Just Eat shares jumped after the UK online takeout service raised its sales and earnings guidance on the back of surging orders.
The stock gained as much as 8.7 per cent to 416.9 pence, boosting the company’s market value to £2.8 billion.
Just Eat is benefiting as more consumers order takeout food for home delivery rather than dine out. Total orders rose to 31.5 million in the first quarter, up 41 per cent on a so-called like-for-like basis. The growth is in contrast to Restaurant Group, owner of the Frankie & Benny’s chain, which on Friday forecast another hit to profits amid deteriorating sales.
"We have had an excellent start to 2016,” Just Eat Chief Executive Officer David Buttress said in a statement. “We are well positioned to continue benefiting from channel shift in the category."
Just Eat charges restaurants a commission when a customer places a takeout or delivery order through its website. The revised forecast reflects an increase in the rate charged to UK eateries, it said.
The company now expects full-year revenue of €358 million, up from a previous forecast of £350 million. Underlying earnings before interest, tax, depreciation and amortisation are seen in a range of £102 million to £104 million, up from the prior guidance of £98 million to £100 million .
The London-based company counts 14.2 million active users and has partnered with more than 64,000 restaurants.
News by Bloomberg, edited by Hospitality Ireland