Landmark Skybox

Breeze-Courier | Taylorville, IL
The Weather Network
Advanced Search
search sponsored by


LOGIN | SUBSCRIBE




KMRM

home : news : national news free February 18, 2020

1/11/2020 10:13:00 AM
Chicago-based GrubHub says it has no plans to sell

(AP) — Grubhub says it has no plans to sell the company, a day after media reports said it was exploring its options as competition in the food delivery business grows increasingly fierce.

The Wall Street Journal reported earlier this week that Grubhub Inc. — the second-largest player in the U.S. market by sales — was thinking about putting itself up for sale.

Grubhub said in a statement that because of the media speculation, it felt it was necessary to clarify “that there is unequivocally no process in place to sell the company and there are currently no plans to do so.“

The Chicago company stands out from other recent startups in that it is making money. Grubhub was punished in October when it slashed its revenue expectations, but it also reported food sales in the most recent quarter grew 15% year-over-year to $1.4 billion.

Grubhub said that because its profitability is secure, it believes there will likely be opportunities to acquire share this year and that it continues to consult with advisers on possible acquisitions.

Its stock fell 6% Friday.

Analysts are not completely ruling out an eventual sales of Grubhub, however.

While GrubHub is generating cash and profitable, analysts see its profit dropping this year and its stock lost more than 40% of its value in one day last autumn after it slashed its revenue forecast. Altogether, the industry’s four top players — Doordash, Grubhub, Postmates and Uber Eats — are losing $1 billion in earnings before interest, taxes, debt and amortization annually, according to estimates from Barclays analysts.

A sale may ultimately be the best way for Grubhub to get value for its business. Analysts say a buyer could pay well above Grubhub’s current stock price to bring it into the fold. The rise in stock prices in recent days for not only Grubhub but for potential suitor Uber due to buyout speculation shows how much value investors see in a potential deal, they say.





Article Comment Submission Form
Please feel free to submit your comments.

If you are looking for the SPEAK OUT submission form, you can find it by clicking here: Speak Out Form


Article comments are not posted immediately to the Web site. Each submission must be approved by the Web site editor, who may edit content for appropriateness. There may be a delay of 24-48 hours for any submission while the web site editor reviews and approves it.

NOTE: All information on this form is required. Your telephone number and email address will not be displayed or shared.
Submit an Article Comment
First Name:
Required
Last Name:
Required
Telephone:
Required
Email:
Required
Comment:
Required
Passcode:
Required
Anti-SPAM Passcode Click here to see a new mix of characters.
This is an anti-SPAM device. It is not case sensitive.
   










Trinity Dodge Fixed
Dr Paul The Dentist
NewsWebPagesOpinionPeopleObituariesAg & BusinessSportsContact UsLife
Subscriptions | Username & Password Reminder | Change Password | Life

Breeze-Courier & Printing | 212 S Main St. Taylorville, IL 62568 | (217) 824-2233 |
website@breezecourier.com

© Copyright 2014 Breeze-Courier & Printing. All Rights Reserved.
Original content may not be reprinted or distributed without the written permission of Breeze-Courier & Printing.

Software © 1998-2020 1up! Software, All Rights Reserved