After Grubhub delivered its earnings report, its stock skyrocketed 20 percent to set a new high for the company.
Grubhub shocked investors, beating expectations by large margins. Revenue rose by more than 50 percent quarter-over-quarter and profit rose by over 100 percent. Plus, Grubhub continues to make strategic moves – they are partnering with restaurants like Yum!, the owner of KFC, Taco Bell, and Pizza Hut. In fact, Yum! even purchased a stake in Grubhub.
The food delivery company also announced its acquisition of LevelUp for $390 on Wednesday. LevelUp will help them create digital payment services and develop other mobile technology programs.
Grubhub also told analysts that it will start to develop in smaller countries such as Santa Barbara and Spokane. Although these markets are not as big as New York or San Francisco, they have a lot of room for growth. If Grubhub can be the major player in those cities, then it can control the entire food delivery market.
In just over four years, Grubhub’s stock has risen almost 300 percent. If the company continues to make strategic deals like it did with LevelUp and Yum!, it will continue to beat out competitors like Uber Eats, DoorDash, and Postmates.
Featured image via Flickr/torbakhopper
