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Less than a year after completing its $7.3 billion acquisition of Grubhub, Just Eat Takeaway is considering selling the platform following a decline in online food orders.
A food delivery courier for Grubhub Inc. wears a protective mask in New York on April 6, 2020. (Jeenah Moon/Bloomberg via Getty Images)
A spokesperson for Just Eat Takeaway told FOX Business that there is interest for a “full or partial sale,” but declined to disclose specific potential buyers.
“Just Eat Takeaway.com has always stated that we are open to exploring opportunities to further strengthen Grubhub’s position,” the spokesperson added. “We have been in discussions with parties regarding strategic partners and have looked at all options on the table in order to explore full value for our shareholders.”
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Just Eat Takeaway has benefited from a rapidly increasing consumer base as a result of the COVID-19 pandemic, adding more than 20 million active consumers since April 2020. However, the company says it is experiencing a “higher-than-normal absolute churn level in the first half of 2022.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TKAYF | JUST EAT TAKEAWAY.COM NV | 30 | -2.25 | -6.98% |
The company reported 264.1 million orders across the globe and 89.6 million orders in North America in the first quarter of 2022, representing declines of 1% and 4%, respectively, compared to 267.1 million global orders and 94.7 million North American orders during the same period a year ago. Gross transaction volume amounted to €7.2 billion in the first quarter of 2022, up 4% compared with the same period of 2021, driven by a higher average transaction value.
“Our North American division has continued to perform well in spite of the impact of fee caps, which had a €192 million EBITDA impact over the last year,” the spokesperson added. “Grubhub at its core is a very healthy, and growing, business which is near to profitability, and would be, despite the impact of fee caps.”
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Going forward, the company is focused on enhancing profitability by increasing revenue per order, improving courier costs per order and reducing over and operating expenses. While the company warned that second quarter growth will “remain challenging,” it expects average monthly order frequency and returning customers to be above both pre-pandemic and pandemic levels.
Just Eat Takeaway expects year-over-year gross transaction volume growth in the mid-single digits in 2022, compared to previous guidance of GTV growth in the mid-teens, and an adjusted EBITDA margin in the range of -0.5% to -0.7% of GTV, compared to previous guidance of -0.6% to -0.8%.
Management expects to reach positive adjusted EBITDA for the full year 2023.
