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Update: GrubHub Reports Blowout Q4 And Full Year Results, And Announces Acquisitions

GrubHub Inc.'s (GRUB) announcement of a blowout Q4 and full-year 2014 furthers my bull thesis that has been outlined since the IPO. GRUB's most recent results reported - that the company now has over 5 million Active Diners, that its Daily Average Grubs have grown 33% Y/Y to over 200,000 (as of Q4 Y/Y), and that Gross Food Sales eclipsed $1.8 billion on the full year (a 39% increase Y/Y) - have allowed share performance to catch back up to operational performance. Shares have now risen 30% since I initiated coverage shortly after the IPO.

Also, GRUB's use of cash examples that management was engaged in the process of looking for shareholder value expansive ways to deploy the growing C&CE balance, something that was my primary concern as of my last update. GRUB's willingness to grow by acquisition and its willingness to acquire ancillary space capacity (namely with its acquisition… Read More …