GrubHub: Best Bet In A Crowded Space
Deciphering GrubHub: More Downside To Come
Mon, Sep. 19, 3:22 PM
- GrubHub (GRUB -1.2%) is back on a positive trajectory and set to gain share with improvements in its food delivery platform, says Cowen in bumping the stock's price target.
- The firm raised its target to $38 from $33 -- still lower than today's lowered price of $41.
- GrubHub faces hot competition in the area from the likes of Amazon (via PrimeNow), Uber and Yelp, but Cowen notes GrubHub's the biggest third-party player.
- The firm says core GrubHub brands will boost net food sales to $6.8B in 2025, from $2.4B this year.
- "GrubHub has attributed the vast majority of the acceleration to specific improvements made following the company's recent technology platform rollout," Cowen said. "Examples of improvements include restaurant recommendations and sorting, menu item recommendations, and checkout flow."
- GrubHub is up 70% YTD.
Wed, Aug. 17, 3:59 PM
- Seamless -- NYC-raised takeout/delivery service that's part of GrubHub (GRUB -2.1%) -- has launched its turnkey delivery service in Manhattan.
- The move expands availability and restaurant choice for Seamless customers looking for restaurant fare in 30 minutes or less.
- Seamless had announced an expansion to New York's outer boroughs in April.
- Today, Seamless boasts connecting diners with more than 11,000 restaurants in the greater New York area, thousands of those in Manhattan.
Tue, Aug. 16, 3:43 PM
- GrubHub (NYSE:GRUB) is down 2.1% today as Jefferies launches coverage with a Hold rating and some concerns about transparency in the business.
- Analyst David Reynolds has a $43 price target on the stock, implying 15% upside from current price.
- The company's move into delivery makes sense, Reynolds says, when you look at how the company is describing its current business: "With the move into RDS and a distinct lack of transparency, this initiation breaks through the complexity. We see three key business segments, 'Corporate', 'NY Consumer' and conclude the move into RDS makes sense when the third, 'US Consumer', ex-delivery is growing at only ~10% 15/18 CAGR."
- The UK provides a better market opportunity, Reynolds notes, but even there, key rival Just Eat is easier to understand. "One significant difference is that JE splits the income statement into four business segments, advancing investor understanding of the equity thesis; GRUB does not, hampering understanding."
- Shares hit a 52-week high of $40.01 last Wednesday. They're up 54.3% YTD.
Thu, Jul. 28, 3:03 PM
Thu, Jul. 28, 12:59 PM
Thu, Jul. 28, 9:41 AM
- GrubHub (NYSE:GRUB) has grabbed a new 52-week high, up 23.3% now to $37.88, after posting record revenues and beating expectations on top and bottom lines in its Q2 results.
- Sales were up more than 36% and EBITDA grew 32% to $37.6M, beating an expected $31.2M. Net income grew 37%.
- Active Diners rose 24% to 7.35M. "Daily Average Grubs" were up 23% to 271,100. Gross food sales gained 29% to $733M.
- The company's guiding to Q3 revenues of $116M-$119M (vs. consensus for $113.8M) and EBITDA of $30M-$32M (ahead of an expected $28.1M). For the full year, it's forecasting revenue of $480M-$488M (vs. consensus for $473.3M) and EBITDA of $136M-$142M (vs. expected $129.8M).
- Conference call to come at 10 a.m. ET.
- Press Release
Thu, Jul. 28, 9:16 AM
- Gainers: EVOK +31%. GRPN +29%. OCN +25%. ALR +20%. N +18%. ESI +15%. TPX +15%. GRUB +13%. LOGI +13%. VSTM +12%. CRUS +11%. ASPS +11%. CHCI +11%. EBIO +11%. AXTI +11%. VNR +9%. SPHS +9%. VGZ +8%. KONA +7%. CLF +6%. ARIA 6%. SPU 5%. YNDX 5%.
- Losers: INFN -32%. ARGS -18%. AVXL -10%. IVTY -10%. F -8%. CIEN -8%. CBD -8%. XCOM -7%. EXAS -6%. WFM -5%.
Thu, Jul. 28, 9:01 AM
Wed, Jul. 27, 5:30 PM
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Fri, Jul. 8, 7:31 AM
- Wedbush initiates coverage on Grubhub (NYSE:GRUB) with an Outperform rating.
- "We believe recent delivery initiatives and strategic acquisitions coupled with continued diner adoption of mobile-based restaurant take-out and delivery methods should drive robust revenue and earnings growth for the foreseeable future," reads the note from analyst Aaron Turner.
- Wedbush sets a price target of $40 on GRUB. Shares are inactive in the premarket session.
Tue, Jun. 21, 7:51 AM
Fri, Jun. 3, 2:44 PM
- GrubHub (GRUB +2.6%) has added Apple Pay to payment options on its food-ordering and delivery platform, expanding options and easing friction for its growing audience of users.
- Apple users will be able to pay for food orders using stored credit/debit cards and Touch ID.
- The move should add security to paying GrubHub, though the company is emphasizing quickness and convenience.
- Meanwhile, shares have hit a 2016 high of $28.53; they're up 17.4% YTD.
Thu, May 19, 2:24 PM
- Following a string of rollouts of its food delivery service to dozens of new markets, GrubHub (GRUB -1.8%) today makes news on the restaurant side, launching a new technology platform.
- The company's GrubCentral replaces OrderHub, the in-house technology GrubHub introduced in 2012 to allow restaurants to manage online orders.
- The new platform is more efficient, the company says, and allows restaurants to access order information, menus and financials from any device, freeing up counter space -- using a GrubHub tablet or their own Web browsers.
- Owners also get integrated delivery features with real-time updates on driver locations.
- Previously: GrubHub closes down 7.8% after news of Amazon's NYC food delivery move (May. 17 2016)
- Now read GrubHub: Continued Execution Dispels Competition Fears »
Tue, May 17, 7:29 PM
- GrubHub (NYSE:GRUB), which opened to the downside after Amazon.com (AMZN -2.2%) expanded its restaurant delivery offering into New York and Dallas, finished the day down 7.8% to hit its lowest point in nearly two months.
- Amazon's service is free with Prime membership and promises no markups from restaurants' online menus -- a move that Axiom analyst Victor Anthony says is a "long-term positive for Prime in that it is expected to increase retention."
- What's good for Amazon is bad for GrubHub, though: It's a "negative read through for the shares of GrubHub and other private food delivery services."
- Overall, GrubHub still has a consensus rating of Buy (and average price target just under $33, implying 42% upside), though seven analysts maintain Hold ratings on the stock.
- Now read GrubHub: It Will Only Get Worse »
Tue, May 17, 9:36 AM
- Amazon.com (AMZN +0.4%) has expanded its restaurant delivery offering to New York and Dallas, opening new competitive fronts in a hot market.
- The retailer is bringing its service, which is free with a Prime membership, to Manhattan and not the outer boroughs for now. And it says it won't mark up prices higher than what's shown on a restaurant's online menu.
- Dallas is a new market as well. Amazon Restaurants has been available in cities including Chicago, Los Angeles and Portland.
- Competitor GrubHub (NYSE:GRUB), which also offers delivery service in New York, is down 2.5% out of the open.
- Now read Amazon Flex Could Be The Next AWS »
Sat, May 14, 11:01 AM
- The retail sector stays in focus next week with Target (NYSE:TGT), Wal-Mart (NYSE:WMT), TJX Companies (NYSE:TJX), and Ross Stores (NASDAQ:ROST) all due to report on Q1 earnings to follow on a week of dismal reports and guidance from the department store sector (Nordstrom, L Brands, Macy's, Kohl's). Home improvement chains Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) are also due to spill numbers.
- The story from the Commerce Department's April read of retail sales (+3.0% Y/Y, +1.3% M/M) is one of a consumer spending on housing, entertainment, and personal care/fitness over apparel and general merchandise. The 10% Y/Y gain in the nonstore retailer category also tipped that the Amazon (NASDAQ:AMZN) Effect is magnifying.
- Amplify ETFs CEO Christian Magoon tells Seeking Alpha that the traditional retail model appears to be broken. Amplify's Online Retail ETF (NASDAQ:IBUY) is a bet on companies such as Netflix (NASDAQ:NFLX), GrubHub (NYSE:GRUB), Blue Nile (NASDAQ:NILE), and Shopify (NYSE:SHOP) that are reeling in millennial dollars.
- Magoon on retail: "Traditional retailers face the headwinds of higher cost structures including the very real threat of increasing wages in the form of the $15 minimum wage campaign. Less flexible with inventory management, they also are more vulnerable to issues like weather and changing consumer preferences."
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