|Bid||39.70 x 900|
|Ask||39.76 x 900|
|Day's range||38.58 - 40.69|
|52-week range||32.11 - 87.98|
|Beta (3Y monthly)||1.11|
|PE ratio (TTM)||925.35|
|Earnings date||5 Feb 2020 - 10 Feb 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||38.91|
NEW ORLEANS, Nov. 15, 2019 -- Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), is.
(Bloomberg) -- GrubHub shares are trading higher Friday after Barclays raised its investment opinion two notches, to overweight from underweight.The “irrational competitive landscape” in online food delivery over the past 15 months, and GrubHub executives’ “ill-timed strategic investments, and poor execution” have resulted in the stock plunging 75% to two-year lows, analyst Deepak Mathivanan told clients. As such, Mathivanan has a few requests for the GrubHub board of directors, and upgraded “on the hope of swift execution.”One request to the board is to explore consolidation with another leading food delivery player, which should result in “meaningful synergies.” Mathivanan believes that under the right M&A scenario, shares could be valued at “well north of $50 per share.” He noted the German market as a case study, where Ebitda improved after Takeaway.com NV’s acquisition of Delivery Hero SE’s German business and Takeaway shares rallied more than 75% since the December announcement. Delivery Hero climbed almost 60%.Another recommendation for GrubHub directors is to “reduce investments on unproven areas.” There’s been little benefit from the $100 million in additional marketing investment over the past 12 months, and now GrubHub is planning to spend another $150 million on “other unproven strategies,” he said. “We don’t believe these programs are likely to help achieve sustainable growth in this intense competitive environment.”Mathivanan also urges asset value preservation “before it’s too late.” GrubHub has “meaningful asset value” from its corporate offering and NYC/Chicago consumer businesses. “These assets are under intense attack from competition.” The analyst believes that GrubHub is a “dominant brand” that is worth “a lot more than current valuation under the right strategy in a rational market.”GrubHub shares rose as much as 5.7% Friday to $40.69. Barclays’ positive rating comes after Mathivanan’s 22 months in the bearish camp, during which time GrubHub fell 49% compared with the S&P 500’s advance of 8.5%.(Updates to add regular session share move in sixth graph.)To contact the reporter on this story: Janet Freund in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Scott Schnipper, Steven FrommFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
With Uber still trading below its IPO price and WeWork still reeling from its IPO disaster, could DoorDash be SoftBank's next make or break unicorn?
(Bloomberg) -- Elon Musk might have finally made good on his long-promised “short burn of the century” last month at Tesla Inc., but that doesn’t mean the bears will go wanting.They can just turn to GrubHub Inc. and Uber Technologies Inc. in the wake of the struggling food-delivery app’s historic sell-off and the ride-hailing company’s underwhelming year. They’ve become the most profitable U.S. stocks to sell short. Musk’s electric carmaker Tesla had held that title until its surprise third-quarter profit triggered a 36% rally.GrubHub has now become 2019’s most lucrative short with a mark-to-market profit of around $829 million, according to Nov. 11 data provided by S3 Partners research head Ihor Dusaniwsky. The company is followed by Uber, which shows a $626 million mark-to-market gain for shorts this year.The pair unseated Tesla, which topped the list earlier this year. Now Tesla short-sellers are looking at $709.6 million in mark-to-market losses for 2019, according to S3.Bears gained the upper hand at GrubHub as it plunged a record 43% after its fourth-quarter revenue guidance missed analyst estimates. Some of the company’s largest rivals, Uber Eats and DoorDash, are taking share from GrubHub’s core U.S. market, according to Bloomberg Intelligence analyst Mandeep Singh. Its sales growth is expected to “decelerate meaningfully in 2020,” he wrote in a recent note.Uber has declined 3.1% since its 180-day lock-up period expired last week and is hovering around the lowest level since it went public in May. A regulatory filing showed that the company’s founder, Travis Kalanick, sold 20% of his stake in the company.Below is a list of top 10 most profitable shorts in the U.S. this year:By contrast, the least profitable shorts this year, per S3 data, are Apple Inc. and Alibaba Inc.The S&P 500 Information Technology Index, which includes some of the names in this list, has advanced 39% this year.To contact the reporters on this story: Anisha Sircar in New York at firstname.lastname@example.org;Tatiana Darie in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Richard Richtmyer, Jennifer Bissell-LinskFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Whilst it may not be a huge deal, we thought it was good to see that the Grubhub Inc. (NYSE:GRUB) Independent...
Papa John's reported positive same-store sales growth in North America for the first time in two years during its third quarter.
(Bloomberg) -- Shake Shack Inc. tumbled by the most ever Tuesday after the burger chain’s third-quarter comparable sales trailed estimates and management reduced its sales target.“After seeing improved trends over the last two quarters, 3Q results -- as well as 4Q commentary -- were a sobering reminder of the volatility in results that often accompanies the stocks of young, fast growing companies,” Morgan Stanley analyst John Glass wrote in a note.Shake Shack’s decision to move to a single delivery provider (GrubHub) caused “some noise” in quarterly same-restaurant sales, management said on the conference call. Wall Street analysts said the full-year 2019 comparable sales forecast implies a decline in the fourth quarter and they expect the transition impact to last into 2020.The stock fell as much as 18% to $68.90 to the lowest intraday since July 2. As a result of Tuesday’s drop, Shake Shack loses its top performer status in the S&P 1500 Restaurant Index to Chipotle Mexican Grill Inc.Here’s what analysts are saying about Shake Shack results:Morgan Stanley, John GlassNot only did third-quarter comparable sales miss estimates, but the fourth quarter “could be far worse” because delivery integration is disconnected with other providers as Shake Shack moves to its single-provider relationship with GrubHub, Glass wrote in a note. Fourth-quarter same-restaurant sales could fall 3%, and sales will be hurt by the delivery transition for “a few quarters post this change.”Sales pressure, combined with “a more challenged cost outlook,” resulted in the analyst cutting his fourth-quarter earnings estimate to a loss-per share of five cents from earnings per shares of six cents.Rates equal-weight, price target to $76 from $84.SunTrust Robinson Humphrey, Jake BartlettThe temporary disruption from switching to a sole delivery provider “is much worse than we anticipated.”Still, he expects joint marketing with GrubHub, GrubHub’s “aggressive” expansion strategy and Shake Shack’s greater focus on menu innovation in 2020 will drive positive same-store sales by the second half of next year.Bartlett is “sharply lowering estimates” as negative comparable sales and G&A investment pressure margins, but he views the sharp pullback in the stock as a buying opportunity.Rates buy, price target to $85 from $102.What Bloomberg Intelligence Says:“We think the delivery headwind will likely dissipate by 2Q. The chain’s superior food quality and technology upgrades will likely fuel another low single-digit same-store sales gain in 2020. Margin pressure will remain a challenge, however, as labor and commodity inflation and higher packaging costs and fees associated with delivery persist.”--Michael Halen, click here for noteWedbush, Nick Setyan“Given the limited visibility into the impact of dropping non-GrubHub delivery partners, somewhat offset by a ramp in deliveries with Grub, we believe it is prudent to expect negative SSS growth beyond just Q4.”Setyan also believes that cannibalization and new comparable base units will remain ongoing headwinds to medium- to long-term same-restaurant growth.Estimates fourth-quarter comparable store sales down 3.2%, first-quarter 2020 down 1.5% and flat comps for all of 2020.Rates neutral, price target to $75 from $84.MKM Partners, Brett Levy“Following 2Q19 earnings, the market rewarded SHAK (an ~18% gain vs S&P 500 +1%), while 3Q19 results appear to be facing a stark reversal of fortune,” Levy wrote in a note.So what changed from one quarter to the next? The analyst believes it is a “combination of some strategic decisions (including the removal of multiple delivery partners and technology investments) along with traditional external factors (including labor and commodity inflation and marketing, among other factors).”While Shake Shack’s unit growth rate is outpacing many in the restaurant industry, Levy believes “near-term choppiness, the company’s ongoing investment phase, and SHAK’s lofty valuation” support his neutral rating. Price target remains $75 per share.(Updates first and fourth graphs and adds new chart)To contact the reporter on this story: Janet Freund in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Scott SchnipperFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Uber Technologies Inc. seems to have decided to stop chasing stupid growth. This is exactly what investors wanted, yet the company’s latest results, announced on Monday, show how far Uber has to go to be sustainable and rational.In the third quarter, the total value of Uber rides, restaurant meal deliveries and other transactions increased 29% from a year earlier — the slowest rate of increase since Uber began reporting that figure. The total figure of $16.5 billion was also a little short of analysts’ expectations, as was the growth in average monthly customers using Uber services at least once. That most likely contributed to the after-market decline in Uber shares.What Uber seems to be doing is precisely what investors want now. The company is trying to stop growing where it doesn’t make sense. Third-quarter revenue from rides, excluding what Uber classifies as excessive driver incentives and driver referrals, increased 23% in the quarter, rebounding from a growth slowdown. The adjusted revenue growth for Uber Eats, the restaurant delivery service, also accelerated.The divergence between slowing growth in total transactions and a faster pace of revenue in crucial segments suggests that Uber has increased consumer prices, reduced incentives or made other tweaks to keep more revenue from each ride or food delivery — even if that means some people are turned off enough not to use Uber at all. This is rational, yes, but acting like a sensible company may also crimp Uber’s eventual size and ambition. Uber also said it’s aiming to have positive adjusted earnings before interest, taxes, depreciation and amortization in 2021. That is far earlier than analysts have expected Uber to be profitable — or profitable-ish. Lyft made a similar pledge last month to be in the green by the end of 2021 on a massaged profit number that excludes stock compensation and some other costs.It’s useful to step back and see how much has changed for Uber, Lyft and other young and richly valued companies. Ever since these companies went public in the first half of this year, Uber and Lyft have been forced to shift gears and chase profits, or some semblance of them, rather than boasting about how big they can grow if they swallow more of people’s current spending on transportation.This is the new normal for young companies like Uber: Investors want them to grow, but not if the growth is achieved with unsustainable spending or rash financial trade-offs. There in the penalty box is WeWork, the office leasing startup that did exactly that.I will say that a forecast for profits-ish in two years is a long time in this constantly shifting industry. Heck, just a year ago, Uber might have been valued at $120 billion. Both Uber and Lyft have said recently that price wars have eased, presumably by curbing the cut-rate fares for riders and bonuses or other incentives for drivers.But competitive dynamics can change quickly. The takeout and food delivery company GrubHub Inc., for example, said recently that it’s going to try to steal market share from companies like Uber by offering to slash order delivery fees from at least some popular chain restaurants, plus other growth-minded steps. It’s possible Uber might feel the need to follow GrubHub’s lead, particularly if other U.S. competitors do the same. Uber is in a tricky position. Its potential ceiling is much higher than Lyft’s because Uber has spread its tentacles into many parts of the world and expanded far beyond its original business of car rides at the push of a smartphone app. That expansion also makes it difficult for Uber to improve its economics and quickly pivot from chasing growth to chasing profits. For every dollar of revenue in the first nine months of this year, Uber bled 25 cents of cash from its operations. That is a high rate of cash oozing out of the company, and it’s not trivial to reverse the trend.Uber and Lyft also have to contend with interest by regulators and lawmakers to impose more restrictions on the companies or force them to increase driver earnings and cut back on the number of cars on the road in large cities. That will put pressure on the companies’ revenue and profits, crimp the use of those ride services or both. Uber may slow the financial bleeding faster than planned, but its new profit mindset doesn’t change its essential character: a highly valued company that may — or may not — be an economically viable one. To contact the author of this story: Shira Ovide at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shira Ovide is a Bloomberg Opinion columnist covering technology. She previously was a reporter for the Wall Street Journal.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Potbelly Corporation (PBPB), the iconic neighborhood sandwich shop concept, today announced a nationwide partnership with Grubhub (GRUB), the nation's leading online and mobile food-ordering and delivery marketplace, which will support its delivery service expansion from the Company’s more than 450 locations. “We are proud to partner with Grubhub as we continue to increase our presence in the all-important delivery channel,” said Alan Johnson, President and Chief Executive Officer of Potbelly Corporation. “We understand that customers are loyal to the delivery app they use, and we are excited to offer Potbelly across the Grubhub platform.
(Bloomberg Opinion) -- As third-quarter earnings season rolls on, a paradox confronts the restaurant industry. On the one hand, restaurant companies are touting the rise of off-premise and digital sales, which includes delivery, as an increasingly important source of growth. On the other, GrubHub Inc. just announced disappointing quarterly results and said that food delivery is only a means to an end, unlikely to ever be profitable on its own. The risk heading into 2020 is that the inevitable reckoning for the food-delivery businesses will spread to the broader restaurant industry.Restaurants have based much of their recent growth on consumer deliveries and rely heavily on just four companies — GrubHub, DoorDash Inc., Postmates Inc. and Uber Eats — which combined have about 95% of the market. That's what makes GrubHub's latest quarter so ominous. In a letter to investors, it said it didn't believe "that a company can generate significant profits on just the logistics component of the business." In other words, delivery will always be a low-margin business at best. GrubHub also reported some troubling trends: new customers tend to order fewer deliveries than earlier users; customers are losing their brand loyalty, and are more willing to switch to rival services; and those rival services now tend to offer delivery from a wider ranges of restaurants than GrubHub. All told, the bottom line was net income of just $1 million versus $22.7 million in the same period a year ago.But GrubHub also made the argument that its value to restaurants lies in its potential as an online advertising partner, and that delivery services are really just a vehicle for generating ad sales.This should not be reassuring news for DoorDash and Postmates -- which have almost half the market for meal delivery -- their investors, or their restaurant partners. The context, of course, is that GrubHub, which actually is profitable, says that meal delivery isn't where the money is. So where does that leave DoorDash or Postmates, both of which are unprofitable and have a sky-high combined valuation of $15 billion, based on rounds of private investment funding earlier this year? Both now must cope with the long odds of going forward with initial public offerings this year after the botched IPO of WeWork parent We Co. And why would anyone bother putting more money into those unprofitable companies when investors can simply buy shares for much less in GrubHub, which now has a market value of $3 billion?It doesn’t seem all that far-fetched to imagine these two companies undergoing the same kind of brutal retrenchment that WeWork is facing; reducing advertising spending, cutting coupons and incentives, raising prices and exiting unprofitable markets. Uber Eats, of course, is a slightly different case because it's part of a much larger operation, theoretically one with more access to capital. Yet it faces similar funding constraints; parent Uber Technologies Inc. is a huge money loser, its shares have declined by almost 30% since the company went public in May and investors are looking for signs of profitability.If the food-delivery services start cutting back, it's likely to show up in restaurant earnings reports during the next several quarters. Just by way of example: On Tuesday evening in a conference call to discuss its latest quarterly results, Cheesecake Factory Inc. said that off-premise sales now comprise 16% of revenue, with delivery being 35% of that amount, or 5.6% of total sales. The company uses DoorDash for deliveries. If this relationship is typical, and there's every reason to think it is, it means restaurants are dependent on companies with a good deal of downside risk, in much the same way that owners of commercial properties are at risk from having WeWork as a major tenant.For now, GrubHub's bad news has only hurt its own stock. But to the extent its warning proves prescient, the restaurant industry could be in for a painful 2020.To contact the author of this story: Conor Sen at email@example.comTo contact the editor responsible for this story: James Greiff at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Conor Sen is a Bloomberg Opinion columnist. He is a portfolio manager for New River Investments in Atlanta and has been a contributor to the Atlantic and Business Insider.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Uber shares have surged 15% in the last month and jumped 4% Wednesday as we head into the release of its Q3 2019 financial results on Monday, November 4. So is it time to buy Uber stock now after Lyft's solid earnings?
So far, Yum! Brands (YUM) stock has fallen 8.5% as of 12:25 PM ET today. The company reported lower-than-expected earnings for the third quarter.