Lately, Grubhub (NYSE:GRUB) has been serving up nothing but indigestion to investors. Saying profit growth will slow considerably over the next year, the once-hot food delivery company has watched its stock price get sliced nearly in half since its peak last September.
The stock whipsawed in response to its fourth-quarter earnings report the first week of February. Management guided for an increase of just around 7% this year in adjusted EBITDA, its preferred bottom-line metric, forecasting a range of $235 million to $265 million.
Management also said it will continue to invest in marketing and opening new Grubhub Delivery markets, through which the company provides delivery service in addition to the ordering and payment platform, and it believes top-line growth will remain strong, projecting a revenue increase of 30.6% to 40.5% in 2019.