GrubHub Inc. (GRUB) Promotional Pricing Pressure is Unlikely to Abate Under the Just Eat Takeaway Transaction - Keybanc

KeyBanc analyst Edward Yruma reiterated a Sector Weight rating on GrubHub Inc. (NYSE: GRUB) on the belief that the proposed Just Eat Takeaway/Grubhub transaction likely ensures that the U.S. promotional environment will remain intense within food delivery. COVID-19 appears to have accelerated SMB adoption of both Uber Eats and DoorDash after most national chains opted for a multi-partner strategy. The pandemic encouraged SMB restaurants to activate all platforms, which has accelerated Eats and DoorDash penetration into the SMB space.

The analyst stated "The synergies (operational and revenue) are less apparent than with a Grubhub/Uber transaction. However, the transaction should not face antitrust issues, which would have been a formidable challenge with Grubhub/Uber. Grubhub shareholders would own approximately 30% of the combined group (0.6710 Just Eat shares for each Grubhub share, implied value of $75.15). The combined Just Eat/Takeaway.com is the market leader in 15 of the 23 countries it operates in, and is a strong number two in other markets".

For an analyst ratings summary and ratings history on GrubHub Inc. click here. For more ratings news on GrubHub Inc. click here.

Shares of GrubHub Inc. closed at $63.20 yesterday.

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