Grubhub ‘unequivocally’ denies exploring sale
Grubhub Inc. said the food-delivery company isn’t for sale, pushing back against media reports that had sent its stock surging.
“We felt it was important to clarify that there is unequivocally no process in place to sell the company and there are currently no plans to do so,” a representative for the company said in a statement. “We have always consulted advisors about a broad range of issues, including potential acquisition opportunities -- that has not changed.”
Grubhub is confident in its growth strategy whether or not it makes acquisitions, the representative said.
The Wall Street Journal and New York Post reported Wednesday that Grubhub was considering a sale.
Shares of Chicago-based Grubhub fell 7.6% to $51.48 at 11:39 a.m. EST in New York trading Friday, giving the company a market value of about $4.8 billion.
Grubhub’s place in the food delivery market has fallen precipitously over the last year as upstarts spent aggressively to break in. Its stock, which nosedived after it published a dismal earnings forecast, remains down about 36% from a year ago.
Unlike many of its peers, Grubhub has been profitable. The company reported net income of $1 million on revenue of $322 million for the quarter ended Sept. 30. Analysts estimate it will have an adjusted loss of $3.7 million for the quarter ended Dec. 31, according to data compiled by Bloomberg.
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