Here’s What Drove GrubHub Stock Higher Last Week
GrubHub stock rose 21% last week
GrubHub (GRUB) stock rose 21% in the week ended February 9, 2018, to close at $85.54. GrubHub is now trading 164% above its 52-week low of $32.43 and 10% below its 52-week high of $94.89. The stock rose 91% in 2017 and has generated returns of 124% in the trailing 12-month period.
The stock rose last week after the company announced its 4Q17 results. It reported revenue of $205.1 million, which was above analysts’ estimate of $201.7 million. Its non-GAAP (generally accepted accounting principles) EPS (earnings per share) was $0.37 compared to analysts’ estimate of $0.31. Revenue rose 49% YoY (year-over-year), while EPS rose 61%, driven by GrubHub’s acquisition of Eat24 from Yelp (YELP). Active diners at the end of 4Q17 rose 77% to 14.5 million.
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GrubHub has doubled its participating restaurants to 80,000 over the last 24 months.
Partnership with Yum Brands
GrubHub announced that it has partnered with Yum Brands (YUM). According to the partnership, YUM will invest $200 million in GrubHub, which will be its exclusive online ordering partner.
GrubHub expects its revenue to rise 38% YoY to $910 million–$960 million in fiscal 2018. Its revenue is estimated to rise 46% to $224 million–$232 million in fiscal 1Q18.