Will Grubhub Be a Tastier Morsel for Investors Once Its Acquisition Closes?
Online ordering and food-delivery company Grubhub (NYSE: GRUB) reported its second-quarter 2020 results on July 30, highlighting spectacular gross food sales for partner restaurants, explosive growth in diners and "Daily Average Grubs," and other positive, coronavirus-driven metrics. But its ballooning revenues led in the end to eight-figure quarterly net losses. If Grubhub can't achieve a net profit even with COVID-19's tremendous delivery sales boost, can it turn profitable once it merges with Just Eat Takeaway (OTC: TKAY.Y)?
The deal inked earlier this year will result in Grubhub's merging with Just Eat in an all-stock deal worth $7.3 billion. Matt Maloney, Grubhub's CEO, will remain at the helm of U.S. operations. He will also join Just Eat's board alongside two other Grubhub directors, potentially giving Grubhub's current executives continued regional management clout even when the company is reduced to a Just Eat division.
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Source Fool.com
