Just Eat Takes Major Step, Sells Grubhub for $650M

Just Eat Takeaway.com N.V. has announced a definitive agreement to sell Grubhub Inc. to Wonder Group, which is expected to boost its growth and cash generation abilities. The transaction's net proceeds are projected to reach up to $50 million, demonstrating a strategic move for future investments.

Date: 13-11-2024

AI Rating: 7

Just Eat Takeaway.com N.V.'s agreement to sell Grubhub Inc. to Wonder Group for an enterprise value of $650 million is a significant development. It reflects Just Eat's strategic move to enhance its cash generation capabilities while eliminating material liabilities linked to Grubhub. The expected net proceeds of up to $50 million indicate a positive financial impact that could support Just Eat's investment strategies in more competitive markets.

The report states that in 2023, Grubhub generated 237 million orders and achieved gross transaction value (GTV) of 8.06 billion euros, along with adjusted EBITDA of 94 million euros. This suggests that, despite parting with Grubhub, Just Eat is moving away from a business that still has significant operational metrics.

Furthermore, Just Eat has indicated that the sale will not affect the company's guidance for 2024, maintaining stability as they transition out of Grubhub. This lack of impact on future guidance could further alleviate investor concerns, suggesting management’s confidence in sustaining growth without Grubhub in the portfolio.

Overall, the decision to divest Grubhub appears to be a calculated maneuver to streamline operations and focus on core strengths, possibly resulting in a positive outlook for Just Eat moving forward.

Stocks: JET.L