Just Eat prepares to join the big leagues
Next month, online takeaway delivery service Just Eat will join the FTSE 100, with a market valuation of around £5.6 billion. The company went public in 2014, and since then, its value has tripled – easily outperforming the index. This growth is being driven by British consumer preferences, and the trends that led to their change show no sign of slowing down. Add in the company’s recently approved merger with Hungry House, and Just Eat is on the cusp of becoming a major player.
Just Eat is overtaking the big supermarkets – once the “go-to” destination for eating in. At the start of this month, it overtook Sainsbury’s and Morrisons in size, two big names in UK food shopping. It’s also mounting a threat to “fast casual” dining chains – staying in and ordering online is simply more convenient. As Comptoir Group and Fulham Shore have seen their share prices dip, Just Eat has gone from strength to strength.
Just Eat’s ascension to the FTSE 100 has been incredible, but it faces stiff competition in the near future. Powerful new players like UberEats are looking to make in-roads into the UK market, and their deep pockets and tech capabilities make them a force to be taken seriously. Still, if it continues on its current trajectory, so is Just Eat!
Dominion holds Just Eat in its Global Trends Managed Fund.
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