Just Eat Takeaway: A Weak Business At A Compelling Valuation

Summary

• The food delivery industry's long-term outlook remains promising, driven by evolving consumer behaviors, the return of employees to offices, and projected growth in key markets.
• The company's fundamental weaknesses persist, particularly in the US and Southern Europe, raising doubts about its ability to compete in a crowded market.
• One potential bright spot is the prospect of shedding these underperforming operations, which could lead to a leaner and more focused business.
• While the profitability picture has improved slightly due to cost-efficiency measures and enhanced performance in certain regions, the long-term outlook remains uncertain. As a result, I maintain a cautious view of the company's long-term prospects.
• A conservative valuation based on an EBITDA multiple suggests that shares continue to offer an attractive opportunity.

petekarici

Investment thesis

I maintain my buy rating on Just Eat Takeaway.com N.V. (OTCPK:JTKWY) following a Q3 trading update from the company.

The food delivery industry's long-term outlook remains promising, driven by evolving consumer behaviors, the return of employees to offices, and

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.