Just Eat Takeaway Faces Decline Amid North America Weakness

Just Eat Takeaway.com N.V. reported a decline in Gross Transactional Value and orders in Q3, indicating challenges in the North American market. Looking ahead, the firm anticipates growth in constant currency GTV outside of North America, alongside stable adjusted EBITDA expectations.

Date: 16-10-2024

AI Rating: 5

Just Eat Takeaway.com N.V. has shown mixed results in its latest report affecting its stock performance and potential investment decisions. The reported Gross Transactional Value (GTV) stands at 6.34 billion euros, which shows a decline of 3 percent from 6.53 billion euros in the same quarter last year. Moreover, a decrease in total orders by 6 percent, down to 211.1 million, raises concerns about consumer demand.

However, excluding North America, GTV demonstrated a growth of 3 percent, amounting to 4.16 billion euros. This positive trend could potentially signal areas of strength in markets like Northern Europe and the UK and Ireland.

The company's forward-looking guidance remains cautiously optimistic, with expected constant currency GTV growth for fiscal 2024 in the range of 2 percent to 6 percent year-on-year, and adjusted EBITDA projected at around 450 million euros. Furthermore, the commitment to achieving a long-term adjusted EBITDA margin exceeding 5 percent of GTV reflects a focus on operational efficiency and profitability.

The stock market reaction, with a 4.2 percent drop in share price, illustrates investor concern about the overall performance connected to North American challenges. As Northern Europe and the UK represent about 60 percent of total orders, the shift to focusing on these markets may provide a buffer against declines in less performing regions.

Stocks: JET