Just Eat is FTSE 100’s top mover on Tuesday thanks to strong first quarter
Just Eat’s share price surged this week, becoming the FTSE 100’s top riser on Tuesday morning. The jump was a direct result of the company’s strong first quarter, coming on the back of its earning release, which demonstrated a strong underlying business capturing impressive growth. This growth has been driven by Just Eat’s commitment to handle more deliveries itself, and act as more than just a link between restaurants and customers.
Just Eat’s share price surged on the back of first quarter earnings this week
SOURCE: Yahoo Finance
Just Eat said that revenues rose 49% from the same quarter in the previous year, to £177 million. This growth was “driven by strong order growth and a greater proportion of higher value delivery orders in the mix.” Underlying orders rose by 32%, demonstrating that people are not just ordering more food, but making more expensive orders too.
CEO Peter Plumb said: “Just Eat has had a strong start to the year. We delivered our 400 millionth order in the UK, grew well in Italy and Spain, whilst powering continued momentum in our Canadian delivery service SkipTheDishes.”
The company’s strong showing in the UK was bolstered by its acquisition of Hungryhouse earlier this year, and the inclusion of Easter weekend, which, the company says, added about 1% to UK order growth.
The strong showing this week comes after Mr. Plumb’s March statement that the company would heavily reinvest profits to build a business that could compete with new rivals like UberEats, Deliveroo, and Amazon. Based on Just Eat’s share price, investors are finally getting behind that strategy.
Dominion holds Just Eat in its Global Trends Managed Fund.
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