A global pandemic shifting an enormous portion of restaurant orders to off-premises channels hasn’t been enough to nudge Grubhub into profitability, as the Chicago-based company reported third-quarter results showing yet another jump in order volumes, but a wider loss than previously reported.
In the words of Kai Ryssdal, let’s do the numbers: Grubhub reported quarterly revenues of $494 million, which is a 53 percent year-over-year increase from the same period last year. Gross food sales grew 68 percent year-over-year to $2.4 billion, up from $1.4 billion in the same period last year. Even with those gains, the company reported a net loss of $9.2 million, which is a step down from its slim profit of $1 million in the third fiscal quarter of 2019.
Investors were largely unmoved by the results, with GRUB shares staying near the $75/share mark, which is a decline from its previous high of nearly $85/share in the middle of October. So far, Grubhub shares have increased by more than 50 percent during this pandemic-clouded year.
Additional metrics include 30 million active diners on the platform, a 41 percent year-over-year increase from 21.2 million active diners in the third quarter of 2019. Daily Average Grubs were 668,600 during the quarter, up 46 percent year-over-year.
In announcing the news, Grubhub founder and CEO Matt Maloney noted that the company has continued its restaurant relief efforts and added that shareholders of Just Eat Takeaway.com recently voted to approve its acquisition of Grubhub in the first half of 2021.
“Connecting restaurants and diners is more important than ever given the challenges our restaurant partners still face because of the pandemic. Since March, we have supported our restaurant partners with hundreds of millions of dollars through increased marketing support, reduced commissions, and bonuses and personal protective equipment for drivers,” Maloney said. “Earlier this month, the Just Eat Takeaway.com shareholders overwhelmingly voted in favor of the proposed acquisition of Grubhub, which is on track for completion in the first half of 2021.”