GrubHub Inc. (GRUB) Thoughts Post Company Update - Needham

Needham & Company analyst Brad Erickson reiterated a Hold rating on GrubHub Inc. (NYSE: GRUB) after the company provided an update that reflected a stronger Non-NYC delivery business compared to pre-COVID but also highighted a softer NYC which, under normal circumstances, has stronger than an average gross food sales and profitability due to higher non-delivery mix.

The analyst stated "Q1 ended up above the mid-point of management's guidance which was driven by the first 10 weeks running above plan partially offset by late-quarter weakness. Daily-average-grubs (DAG's) came out flat versus up single digit commentary indicating take rate upside (likely due to delivery mix shift away from NYC). Further, Q2 DAG's are tracking up 10% which is ahead of where we had modeled. Negatively, GRUB's disproportionate NYC exposure has been a meaningful headwind with corporate orders having largely vanished and consumer demand having slowed meaningfully".

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 $39.99 yesterday.

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