Just Eat Takeaway reported its first-quarter orders below expectations on Wednesday, sending its shares down 5%.
Popular among investors during the pandemic, shares in delivery firms have moved off those highs in the past two years due to a rampant churn rate.
However, the meal delivery group has recouped some losses this year thanks in part to a rapid margin recovery on efficiency gains and cost savings.
It was also helped by a greater frequency of orders, helped by broader offerings that include grocery and retail.
‘Continues To Disappoint On Orders’
In the first quarter, Just Eat reported its total orders of 214.2 million were lower than the company-provided consensus of 217.1 million. Deutsche Bank quoted the higher number, with 220.2 million expected by the brokerage.
An analyst at Celement Genelot, Bryan Garnier, said in an email to Reuters, “Just Eat Takeaway continues to disappoint on orders, which becomes the name of the game in a disinflationary period.”
It posted a gross transaction value (GTV) of €6.55 billion for the first three months of 2024.
This matched analysts’ average estimate in a company-provided consensus, according to Deutsche Bank.
Regions
Its GTV grew by 11% in the UK and Ireland markets, and by 5% in Northern Europe.
This offset an 11% drop in North America and a 15% fall in Southern Europe and Australia, the company said.
Genelot said, “Half of the group’s business remains down in the double digits and affects the group’s growth/cash generation profile.”
Just Eat said its constant currency GTV growth excluding North America of 3% in the quarter was within the 2024 guidance range of 2% to 6% increase.
The group added that it was still exploring a full or partial sale of its struggling US unit Grubhub.
On Monday, Just Eat announced its exit from New Zealand.
Read More: Just Eat Takeaway To Exceed 2023 Core Profit Target
