Just Eat Takeaway faces pressure from top shareholders

On Thursday, December 19, 2019, employees cook pizza next to a Just Eat Plc branded delivery bag in the kitchen of The Fat Pizza Takeout Pizza Restaurant in Southend-on-Sea, England.

Chris Ratcliff | Bloomberg via Getty Images

London- Just eat Is one of Europe’s largest food delivery companies with a market value of $ 17.8 billion. However, one shareholder believes that Grubhub owners should be more valuable.

“JET’s terribly flawed communications have become the worst performing online food delivery stock in the last two years, despite its strong operational track record,” Catlock Capital said on Tuesday. The company holds a 4.2% stake in Just Eat Takeout.

Amsterdam-listed JET shares have fallen by about 22% this year, their German rival. Delivery hero It is down about 2%.

Catlock Capital said JET’s earnings multiples are weaker than its competitors.said Door dashSales are expected to be on par with JET this year, more than four times more valuable than in Europe.

JET was founded last year as a result of the merger of Just Eat in the UK and, a Dutch operator. The integrated online take-out app then acquired US-based Grubhub, defeating rival bids. Uber..

Catlock Capital said JET itself is vulnerable to acquisitions from competitors and will not be a favorable price.

Captain Alex, founder and managing partner of Catlock Capital, said:

“But since the IPO, JET has been unable to improve communication with investors and markets, is highly undervalued and remains vulnerable to takeover bids well below its intrinsic value.”

The investment company had a problem with JET CEO Jitse Groen sparring with Uber boss Dara Khosrowshahi on Twitter. Groen has accused Khosrowshahi of trying to “push down” its share price by announcing the expansion of its Uber’s Eats delivery business in JET’s main market, Berlin.

According to Catlock Capital, JET needs to seek a “strategic combination” with its rivals to strengthen its performance.

Shares rose more than 2% on Tuesday, despite most European markets declining after Catlock Capital’s comments were announced. Greenwich, a Connecticut-based investment company, is JET’s fifth-largest shareholder, according to Refinitiv data.

“Just Eat has regular dialogue with all shareholders and we take all their views very seriously,” a JET spokeswoman told CNBC.

“We will hold Capital Markets Day in October to provide the market with visibility into how we will take advantage of the exciting and long-term growth opportunities we have throughout our business. . “

Just Eat Takeaway faces pressure from top shareholders

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