Mark Holder
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GrubHub: Fascinating Record Results

Raise your hand if you thought GrubHub (GRUB) would sit at 52-week highs and be approaching all-time highs?

The leading brand in online food ordering was seemingly under attack from every corner of the world. (AMZN) got into the market and Yelp (YELP) bought a competitor amongst numerous other start ups that entered the online food ordering and delivery sector. The stock soared 24% on Thursday after growing Q2 net income by over 30% and guiding to the following Q3 numbers:

  • Revenues of $116-119 million vs consensus of $113.8 million
  • EBITDA of $30-32 million vs consensus of $28.1 million

Unfortunately, the stock is rather expensive after this rally with a market value in excess of $3.2 billion and annual revenues approaching $500 million. The ability to fend off competition makes GrubHub one to watch and the results portend good numbers for Yelp in this area. 

Disclosure: No position