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Just Eat share price surges as group delivers Q3 revenue growth

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Shares in Just Eat (LON:JE) have climbed higher in London this morning, outperforming the broader market, as the blue-chip group posted higher revenues for the third quarter of the year. The blue-chip group now expects its full-year revenues to come in toward the top end of its guidance, while earnings are likely to be toward the lower end of the range.

As of 10:30 GMT, Just Eat’s share price had added 3.82 percent to 630.80p. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.24 percent higher at 7,145.17 points.

Just Eat posts Q3 results

Just Eat announced in a statement today that its revenue had grown 41 percent to £195.3 million in the third quarter of the year, while the group’s orders had increased 27 percent to  54.7 million with more than 57 percent of orders being made by app.

“The Group has delivered another strong quarter as we helped our 97,000+ restaurant partners serve over 54 million takeaways to millions of hungry customers,” Just Eat’s chief executive Peter Plumb commented in the statement, adding that the group’s delivery expansion plans were on track.

For the full year, the company now expects to deliver revenues toward the top end of its range of between £740 million and £770 million. The group’s underlying EBITDA, however, are likely to be towards the lower end of the guidance of between £165 million and £185 million.

Analysts weigh in on group

Reuters reports that analysts had said that they backed the group’s strategy to keep investing as the market develops rapidly around the world.

“To us, that is exactly the right approach,” Liberum pointed out, as quoted by the newswire. “While Just Eat is the market leader in nearly all the markets in which it operates, the food delivery market has not fully transformed yet from phone to online and so the emphasis should be on growing share and growth generally.”

As of 10:38 GMT, Thursday, 01 November, Just Eat PLC share price is 636.60p.

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