48.11 0.00 (0.00%)
After hours: 5:18PM EST
|Bid||48.21 x 900|
|Ask||49.97 x 800|
|Day's Range||44.00 - 48.49|
|52 Week Range||32.11 - 83.11|
|Beta (5Y Monthly)||1.09|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 22, 2020 - Apr 26, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||52.24|
The gig economy continues to expand, and the transportation-based marketplace is adding innovative services. But KeyBanc’s eye is on some of the earliest movers. The Ratings KeyBanc analysts Edward Yruma ...
Food delivery company DoorDash confidentially filed to go public with the Securities and Exchange Commission, it announced Thursday. What Happened The company didn't reveal how many shares it will offer ...
In financial markets — as in the cut throat world of food delivery — timing is everything. Unfortunately for DoorDash, America’s leading online food ordering and delivery app, the moment has passed. The lossmaking SoftBank-backed start-up has filed confidential paperwork for an initial public offering.
(Bloomberg) -- In the suburbs of Dublin on a windy, overcast day in January, several alumni of Airbus and the U.K.’s Royal Air Force watched as a flying object, shaped a bit like a crouching frog, hovered about 10 meters (33 feet) up in the air.The craft, called MNA-1090, opened its cargo bay door, and lowered a package — about the size of a shoebox — to the ground on a string. The robotics engineers who’d helped design the vehicle opened the carton, looked inside, and smiled: the dozen-or-so pots of Ben & Jerry’s ice cream were still perfectly frozen.In late March, customers on the outskirts of Dublin, far from the dense metropolises that make services like Uber Eats and Deliveroo viable in terms of revenue, will get to try ordering food and drink the same way. Manna.aero built the MNA-1090 drone to be an airborne replacement for the human-and-bicycle formula used the world over by food-delivery apps, and is preparing to run a couple of hundred test flights per day over several weeks to lay the groundwork for a permanent service for small Irish towns. Ben & Jerry’s, U.K. food delivery firm Just Eat Plc, and local Irish restaurant chain Camile Thai are signed up to participate in the pilot that will take place at the University College Dublin campus.“In five years, it’s going to be the most normal thing you can imagine,” Manna Chief Executive Officer Bobby Healy says.If you live in a city, having a hot meal delivered to your doorstep in under an hour has never been easier or cheaper. For about the price of a small coffee, a human being will cycle to a restaurant, collect your freshly baked pizza and bring it to your apartment. Innovations in smartphones, mapping and gig-economy logistics have catalyzed growth of the sector, which research firm Frost & Sullivan estimates will be worth $200 billion by 2025.But the margins are tiny for the companies handling the delivery, and the competition fierce. In October, Grubhub Inc. executives told shareholders they didn’t believe it was even possible to generate significant profit from food delivery. The cost of paying people to drive food around was just too much, they said.Companies are looking for an alternative, and a roster of investors believe Healy might have a model that could work: a drones-as-a-service for restaurants and delivery apps.Here’s how Healy said it will work: Manna will partner with restaurants or food courts that have a high-throughput of orders and a small outdoor space to house a drone-loading team. The Manna craft itself is about the size of a computer printer and will carry meals weighing around 2 kilograms (4.4 pounds) more than 2 kilometers (1.2 miles) in under three minutes, even in wind and rain.Upon arriving at its destination, the drone will hover and wait for the customer to accept delivery using an app, having indicated when ordering exactly where they want their food to land — on the lawn, an outdoor dining table or just in the driveway. The drone will descend and lower the food parcel that, Healy said, will still be “piping hot.”Manna’s vehicle has been designed to travel for 100 million hours without a problem, Healy said in an interview. But, alongside space for three 10-inch pizzas, it also has a backup battery and two parachutes, just in case.The 51-year-old Irish entrepreneur is a mobility veteran: In 2003, he sold off travel software firm Eland Technologies to industry titan Sita.Aero. He then helped build CarTrawler into a transportation platform used by more than 100 international airlines. Healy’s got some well-known names putting $5.2 million behind Manna, including billionaire Peter Thiel’s Founders Fund, Dynamo venture capital, and FFVC, among others.For food platforms, Manna says the service is more than just a gimmick — it will lower delivery costs and allow them to scale to currently under-served suburban areas in a profitable way. Healy said Manna’s drone delivery will cost platforms $3 to $5 per delivery.Fabricio Bloisi, CEO of online delivery platform iFood in Brazil, said the use of drones is a “great breakthrough” for the industry because of their efficiency and ability to travel relatively large distances. He said his company’s working with Sao Paulo-based Speedbird to reduce delivery time by combining the use of drones with bicycles and motorbikes.Uber’s testing a drone for food delivery in the San Diego area, and Alphabet Inc.’s Wing is already delivering coffee, food, medicine and household items directly to homes in Finland, Australia and the U.S. state of Virginia.Amazon.com Inc.’s also developing its Prime Air service, with a view to delivering parcels, not necessarily food, of up to five pounds via drone. The company’s bidding for a stake in the U.K.’s Deliveroo.Healy isn’t worried. He’s pitching Manna as a business-to-business company, where its drones are used by food delivery companies, not end consumers. To the entrepreneur, Wing isn’t his rival. “We’re arming their competitors.”Still, not everyone is so rosy about the drone delivery trend. In a sign of how divided views are on the technology, Dutch food delivery firm Takeaway.com NV — which recently bought Just Eat, one of Manna’s partners for the March pilot — said it thinks drone delivery for food is a “fantasy.”“We just don’t see any way how it can work currently from a technical perspective,” said Joris Wilton, a spokesman for Takeaway. “We will not be investing in developing it in-house.”Miki Kuusi, co-founder and CEO of Helsinki-based food delivery company Wolt, said his company has tested drone deliveries, but, “it’s been more PR than actually about a business case.”That partly has to do with complexities around picking up the food orders, he said. Drone services have to be deeply integrated with the restaurants to ensure that drones are loaded in the right way, something “most restaurants in a hectic environment are not equipped to do.”Then there’s the tricky issue of regulation. Airspace authorities have tightened restrictions on drone usage as their popularity with consumers and troublemakers has grown. People also express discomfort at the idea of machinery whizzing above their homes — both for privacy and safety reasons. Add to that the complexity of hauling hot food in the sky over several kilometres and it’s an uphill battle for any startup to launch a service.Healy recognizes that changing the industry won’t come overnight, given the need to safely test the technology, get approvals from regulators at each new stage as well as from the local communities.Still, he expects to have completed between 20,0000 and 50,000 successful deliveries by year-end.“With this industry it’s ‘crawl, walk, run,’” Healy said, “and we want to crawl for a little while, we want everyone to feel good about it.” To contact the author of this story: Natalia Drozdiak in Brussels at firstname.lastname@example.orgTo contact the editor responsible for this story: Nate Lanxon at email@example.com, Amy ThomsonFor 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.
GrubHub Inc (NYSE: GRUB ) CEO Matt Maloney was a guest on CNBC Wednesday to talk about the COVID-19 virus outbreak, among other hot topics impacting the food delivery industry . Coronavirus A 'Scary Situation' ...
Grubhub, the nation's leading pickup and delivery marketplace with the largest restaurant network, today launched Grubhub+, a new membership program loaded with rewards (Seamless+ also available). Grubhub+ goes above and beyond other subscription programs with member benefits like 10% Cashback and donation matching to high impact organizations like No Kid Hungry.
Shake Shack Inc (NYSE: SHAK) reported fourth-quarter results that fell short of expectations. Shake Shack reported quarterly earnings of 6 cents per share, unchanged from the same period last year. Longbow Research analyst Alton Stump noted that comparable sales were down 3.6% in the quarter, which was worse than the 3% the research firm expected while EBITDA of $11.7 million also missed estimates of $14.2 million.
Shake Shack Inc. said adding Chick'n Bites, its version of chicken nuggets, to the core menu came with a headwind that eased at the back end of the year. In addition, it was the focus of the company's menu innovation for 2019, which Shake Shack says contributed to a traffic decline. Shake Shack shares are down 12.6% in Tuesday trading after it reported a fourth-quarter loss and sales miss. However, analysts are focused on the shift to a single delivery partner, Grubhub Inc. , which Shake Shack has said previously will cause "volatility." "The current disruption is weighing on the results, but the magnitude and duration of the pressure remains TBD," wrote MKM Partners in a note. MKM rates Shake Shack shares neutral with a $70 price target, up from $65. "Significant challenges remain as key markets, such as California, have yet to transition to GrubHub exclusivity, and we believe there is risk the company will struggle to alter consumer behavior away from regional favorites like Postmates and DoorDash," wrote Stifel analysts. Stifel rates Shake Shack stock hold with a $60 price target. And SunTrust Robinson Humphrey analysts are concerned about cannibalization as Shake Shack expands, a concern that has come up previously. SunTrust rates Shack Shack shares hold with a $71 price target, down from $79. Shake Shack stock has gained nearly 23% over the past year while the S&P 500 index is up 14.3% for the period.
(Bloomberg) -- Shake Shack Inc. shares plunged on Tuesday after the company posted worse-than-expected comparable sales and disappointing 2020 targets as growth in delivery slowed amid a shift to a sole partnership with Grubhub Inc.“Results and guidance reinforced our concerns around Shake Shack’s transition to a single delivery partner and increased cannibalization, which drove our recent downgrade,” SunTrust analyst Jake Bartlett wrote. The headwind from the delivery transition is likely “to get worse, before it gets better.” Other analysts remain cautious on the transition, as well.The company also blamed cannibalization for the sales shortfall. Bartlett noted that the issue has been a concern for investors for a few years now, and he anticipates that it will remain a focus.Shares tumbled as much as 17% to $61.15, the biggest intraday decline since Nov. 5. Shares had been up 24% so far this year, following the 31% advance for all of 2019.Here’s more of Wall Street analysts had to say following the report.SunTrust, Jake BartlettWith roughly 50% of the system recently solely integrated with Grubhub vs. 25% at the end of 2019, the analyst expects delivery sales to actually decline as Shack loses customers loyal to its prior partners.“For instance, we found that at the end of January, DoorDash (private) stopped offering access to Shack Shack in Boston, Chicago and DC, all markets that have been recently integrated solely with Grubhub. Of course, we see the greatest risk to sales when SHAK solely integrates with Grubhub in NYC and loses DoorDash sales.”Along with a shorter holiday season, adverse weather, less menu innovation and less of a lift from delivery, management said sales were also hurt by cannibalization from rapid development. This has “long been a topic” among Shake Shack investors -- it contributed to negative comps. in 2017.“Cannibalization will likely remain a focus as delivery sales slow or decline, and SHAK increasingly focuses on infilling markets.”Rates hold, price target to $71 from $79.Wedbush, Nick SetyanThe 2020 comp guidance is predicated on a second-half inflection after the Grub-transition, but the exact timing of the completion of the switch remains an unknown.Setyan believes negative same-store sales guidance (down low single-digits) is “prudent” due to limited visibility around the ongoing transition to an exclusive Grubhub delivery partnership.Restaurant-level margins were a positive surprise in the fourth-quarter, but could prove “optimistic” given the “absence of a stabilization” in second-half comparable sales growth and relatively tame food costs.Rates neutral, price target $75.Morgan Stanley, John Glass“With materially weaker traffic, fourth quarter missed our below-Street comp. expectations and guidance for 2020 suggests to us the start of the year could be similar or modestly worse.”A more gradual transition to Grubhub as a sole delivery partner is the primary reason for the shortfall in the quarter, though weather compares, a shorter holiday season, and potentially cannibalization in in-fill markets were also contributors.“In 2020, add to this the potential impact on licensing revenue from coronavirus.”Bulls waiting for faster earnings growth will have to “remain patient” in 2020.Rates equal-weight, price target to $62 from $63.Raymond James, Brian Vaccaro“We expect weak comp trends seen in 4Q to continue over the next few quarters as the company transitions to Grubhub as its sole delivery partner.”’Management guidance for “stable” store margins in 2020 looks “aggressive in light of negative first-half comps. and continued labor pressures, though lower delivery fees and extra week benefit will help.”Rates underperform.(Updates first and fourth graphs and chart to reflect regular trading)To contact the reporter on this story: Janet Freund in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Will DaleyFor 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.
Shake Shack Inc expects its delivery sales to be volatile throughout 2020 after its move last year to an exclusive partnership with third-party platform Grubhub Inc , it said on Monday. The New York City-based fast-casual chain expects "potentially significant volatility in the delivery channel throughout much of 2020," Chief Financial Officer Tara Comonte said during an earnings call on Monday. Shake Shack shares were down more than 12% in after-market trading on disappointing results, with revenues this year forecast between $712 million and $720 million, well below average analyst estimates.
Shake Shack Inc (NYSE: SHAK ) missed analysts' revenue expectations amid a year-over-year drop in comparable store sales in the fourth quarter, sending the burger chain's share price down in after-hours ...
Shake Shack earnings are due late Monday, amid concerns about efforts to streamline its delivery business. Shares are well off its late 2019 peak.
Shake Shack Inc. was downgraded to hold from buy at SunTrust Robinson Humphrey on 2020 guidance fears when the burger chain announces fourth-quarter earnings on Monday. Analysts lowered their price target to $79 from $82. SunTrust says these near- and medium-term concerns could have an impact on same-store sales. The FactSet forecast for fiscal 2020 same-store sales growth is 0.7%. "As Shake Shack transitions to a single delivery partner and focuses on in-filling markets, visibility on positive same-store sales is unusually low," analysts led by Jake Bartlett wrote. Analysts think the move to GrubHub Inc. could come with "deeper and longer" sales risk. And as new Shacks are opened, there's cannibalization risk. Despite the downgrade, analysts still think Shake Shack is one of the strongest growth stories in restaurants, as menu innovation and recent same-store sales growth could offset the aforementioned pressures. Shake Shack stock is down 1.5% in Friday premarket trading, but up 44.8% over the last year. The S&P 500 index has gained 21.6% for the past 12 months.
Food delivery companies DoorDash, Postmates and Uber Technologies Inc (NYSE: UBER) all held some form of merger discussion in 2019, according to The Wall Street Journal's sources. Postmates privately filed to become a public company in 2019, but delayed its IPO in October after looking at Uber's rough IPO debut and WeWork's failed public offering.
Moore Kuehn, PLLC, a securities law firm located on Wall Street in downtown New York City, is investigating potential claims involving directors and officers regarding possible breaches of fiduciary duties and other violations of law related to whether insiders, as alleged in federal securities lawsuits, caused their companies to make false and/or misleading statements and/or failed to disclose, among other things, that:
SAN DIEGO, CA / ACCESSWIRE / February 11, 2020 / The Shareholders Foundation, Inc. announces that a lawsuit was filed for certain investors in Merit Grubhub Inc. (NYSE:GRUB) shares. Investors, who purchased ...
The retail apocalypse has hollowed out malls across the U.S. And the downward trend has spurred a phenomenon, dubbed “ghost kitchens."