Grubhub Sales Impress, but M&A Disappointment Hits Shares
Investing.com
Published Feb 06, 2020 11:45AM ET
By Kim Khan
Investing.com - Grubhub (NYSE:GRUB) managed to top sales expectations in its fourth quarter, but investors seem displease it won’t sell itself.
The food delivery company reported mixed earnings after the bell yesterday that beat on the top line as it lured in more diners and added more restaurants to its network.
The company forecast full-year 2020 revenue between $1.4 billion and $1.5 billion and said it will generate $100 million of earnings.
The stock rose postmarket Wednesday, but was down 3.2% in morning trading today as the company quashed any thoughts that it was open to a takeover.
Reports of a complete buyout surfaced in January, which the company denied at the time.
Grughub reiterated on its conference call the rumors it was involved in a sales process, which had boosted the stock on anticipation of a deal with a premium, “was and is not true”, according to Briefing.com.
While the company does not usually comment on speculation, the “breadth of the media coverage” forced it to address the situation.
The oldest and until last year most dominant U.S. food delivery platform, Grubhub faces increased competition from rivals DoorDash, Uber's (NYSE:UBER) Uber) Eats and Postmates.
-- Reuters contributed to this report.
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