Just Eat Climbs as More Diners Sign Up for Online Takeaways
Just Eat rose in London after Britain’s biggest online food-delivery company lifted its full-year sales forecast as more diners and restaurants signed up to its takeaway service.
Sales during the first six months of the year rose 54 per cent to £107.8 million, with like-for- like orders gaining 47 per cent, it said in a statement Tuesday.
Some analysts have questioned whether Just Eat’s business model will be vulnerable to competition from larger established Internet delivery specialists such as Amazon.com. The company’s first-half earnings excluding interest, taxation, depreciation, amortization and some other items was £25.8 million, while its market value is £3 billion.
However, analysts at Goldman Sachs Group wrote in a note Tuesday that “we continue to believe Just Eat will benefit as online penetration of takeaway food increases.”
The company, which moved into Australia in May by buying Menulog for about $690 million, said additional investments in Brazil and Mexico - as well as further spending on technology and marketing - will drive revenue to about £230 million this year, with “over-performance” continuing in 2016. It had previously forecast sales “marginally” exceeding £200 million.
News by Bloomberg, edited by Hospitality Ireland