Shares of food delivery company GrubHub tanked more than 40% after disappointing earnings and dismal guidance forced Wall Street to abandon the already struggling stock.
Full Answer
What happened Grubhub stock?
Grubhub parent company Just Eat Takeaway (JET) will no longer be a publicly traded entity in the U.S. The Amsterdam-based delivery provider said Tuesday that it will delist from the Nasdaq stock exchange sometime in the first quarter of 2022.Feb 8, 2022
Why has Grubhub stock dropped?
Shares of Grubhub ( GRUB ) have fallen today, down by 8% as of 12:20 p.m. EDT, after the New York City Council late yesterday approved a measure that caps the fees that online food ordering and delivery platforms can collect.May 14, 2020
Is Grub a good stock?
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.Mar 29, 2021
What happened grub?
On 6/15/2021, Just Eat Takeaway.com completed its acquisition of GrubHub (GRUB). As part of this transaction, GrubHub ceased trading on the New York Stock Exchange beginning 6/15/2021. Just Eat Takeaway.com began trading under the symbol GRUB on Nasdaq as of 6/15/2021.
What is Grubhub stock worth?
- OTC:GRUB - Stock Quote & News - TheStreet....Grubhub, Inc. (GRUB)Prev Close5.84Day Low/High5.65 / 5.8752 Wk Low/High5.57 / 22.26Volume290.67K1 more row
Which is bigger DoorDash or Grubhub?
Not only does Grubhub have wider availability than DoorDash, but it has one of the largest market shares of any food delivery app, working with 85,000 local takeout restaurants in over 1,600 U.S. cities and London. DoorDash, in contrast, is available in a few dozen U.S. cities and Canada.Feb 22, 2022
Is Grubhub worth buying?
Grubhub may not be the most lucrative side gig, but it's a great introduction to side-gigging and the gig economy, as are all of the other delivery platforms. It doesn't take too much to get going with Grubhub. As long as you maintain an active account, it'll be there when you need it.Mar 31, 2022
Who is buying Grubhub?
Just Eat TakeawayAnnounced acquisition However, on June 9, 2020, Just Eat Takeaway announced it would be purchasing Grubhub for $7.3 billion in an all-stock deal. The acquisition would create the largest online food delivery service outside of China, and provide Just Eat Takeaway with a base in the U.S. market.
Is Grubhub owned by seamless?
Food delivery company Seamless, a subsidiary of Grubhub since 2013 and one of the oldest online ordering services in the U.S., will soon cease to exist as its own brand.Jul 16, 2021
Is Grubhub owned by just eat?
Just Eat Takeaway.com has concluded the acquisition of US food delivery venture Grubhub for an enterprise value of $7.3bn. As part of the transaction, Just Eat Takeaway.com acquired 100% of the shares of Grubhub in an all-share combination.Jun 16, 2021
Will Grubhub be bought out?
Amsterdam-based Just Eat Takeaway (JET) on Tuesday completed its acquisition of Chicago-based Grubhub in a $7.3 billion, all-stock transaction that makes the combined entity one of the largest food delivery companies in the world, with primary operations in the U.S., Germany, the U.K., Canada and the Netherlands.Jun 15, 2021
When did just eat Grubhub?
Just Eat Takeaway acquires Grubhub for $7.3 billion to create largest food delivery firm outside China. Signage for Just Eat is seen on the window of a restaurant in London, August 5, 2019.Jun 11, 2020
The food delivery specialist saw business in key markets take a hard hit because of the pandemic
Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time.
What happened
Grubhub ( NYSE:GRUB) stock fell sharply on Thursday after a first-quarter earnings report that failed to produce the expected gains from the coronavirus pandemic.
So what
Although food delivery turned out to be a lifeline that has kept many restaurants afloat, New York is Grubhub's biggest market for both consumers and corporate orders, and is also the epicenter of the pandemic.
Now what
Grubhub said "active diners" jumped 24% to 23.9 million while "daily active grubs," a metric it uses to identify its daily users, declined 1% to 516,000. Gross food sales rose 8% to $1.6 billion.
Concerns about tougher competition, higher spending, and lofty valuations are weighing down this high-growth stock
Leo is a tech and consumer goods specialist who has covered the crossroads of Wall Street and Silicon Valley since 2012. His wheelhouse includes cloud, IoT, analytics, telecom, and gaming related businesses. Follow him on Twitter for more updates!
But here's the bad news..
For the fourth quarter Grubhub expects its revenue to rise 38% to 43% annually, easily beating expectations for 33% growth. However, its forecast for a 12% to 30% decline in EBITDA for the quarter missed expectations for about 30% growth.
Why Grubhub could still recover
The bear case against Grubhub is easy to grasp, but it glosses over a few of the company's strengths. First, Grubhub has been expanding its ecosystem with recent acquisitions like LevelUp, which added payment and loyalty services to its "Grubhub for Restaurants" platform.
The bottom line
I own a small position in Grubhub, but I admit it isn't a stock for queasy investors. The company's bottom line will face pressure as the competition intensifies, but I think its first mover's advantage and aggressive expansion strategy will help it fend off its rivals.
