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The Zacks Analyst Blog Highlights: Grubhub, Uber, Waitr and McDonald's
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For Immediate Release
Chicago, IL –October 9, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Grubhub , Uber (UBER - Free Report) , Waitr Holdings and McDonald’s (MCD - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Grubhub Partnerships Help Steer Away Competition
Grubhubis relying on partnerships to counter competition from the likes of Doordash, Uber arm UBER Eats and Waitr Holdings in the U.S. online food delivery services market.
Notably, the company is trailing DoorDash in terms of market share. Per the latest report by analytics firm Second Measure, Grubhub’s share of the U.S. consumers’ meal delivery sales in August was 32%, lower than DoorDash’s 36%. Second Measure’s data do not include sales from Grubhub’s latest acquisitions — Tapingo and LevelUp.
Nevertheless, the company’s solid partner base that includes the likes of Yum Brands!, Shake Shack, Blue Apron, Dunkin’ Brands Group and Yelp, among others, is a key catalyst.
Moreover, the partner base continues to expand with the addition of Dine Brands, the parent company of Applebee's Neighborhood Grill + Bar and IHOP restaurants; McDonald’s; and Panera Bread in recent times.
This is expected to expand Grubhub’s footprint and user base. Notably, the company ended second-quarter 2019 with 20.3 million active diners. Further, momentum in gross food sales is a key catalyst.
Acquisitions Aiding Growth Amid Rising Expenses
Moreover, Grubhub has been supplementing organizational growth with acquisitions. The takeover of Yelp’s Eat24, Groupon’s OrderUp and Boston-based Foodler have broadened its portfolio of restaurants. The addition of Eat24 strengthened the company’s position across Tier 1 markets and almost doubled its business in a large number of Tier 2 markets.
Further, the LevelUp acquisition strengthened Grubhub’s customer base. The acquisition of Tapingo — a leading mobile-app for campus food delivery services — is expected to allow the company to serve more than 500,000 active diners across 150 universities.
However, increasing expenses due to planned expansion into new delivery markets and higher investments in marketing and advertisements are likely to keep margins under pressure. Furthermore, as these markets will take some time to generate volumes, higher upfront costs will hurt profitability.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Grubhub, Uber, Waitr and McDonald's
For Immediate Release
Chicago, IL –October 9, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Grubhub , Uber (UBER - Free Report) , Waitr Holdings and McDonald’s (MCD - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Grubhub Partnerships Help Steer Away Competition
Grubhubis relying on partnerships to counter competition from the likes of Doordash, Uber arm UBER Eats and Waitr Holdings in the U.S. online food delivery services market.
Notably, the company is trailing DoorDash in terms of market share. Per the latest report by analytics firm Second Measure, Grubhub’s share of the U.S. consumers’ meal delivery sales in August was 32%, lower than DoorDash’s 36%. Second Measure’s data do not include sales from Grubhub’s latest acquisitions — Tapingo and LevelUp.
Nevertheless, the company’s solid partner base that includes the likes of Yum Brands!, Shake Shack, Blue Apron, Dunkin’ Brands Group and Yelp, among others, is a key catalyst.
Moreover, the partner base continues to expand with the addition of Dine Brands, the parent company of Applebee's Neighborhood Grill + Bar and IHOP restaurants; McDonald’s; and Panera Bread in recent times.
This is expected to expand Grubhub’s footprint and user base. Notably, the company ended second-quarter 2019 with 20.3 million active diners. Further, momentum in gross food sales is a key catalyst.
Acquisitions Aiding Growth Amid Rising Expenses
Moreover, Grubhub has been supplementing organizational growth with acquisitions. The takeover of Yelp’s Eat24, Groupon’s OrderUp and Boston-based Foodler have broadened its portfolio of restaurants. The addition of Eat24 strengthened the company’s position across Tier 1 markets and almost doubled its business in a large number of Tier 2 markets.
Further, the LevelUp acquisition strengthened Grubhub’s customer base. The acquisition of Tapingo — a leading mobile-app for campus food delivery services — is expected to allow the company to serve more than 500,000 active diners across 150 universities.
However, increasing expenses due to planned expansion into new delivery markets and higher investments in marketing and advertisements are likely to keep margins under pressure. Furthermore, as these markets will take some time to generate volumes, higher upfront costs will hurt profitability.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.