Quantcast

Why GrubHub Inc. Stock Popped 11% Last Month


What happened

Shares of GrubHub Inc. (NYSE: GRUB)  heated up again last month, as the food-delivery specialist continued gaining after posting a strong earnings report toward the end of October. Though there was little news out on the stock during November, momentum from the third-quarter earnings report and its recent acquisition of Eat24 from Yelp , along with a strategic partnership with the local review site kept the stock moving higher. As a result, Grubhub shares finished up 11%, according to S&P Global Market Intelligence .

The stock gained steadily over the course of the month:

GRUB Chart

GRUB data by YCharts

So what

In October, Grubhub shares tacked on 16% as the online restaurant marketplace beat estimates on top and bottom lines in its third-quarter earnings report. Revenue increased 32%, and earnings per share rose 22%. Investor confidence in Grubhub continues to build, as the company has successfully withstood challenges from deep-pocketed rivals Amazon.com and Uber and consolidated its leadership with its recent acquisition of Eat24, Foodler, and 27 of OrderUp's markets.

Female hand holding a smartphone with a food delivery app open

Image source: Getty Images.

Recent partnerships with Yelp and Groupon also gave the company a leg up in local commerce, as the two companies will integrate online ordering from Grubhub restaurants onto their platforms. With Eat24, Grubhub is now the market leader online food delivery in nine of the 22 biggest cities in the country, and a similar deal gave some of OrderUp's assets.

Now what

E-commerce stocks have exploded this year as customers are gaining appreciation for the potential of online shopping. Grubhub shares are now up 82% this year after mixed results earlier in the company's history. Amazon, meanwhile, has jumped 54% this year, and online furniture seller Wayfair has more than doubled, gaining 110%.

As restaurant traffic slides, eateries are increasingly turning to delivery platforms like Grubhub, and the convenience of online ordering and the need to have food delivered should ensure a long road of growth ahead for Grubhub.

10 stocks we like better than Grubhub
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Grubhub wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of December 4, 2017

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends AMZN and W. The Motley Fool recommends YELP. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Personal Finance , Stocks
Referenced Symbols: GRUB


More from Motley Fool

Subscribe






Motley Fool
Contributor:

Motley Fool

Market News, Investing








Research Brokers before you trade

Want to trade FX?





Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com