Cat Rock Capital Management has slammed Just Eat’s (LON:JE) management, urging the British takeaway group to sell its ‘non-core’ businesses and align executive pay to financial targets, Reuters has reported. The news comes after the company recently lost its spot in the benchmark FTSE 100 index.
Just Eat’s share price fell in the previous session, giving up 0.47 percent to close at 6,845.17p, in line with the FTSE 100 which shed 32.33 points to end trading 0.47 percent lower at 6,845.17. The group’s shares have lost more than a quarter of their value over the past year, as compared with about an eight-percent drop in the Footsie.
JE shareholder calls for asset sale
Reuters reported this morning that Cat Rock Capital Management, which owns about two percent of Just Eat shares, had said that the group should present a three-year financial plan before its shareholder meeting in May and consider selling its stake in online food delivery platform iFood. The investor argued that the sale could fetch the company £650 million.
“We are concerned that the slow pace of planning and decision-making at Just Eat will not only continue to destroy shareholder value but will also result in competitors eroding Just Eat’s leading market position,” Cat Rock pointed out, as quoted by the newswire.
Analysts on online takeaway service
Credit Suisse reaffirmed Just Eat as an ‘outperform’ last week, without specifying a price target on the shares. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 859.18p.
Earlier this month, Barclays lowered its price target on the group, arguing that continued investment in logistics might limit earnings growth over the next couple of years.