GrubHub Inc. shares rose nearly 30% on Thursday after the company reported positive fourth quarter financial results. Revenue rose 49.2% to $205.08 million – beating consensus estimates by $3.34 million – and net income of $0.37 per share beat consensus estimates by six cents per share. Active diners increased 77% year over year, and gross food sales rose 39% to $1.1 billion over the prior year.
In addition to the financial results, GrubHub and Yum! Brands, Inc. announced a new partnership aimed at driving incremental sales to KFC and Taco Bell restaurants in the United States through online ordering for pickup and delivery. In conjunction with the agreement, Yum! Brands agreed to purchase $200 million worth of shares to provide GrubHub with additional liquidity to accelerate the expansion of its domestic delivery network. (See also: Grubhub Posts Strong Fourth Quarter Results.)
GrubHub shares moved higher on fourth quarter results this week, but traders will be watching these levels following the retracement. …read more
Read more here: GrubHub Stock Gives Up Ground After Breakout
Category: GRUB, YUM