Just Eat expects £200 million in annual earnings in 2019 in line with its previous estimate

Just Eat expects £200 million in annual earnings in 2019 in line with its previous estimate
Written by:
Michael Harris
March 11, 2020
  • Just Eat expects £200 million in annual earnings in 2019 in line with its previous estimate.
  • Just Eat partnered with McDonald's in the United Kingdom and Ireland as its second delivery service.
  • Takeaway.com is expected to acquire Just Eat with a £6.2 billion (all-share) offer.
  • The acquisition deal is currently being probed by the UK competition authority.
  • Just Eat expects an annual revenue of around £1.0 billion in 2019.

Just Eat has remained in the business news in the past few months with a potential merger with Takeaway.com that is expected to be established the largest food delivery service in the world. In a recent development, the company announced on Tuesday that its annual earnings for 2019 are expected around £200 million. In previous guidance, Just Eat had forecast £185-205 million for core earnings in 2019.

The company also declared its recently finalized partnership with McDonald’s in the United Kingdom and Ireland. Just Eat is now likely to be the second deliverer for McDonald’s, the other one being Uber Eats.

Takeaway.com To Acquire Just Eat For £6.2 Billion

Headquartered in the Netherlands, Takeaway.com is looking forward to acquiring Just Eat with its lucrative £6.2 billion (all-share) offer. Following the acquisition, Takeaway/JustEat will be the largest food delivery service across the globe. As of Friday, however, UK’s regulatory body has announced its plans of probing the deal. Takeaway.com, on the other, is confident that the deal will be finalized and the probe will only cause a minor delay till the end of the current week.

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Britain is currently the largest market for Just Eat. As per the sources, the company saw an 8% increase in orders in its favorite region. The growth, however, was reported as significantly lower than the 17% that it posted in 2018. Nonetheless, Just Eat expressed excitement in the fact that orders are quickly catching momentum in a wide range of other markets as well including Italy, Australia, and Switzerland.

According to Just Eat’s previous guidance, the annual revenue for 2019 was expected around £1.0 billion to £1.1 billion. The company firmly stands its ground and is still anticipating the same £1.0 billion in annual revenue for 2019.

Just Eat Saw An Over 40% Growth In The Stock Market In 2019

Following Just Eat’s estimates for earnings and revenue in 2019, the stock was seen trading around 1% higher in early trade. Currently exchanging hands at 853 GBX, however, Just Eat has performed flat on average in January. During the second week of this month, share prices noted a monthly-high of 901 GBX. In all of 2019, the stock recorded an around 40% growth. Just Eat was trading around 590 GBX at the start of 2019 while it closed the year at a much higher 834 GBX.