Just Eat trading update

Unsurprisingly, and with Covid restrictions persisting across its various national markets, these are strong numbers.

Article updated: 15 July 2021 8:30am Author: Keith Bowman

Half-year orders are up by 61%, or by 51% when allowing for the inclusion of the US business Grubhub. Delivery order growth in the UK came in at 733% over the first half of 2021 compared with the same period in 2020. Full-year 2021 orders for Just Eat and excluding Grubhub have been upgraded to more than 45% from a prior estimate of more than 42%.

Gross transaction value for the full year between both arms of the company is expected to be somewhere between €28 to €30 billion. Significantly, adjusted EBITDA losses are expected to have peaked, with a trend back to profitability expected.

In all, and on the downside, intense competition and ongoing required investment spend continue to offer headwinds. Full clarity on Grubhub and the degree of investment required provides a key investor concern. Just Eat shares are down around 27% (as of close 14 July) since announcing the Grubhub deal back in June 2020 compared to a gain of almost 12% for the wider FTSE 100 index. Worries for slowing growth as Covid restrictions ease also play into the mix.  

But a coming together with Takeway.com and Grubhub creates a food delivery company truly on the global stage. Partnerships with the likes of McDonald’s and Greggs in the UK are enticing customers. And the current emphasis on investment over profits appears to be playing the long-term game. For now, and despite reasons for caution, a consensus analyst target price of almost £97 per share leaves market opinion pointing to a buy.

More from Keith Bowman: read more articles directly on the interactive investor website.


These views are those of the author alone and do not necessarily reflect the view of The Share Centre, its officers and employees.

Keith Bowman

Investment Writer/Analyst

Keith began his career in the City in 1986 with Kleinwort Grieveson Securities. He then worked for Barclays and NatWest Stockbrokers before joining Hargreaves Lansdown as an Equity Analyst in 2005. A member of the Chartered Institute for Securities & Investment (MCSI), he joined interactive investor in 2019, where he now works as a companies analyst within the equities team. You will often see Keith quoted in the financial press.

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