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Grubhub's Future Boss Sees Strong Quarter Ahead, Shares Trade Higher

Published 14/10/2020, 16:09
©  Reuters
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By Christiana Sciaudone

Investing.com --  Grubhub Inc (NYSE:GRUB) popped more than 6% as future owner Just Eat (LON:JE) Takeaway.com said third quarter order growth accelerated 46%.

“Order growth at Just Eat Takeaway.com further accelerated, consequently widening the gap to competitors in our key markets," said Just Eat Chief Executive Officer Jitse Groen. "We have continued to generate strong adjusted EBITDA, while investing aggressively, and are well-positioned for autumn."

With European countries facing more coronavirus-related lockdowns, the fourth quarter could also prove to be solid.

On June 10, Just Eat said it would buy Grubhub, and last month reported it had received all regulatory approvals needed for the deal. Last week, the acquisition was approved by Just Eat Takeaway.com shareholders. Subject to satisfaction of conditions, completion of the transaction is anticipated to occur in the first half of 2021.

Shares are up more than 66% this year. Uber Technologies (NYSE:UBER), which delivers food alongside rides, rose 20% in 2020. Rival DoorDash is expected to go public by the end of the year.

 

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