Online Food Delivery Upstart GrubHub Defies Rivals With Strong Quarter
Online food order and delivery company GrubHub reported a better-than-expected quarterly revenue, as more diners used its services to place orders.
The company, which has a delivery network spread across 1,100 U.S. cities as well as London, also forecast revenue of $136 million-$138 million for the current quarter, largely above analysts’ average estimate of $136.2 million, according to Thomson Reuters I/B/E/S.
The number of active diners rose 19.5% to 7.7 million, the company said on Wednesday.
GrubHub (GRUB) has been fending off competition from the increasingly crowded food delivery industry. Among those seeking to steal share are Yelp, Postmates, Square’s Caviar, Amazon.com‘s Prime service, Uber’s UberEATS and the most recent entrant, Facebook.
GrubHub CEO: Bring it on.
Net income attributable to shareholders rose to $13.2 million, or 15 cents per share, in the third quarter ended Sept. 30, from $6.9 million, or 8 cents per share, a year earlier.
Excluding items, GrubHub earned 23 cents per share. Revenue rose 44.1% to $123.5 million.
Analysts were expecting revenue of $118.45 million on earnings of 19 cents per share.