Will the COVID-19 Pandemic Help or Harm Grubhub?
Grubhub's (NYSE: GRUB) stock recently plunged after the food delivery company provided a business update regarding the COVID-19 pandemic. It warned that its business took a big hit in the second half of March, but noted that a few green shoots appeared in April. Let's see how the pandemic could affect its business in the long run.
Grubhub expects its first-quarter revenue and adjusted EBITDA to be "slightly above the midpoints" of its prior guidance for 8%-11% revenue growth and a 51%-71% decline in adjusted EBITDA. It also pulled its guidance for the full year, which had called for 8%-15% revenue growth with a 46% drop in adjusted EBITDA.
Image source: Grubhub.
Source Fool.com
