Grubhub share price surges on back of incredible second quarter
Grubhub released second-quarter earnings this week that blew investors away. The company, which is at the forefront of the trend towards food order and delivery, reported numbers that smashed the Street’s expectations, as well as its own comparable period. Unsurprisingly, the share price (which had already been outperforming this year) surged upwards. At time of writing it has returned more than 90% to shareholders this year alone!
Grubhub’s share price skyrocketed yesterday on the back of strong results
Source: Yahoo Finance
Grubhub posted earnings of 50¢ per share (EPS) for the quarter, beating analysts’ expectations of 42¢ and easily overshooting the year-ago quarter’s 26¢. It did similarly well in regards to revenue, bringing in $239.7 million against expectations of $233 million – and a comparable figure of $158.8 million.
The company said that the number of “active diners” on its platform rose by a staggering 70%, year on year, to 15.6 million. At the same point last year, Grubhub had just 9.2 million active diners. But the most important metric Grubhub reports could be “Daily Average Grubs” (as the company refers to its average number of orders per day). So investors should be particularly pleased to hear that they rose by 35% to 423,200.
Grubhub’s founder and CEO, Matt Maloney, made the following comment: “We had a standout quarter, highlighted by a record number of new diners trying Grubhub for the first time. We generated robust order growth, while continuing our rapid delivery expansion and adding thousands of high quality new restaurant partners. We’re also thrilled to announce the LevelUp acquisition. LevelUp’s leading restaurant-facing technology and the team they have built in Boston will help Grubhub provide the most comprehensive solution for restaurants, powering everything from online demand generation to fulfillment for restaurants.”
Dominion holds Grubhub in its Global Trends Ecommerce Fund.
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