Takeaway.com shares dip as US growth stalls
By Toby Sterling
AMSTERDAM (Reuters) – Weaker than expected third-quarter orders at Just Eat Takeaway.com pushed shares of the online food delivery company down on Wednesday, with orders in the United States rising only 3%.
Shares of the company, which finalized its $ 7.3 billion purchase of its US counterpart GrubHub in June, were down 4.4% to 62.11 euros at 07.55 GMT, bringing losses this year to over by 30%.
Total orders for the quarter rose 25% to 266 million, below the 35% increase expected by analysts at ING Bank.
Growth in Britain, the company’s largest market, was 51%, but lowest in the United States, now its second-largest market.
GrubHub chief executive Matt Maloney said last week that he intended to leave in December, and Just Eat Takeaway said on Wednesday that he had launched “an improvement program to refocus the business on GrubHub strongholds “.
In a statement, group CEO Jitse Groen said, “With most of the world returning to pre-pandemic life, our growth in the third quarter of 2021 has remained strong. Just Eat Takeaway.com is well positioned for fall and winter, our traditional growing season.
In August, GrubHub suffered a setback when New York City, its largest U.S. market, capped its commissions and competitors can charge restaurants for using their platforms at 15% of food orders for delivery.
Takeaway competes with Uber Eats and Door Dash, in the United States, and Deliveroo and Delivery Hero in Europe, among others.
The company reiterated Wednesday its forecast for the full year of a loss before interest, taxes, depreciation and amortization of 1% to 1.5% on a gross transaction value of 28 to 30 billion euros (32 to 35 billion) for 2021, a loss of 280 to 380 million euros.
In August, Takeaway reported an EBITDA loss of € 190 million for the first half, but said it expected that number to improve in the second half.
The gross value of transactions in the third quarter, a common measure for e-commerce companies, increased by € 6.8 billion, or 21%, bringing the nine-month total to € 20.9 billion.
($ 1 = € 0.8657)
(Reporting by Toby Sterling Editing by Kim Coghill and Mark Potter)