GrubHub skyrockets 18% on report that it might put itself up for sale
- GrubHub has hired financial advisers to mull its options amid increased competition in food delivery and the stock's recent losses, The Wall Street Journal reported Wednesday.
- Shares of GrubHub skyrocketed as much as 18% Wednesday.
- One of the options on the table includes a possible sale, according to the report.
- Watch GrubHub trade live on Markets Insider.
Shares of GrubHub surged as much as 18% Wednesday following a Wall Street Journal report that it's considering putting itself up for sale.
GrubHub is mulling its strategic options amid increasing competition in food delivery and its battered share price, according to the Wednesday report, which cited people familiar with the matter.
The company has hired financial advisers to help with potential moves that could also include an acquisition, according to The Journal. GrubHub has also asked the advisers for advice on what to do if an activist shareholder starts snapping up stock, according to the report.
The company's shares shed roughly 37% in 2019, fueled by a dismal third-quarter earnings report and fourth-quarter guidance that sent the stock price tumbling more than 40%. The stock has rebounded since the October rout, but not enough to recover all the lost ground.
GrubHub - which also owns Seamless, LevelUp, and AllMenus - blamed the earnings report and slowing growth on heightened competition from companies such as Uber Eats, DoorDash, and Postmates. If the company does decide to pursue a deal, it could attempt to team up with one of these rivals, The Journal reported.
GrubHub's review is still in an early stage, and there's a possibility that nothing will materialize from it, according to The Journal.
