GrubHub Profit Soars
October 26 2016 - 9:50AM
Dow Jones News
GrubHub Inc.'s third-quarter earnings soared as the online food
ordering and delivery company continued to attract more customers,
who in turn ordered more food from restaurants in the company's
network.
For the current quarter, the company forecast revenue of $136
million to $138 million, mostly higher than estimates of analysts
polled by Thomson Reuters for $136.2 million.
Chief Executive Matt Maloney said GrubHub delivers for
restaurants in more than 60 markets across the U.S. and that its
growth rate generally is highest in markets where its drivers also
deliver a substantial percentage of its orders.
Over all, GrubHub reported a profit of $13.2 million, or 15
cents a share, up from $6.9 million, or 8 cents a share, a year
earlier. Excluding stock-based compensation, acquisition-related
impacts and other items, adjusted per-share earnings rose to 23
cents from 13 cents. Analysts expected adjusted per-share earnings
of 19 cents.
Revenue increased 44% to $123.5 million, above expectations for
revenue of $116 million to $119 million.
The number of active diners—accounts used to place at least one
order in the previous 12 months—rose 19% to 7.69 million and
average daily orders grew 26%. Gross food sales improved 33% to
$735 million.
GrubHub, which went public in April 2014, has generated
increasing profit by charging restaurants a commission on orders
booked through its service. The company's acquisitions of DiningIn
and Restaurants on the Run last year expanded GrubHub's presence in
online ordering as well as deliveries for independent restaurants.
Earlier this year, GrubHub expanded its delivery presence with its
purchase of LAbite, a Southern California restaurant-delivery
service company.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
October 26, 2016 09:35 ET (13:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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