GrubHub shares jump after Citi upgrades to buy, citing delivery efficiency and partnerships

  • Citi gives five primary reasons for its upgrade, including GrubHub’s improvement in its delivery network “efficiencies” and possible partnerships.
  • “We recently came across data suggesting that GrubHub may be in early tests with McDonald’s, Starbucks and other large chains, which could drive investor interest,” Citi says.

Citi gave five primary reasons for its upgrade, including GrubHub’s improvement in its delivery network “efficiencies” and possible partnerships with large chains such as McDonald’sand Starbucks.

“We recently came across data suggesting that GrubHub may be in early tests with McDonald’s, Starbucks and other large chains, which could drive investor interest,” Citi said.

Additionally, despite “fierce” competition, Citi said “the online food delivery market’s growth remain robust and has even accelerated of late.”

more

Leave a comment

Your email address will not be published.