held.
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WHAT'S UP?
Yesterday’s market recap covered the alarming 19% plunge in price for the automotive company Lordstown Motors (RIDE). This came off the back of dual CFO and CEO resignations. Today, the stock reversed its direction, up by 11% during the trading day and ultimately by 7% in the after-hours session.
WHAT'S DOWN?
If you recall the beginning of the food-delivery gig economy, Grubhub (GRUB) was among the leaders. Fast forward to today, the company caught my eye at the top of today's biggest losers on the winners and losers page. Shares were down more than 68%. However, this price drop doesn’t mean Grubhub is out of the game quite yet.
Why did Grubhub lose its value?
GrubHub had lost over half its value in the past three years, largely due to competition from Uber Eats and DoorDash. At least 14 shareholder lawsuits have been brought against GrubHub since the merger announcement a year ago, claiming the company acted unlawfully in the course of the merger agreement.
Who is the CEO of Just Eat Takeaway?
Jitse Groen, CEO and founder of Just Eat Takeaway, noted that the new company is the market leader in Europe, Canada, and Australia, and will also have a strong position in important U.S. markets. GrubHub founder Matt Maloney expressed his excitement about starting a new chapter in GrubHub’s story with the “global leadership and experience ...
Is GRUBhub publicly traded?
GrubHub, which has traded publicly on the NYSE since 2014, has been in talks with Just Eat Takeaway about a potential merger for some time. As a result of the merger, existing shareholders of GrubHub’s common stock are being issued new shares of ADSs for Just Eat Takeaway.
When is the next AGM 2021?
Shareholders will have a chance to take their concerns to the board at the next AGM on 18 June 2021 and vote on resolutions including executive compensation, which studies show may have an impact on company performance.
What is the loss to shareholders over the past three years?
The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.
