Investing.com - Financial Markets Worldwide
Final hours! Save up to 55% OFF InvestingProCLAIM SALE

NewsBreak: GrubHub's Murky Guidance Crushes Stock

Published 10/29/2019, 01:27 PM
Updated 10/29/2019, 01:38 PM
© Reuters.
MCD
-
PNRA
-
GRUB
-
UBER
-

Investing.com – Shares of online food delivery company GrubHub (NYSE:GRUB) lost more than 40% of their value Tuesday on at least five brokerage downgrades after the company projected weaker-than-expected fourth-quarter results amid intense competition.

  • The company expects revenue of $315 million to $335 million in the quarter. Analysts had been looking for $368 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) were projected at $15 million to $25 million. To move forward, the company said it must spend more to expand its list of restaurant clients and keep consumers using its app.

  • While revenue was up 30% in the third quarter to $322 million, analysts tracked by Investing.com had expected $330 million. Adjusted earnings were in line at 27 cents a share. Dining orders were down 15% from a year ago, on top of an 11% decline in the second quarter.

  • Competition is intensifying from the likes of Uber Technologies (NYSE:UBER), DoorDash and Post Mates. That's forcing GrubHub to offer free delivery for customers of important restaurant chains like KFC, McDonald’s (NYSE:MCD) and Panera Bread (NASDAQ:PNRA).

  • The stock hit a 52-week high of $97.96 in February and has lost 65% of its value since. It went public at $26 in 2014 and peaked at $147 in early 2018.

    Latest comments

    Install Our App
    Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
    Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
    Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
    It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
    Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
    © 2007-2024 - Fusion Media Limited. All Rights Reserved.