|Bid||58.09 x 1000|
|Ask||58.60 x 1300|
|Day's Range||57.74 - 59.40|
|52 Week Range||32.11 - 87.98|
|Beta (5Y Monthly)||1.23|
|PE Ratio (TTM)||1,362.09|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
GrubHub announced the launch of a new hardware and software solution platform called Ultimate technology. Instead of needlessly waiting in line to place an order and then waiting even longer for the food to be made, a Grubhub user can pre-order their food for pickup from the app.
Shares of the food delivery company have rebounded in the last month but will need to contend with overhead chart resistance moving forward.
Grubhub Inc. announced Thursday that it has launched technology called Ultimate that brings the meal ordering system to one comprehensive channel. The new system will give restaurants of every size digital pickup capability, give order status updates, and more. Grubhub also sees opportunity at stadiums and other event venues where long lines for food and drink are common. Order pickup is a $250 billion U.S. business, according to data provided by Grubhub. The Ultimate technology rollout starts in New York City and Chicago at 100 locations. Late last year, Grubhub announced that it would focus the coming months on efforts to create customer loyalty and build business with small- and medium-sized companies. Grubhub stock is up 2.1% in Thursday trading, but down 22.7% over the last year. The S&P 500 index is up 25.7% for the past 12 months.
Uber Technologies is a global company that is transforming the ride-sharing and meal delivery markets. After a much-hyped debut on May 10, Uber stock is one of the most watched IPO stocks today, but is Uber a buy right now in the current stock market? Uber is in the midst of a dramatic turnaround, as the company fights to turn a profit.
When you invest in growth stocks, first learn to use IBD's relative strength line to confirm a stock's real power as it breaks out of any base.
In late 2019, shares of premium fast casual restaurant chain Shake Shack (NYSE:SHAK) plummeted on the heels of a disappointing third-quarter earnings report that included the company's slowest comparable sales growth rate in a year, significant margin compression and a reduced full-year comparable sales and margin guide. SHAK stock, which was flying high around $105 just a few weeks earlier, crashed to $55 a few weeks after the print.Source: JHENG YAO / Shutterstock.com Then, this year, Goldman Sachs turned bullish.Following an investor presentation from management, the analyst team at Goldman Sachs recently released a hugely bullish report on Shake Shack with a simple yet compelling thesis that went something like this:InvestorPlace - Stock Market News, Stock Advice & Trading TipsShake Shack reported bad third-quarter numbers because of delivery headwinds related to the company moving from multiple delivery platforms to just one -- GrubHub (NYSE:GRUB). Over the next quarter and into next year, those delivery headwinds will turn into tailwinds driven by marketing synergies with GrubHub, while menu innovation and international expansion tailwinds kick in. As that happens, the numbers will improve and Shake Shack's stock will bounce back. * The 10 Best Value Stocks to Own in 2020 The market liked the sound of that. In response to the GS report, SHAK stock popped more than 10%. But I'm wary of this rebound.For one, there are bigger headwinds here than the delivery platform transition alone. I don't see those headwinds going away any time soon. And SHAK stock is still very richly valued. Ultimately, this combination of persistent headwinds and a full valuation could limit further upside in shares. Shake Shack Has Some ProblemsBulls want to blame Shake Shack's bad third-quarter performance -- 2% comparable sales growth (the worst in a year), 1.3% two-year-stack comparable sales growth (also the worst in a year), a nearly 300 basis point drop in restaurant-level operating margins (continuing a multi-quarter trend of huge margin compression), and a reduced full-year comps and margin guide -- on the fact that Shake Shack went from multiple delivery platforms to one delivery platform in the quarter.But does one small change really impact all of those financials that much?No. There are some much larger and longer-running headwinds at play here.First, new Shake Shack stores aren't performing up to par. Average weekly sales and average unit volumes have been in decline since 2015, and that decline isn't moderating. It's getting worse, because the more Shake Shack grows outside of its core high-income, urban-centric markets, the less well their stores perform on average. No matter how many new chicken options the company adds to the menu, this dynamic won't change, because it's built into Shake Shack's business model of high prices and small portions.Second, persistent cost pressures -- including rising wages, higher delivery packaging costs and food inflation -- are weighing on margins. These pressures aren't going anywhere. The labor market is full, so wages will keep rising. Delivery is the future of fast-food distribution, so those costs are sticking around. Food inflation will keep running higher as demand grows with strong economic activity.Third, the company is sticking to a cadence of roughly 40 new company-owned stores per year. That's a problem, because the store base is growing, but the number of new stores being added is not. So the unit growth rate is slowing, which is creating a natural drag on revenue growth rates. Shake Shack Stock Is Priced Too RichlyAll things considered, Shake Shack's numbers likely won't bounce back in 2020. If they don't, SHAK stock won't bounce back, either, because even after the selloff, shares remain very richly valued.The average restaurant stock trades around 26-times forward earnings. Shake Shack stock trades at 115-times forward earnings. Bulls will argue that Shake Shack only has 151 locations in America, versus 14,000 for McDonald's (NYSE:MCD), so SHAK stock deserves its premium valuation because of its huge long-term growth potential.Fair enough on the face of it. But let's play that scenario out.Shake Shack will never be as big as McDonald's. McDonald's caters to the entire income spectrum; Shake Shack's customers are in the $100,000 and up income bracket. Only 30% of American households belong in that bracket, and far less at a global level. But to be aggressive, let's assume that in a best-case scenario, Shake Shack can one day be 30% the size of McDonald's.McDonald's is a $160 billion company. The 100th McDonald's store opened in 1959, so to go from 100 stores to where they are today, it took McDonald's 61 years. Again being aggressive, let's say Shake Shack can go from its 100th company-owned store (opened in 2Q18) to 30% of McDonald's size in about 30 to 35 years, implying a roughly $50 billion market cap for Shake Shack by around 2051.Now let's discount that market cap target back by 10% per year. That equates to a $2.6 billion market cap today.Shake Shack's market cap as of this writing is over $2.6 billion. Even if you assume that Shake Shacks gets to 30% the size of McDonald's globally within 30 to 35 years (which, to my mind, is a best-case scenario), then SHAK stock today still isn't undervalued. Bottom Line on SHAK StockBulls would have you believe that Shake Shack's bad third-quarter numbers were the result of near-term delivery headwinds that won't persist for much longer. I don't buy that. There are much larger- and longer-running headwinds at play that will continue to adversely impact Shake Shack's growth trajectory for the foreseeable future.SHAK stock, at a triple-digit forward earnings multiple, isn't priced for this. As such, I'd be wary of buying into a SHAK stock bounce.As of this writing, Luke Lango did not own a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Monthly Dividend Stocks to Buy to Pay the Bills * 7 Earnings Reports to Watch Next Week * 7 5G Stocks to Connect Your Portfolio To The post Will Shake Shack Stock Really Roar Back Above $100? appeared first on InvestorPlace.
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Grubhub, in partnership with Lettuce Entertain You, has launched its third virtual restaurant, a kitchen-only concept that allows patrons to order food for delivery.
Shake Shack kicked off a delivery partnership with GrubHub Inc (NYSE: GRUB) in mid-November before switching to an exclusive partnership, Fogertey said in a Tuesday note. During Shake Shack's presentation at the conference, execs said the company recently completed the point-of-sale integration of GrubHub, but so far only 40% of Shake Shack locations have migrated to GrubHub as their sole delivery provider, the analyst said.
In fact, a large study of more than 11,000 people suggests an association between feeling burned out, and having an irregular heartbeat — which could lead to blood clots, stroke, heart attack and other potentially fatal cardiac complications. Researchers from the University of Southern California’s Keck School of Medicine wanted to see what effect chronic stress and exhaustion could have on developing atrial fibrillation, aka AFib or AF, which is a quivering or irregular heartbeat that is experienced by between 2.7 million and 6.1 million Americans. AFib was mentioned on 166,793 death certificates in 2017, according to the CDC, and was the underlying cause of death in 26,077 of those deaths.
(Bloomberg) -- Prosus NV hasn’t lost its appetite for food delivery, even after the e-commerce giant was defeated in a grueling $8 billion bidding war for U.K. firm Just Eat Plc.Takeaway.com NV last week declared victory in the battle for Just Eat, saying investors holding 80.4% of the shares had formally backed its all-stock bid and rejected a cash offer from Prosus. But the Naspers Ltd.- controlled company has alternative targets to pursue, according to head of ventures and food, Larry Illg.“We continue to look at lots of different options in this space,” Illg said in a phone interview.Prosus -- spun off by South African parent Naspers in September -- has targeted food delivery as a key market for investment as more people opt to order in meals rather than cook. The company also has stakes in Delivery Hero in Germany and India’s Swiggy alongside a controlling stake in iFood in Brazil.One option for further expansion could even see Amsterdam-based Prosus going back to the negotiating table with Takeaway, which is based in the same city. The new owner of Just Eat has said it will consider selling the British firm’s 33% stake in iFood, in which Prosus is the majority shareholder.Prosus would consider buying more of the Brazilian firm, though an additional investment would have to make financial sense and won’t be “something that we would do at all costs,” Illg said.“It’s strictly about the financials because it wouldn’t change anything about how we help manage the business,” he added.Illg’s comments come as food-delivery companies race to consolidate to withstand fierce competition from firms such as Uber Technologies Inc.’s Uber Eats and myriad other apps. Takeaway’s new combined company, listed in London, will become one of Europe’s largest food-delivery operations after the deal is completed.Grubhub Inc. last week said it “unequivocally” isn’t running a sale process, denying reports in The Wall Street Journal and New York Post that the U.S. firm is on the auction block. Meanwhile, Amazon.com Inc.’s attempt to purchase a minority stake in British food delivery startup Deliveroo has run into unexpected scrutiny from U.K. antitrust regulators who’ve opened an in-depth investigation into the deal.Asked about Grubhub or Deliveroo as possible investment targets, Illg declined to comment, but added Prosus isn’t fixated on pursuing deals in a specific location.“We’re not looking to color in white spaces on the map. It’s very opportunistic,” he said.To contact the reporter on this story: Natalia Drozdiak in Brussels at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, John BowkerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Iran Admits to Shooting Down Ukrainian Plane, UK Rep Detained In Tehran As Protests Worsen Persia is coming apart at the seams. In a surprising turn of events, Iran has admitted accidentally shooting down the Ukrainian Boeing (NYSE:BA) 737-800 last week leading to the death of 167 civilians, 82 Iranians among them. In addition to […]The post Market Morning: Iran Protests, Boeing Embarrasses Self, Australia Evacuates, GrubHub Rollup appeared first on Market Exclusive.
Stocks ended lower Friday, after the Dow hit 29,000 early in the session, with investor euphoria over recent record highs deflated by data showing slower-than-expected U.S. jobs and wage growth in December.
Grubhub stock dropped Friday after the provider of food delivery services denied reports it was exploring a possible sale. Reports also said Walmart and Kroger were potential acquirers.
Live coverage of the market's reaction to the December jobs number, an update on the potential sale of Grubhub and a disappointing announcement from Six Flags were a few of the topics covered on today's ...
Goldman Sachs is predicting that Shake Shack will rally 80% due to its new, exclusive deal with Grubhub. Yahoo Finance’s Seana Smith and Heidi Chung discuss on The Ticker.
Grubhub's stock is sinking after the food delivery company denied reports that it was looking to sell. Yahoo Finance’s Ines Ferre and Seana Smith discuss on The Ticker.
Kroger and Walmart have emerged as possible suitors for Grubhub but the food delivery start-up maintains it's not for sale. Yahoo Finance's Heidi Chung reports.