Just Eat shares fall 7% as competitors up the pace

Food orders at Just Eat, the largest restaurant food delivery service in the UK, slowed at the back end of last year amid rising competition, causing shares to slide at a company known for its stellar growth rates.
Just Eat shares fall 7% as competitors up the pace

Like-for-like orders rose 36% in 2016, Just Eat said yesterday, less than the 38% gain reported by the company for the first nine months of the year.

The shares fell as much as 7% at one stage, the most in almost seven months. The firm is valued at €3.72bn (€4.31bn).

Growth is easing as the thriving UK food-delivery market becomes increasingly crowded.

Amazon.com extended its US restaurant delivery service to London in September, joining rivals Uber and Deliveroo. Just Eat is seeking to extend its business beyond the UK, acquiring businesses in Canada, Australia, and Mexico since 2015.

“No real knocks to the thesis,” David Reynolds, analyst at Jefferies, said in a note, “just a reality check as the guidance-upgrade conveyor belt comes to a stop.”

The company also highlighted full-year UK orders for the first time, which increased 31% over 2016.

David Buttress, chief executive officer at Just Eat, said the order growth “puts us in a strong position to deliver full-year results in line with our previous financial guidance.”

Including orders from Just Eat’s Mexican and Australian businesses, acquired in 2015, deliveries increased 42% over 2016, down from 57% for 2015.

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