GRUB

GrubHub Inc

TMT, Consumer


Presented:06/29/2016
Price:$30.53
Cap:$2.62B
Current Price:$2.64
Cap:$2.55B

Presented

Date06/29/2016
Price$30.53
Market Cap$2.62B
Ent Value$1.83B
P/E Ratio69.39x
Book Value$10.59
Div Yield0%
Shares O/S85.70M
Ave Daily Vol1,828,225
Short Int32.06%

Current

Price$2.64
Market Cap$2.55B
GrubHub, Inc. operates as an online and mobile food-ordering company, which connects hungry diners with local takeout restaurants. Its online and mobile ordering platforms allow diners and corporate businesses to order directly from takeout restaurants in the United States and London. The company's brands include GrubHub, Seamless, MenuPages and Allmenus. GrubHub was founded on August 8, 2013 and is headquartered in Chicago, IL.

Publicly traded companies mentioned herein: GrubHub Inc (GRUB), Amazon (AMZN), Just Eat (JE LN) and McDonald’s (MCD).

Highlights

As the largest player in the rapidly growing web-enabled restaurant delivery space, the presenter believes shares of GrubHub continue to offer meaningful upside potential following the stock’s recent run off its January lows. Further, he believes downside could be limited to about $23-$25 per share based on the value of the company’s profitable NYC and Chicago markets alone, making for a compelling risk/reward scenario. Investor fear of a competitive onslaught following Amazon’s (AMZN) Prime Now and Uber Eats’ entry into the NYC market increasingly appear overblown, while GRUB’s massive scale is continuing to differentiate it from the competition. Further, GrubHub’s ongoing transition from mere marketplace to a bona fide full-service logistics and delivery provider should strongly position the company going forward. 

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Idea Discussion

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