Just Eat soars to record high delivering upgraded outlook

 
Lynsey Barber
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JUST EAT Pilots Robots To Deliver Food From Restaurants
People still want takeaways after Brexit (Source: Getty)

Shares in takeaway firm Just Eat have soared to a record high after upping its outlook for the year.

The figures

Revenue for the first half the year to June was up 59 per cent to £171.6m as like-for-like orders surged 40 per cent.

Underliying earnings before interest, taxes, depreciation and amortisation more than doubled to £53.4m and orders in the period surpassed £1bn. Mobile orders accounted for 70 per cent of that.

The firm has upped its guidance for the full year by £10m to £368m based on exchange rates remaining as is. £7m is down to improved trade and £3m due to currencies.

Shares soared as much as seven per cent as markets opened.

Why it's interesting

This is the second upgrade for Just Eat this year and has doubled down on newer countries with tie ups in Italy, Spain, Mexico and Brazil, but the British appetite for a takeaway sees no signs of abaiting either.

After an impressive 2015, the firm has put a greater focus on customer experience and marketing (remember those song and dance ads?). It's pushed those boundaries by incorporating ordering into Apple TV and made headlines when it said it was trialling robot deliveries.

What Just Eat said

"Our determination to enhance the Just Eat service for both consumers and restaurants is paying off and gives us the confidence to increase our revenues and Ebitda guidance for the full year as we continue to lead the sector," said chief executive David Buttress.

"With regard to the impact of increased economic uncertainty in the UK, our experience in multiple countries suggests that our growth is typically unaffected as, in such an environment, overall consumer demand for online takeaway food continues."

What the analysts said

"Just Eat continues to exceed expectations, putting through yet another upgrade to management guidance in what looks a strong interim statement. Operational metrics were impressive," said Cannacord Genuity's David Amiras.

"We remain confident in its ability to deliver sector-leading earnings growth. In the UK, Brexit is likely to have minimal impact - takeaway is a resilient industry in economic downturns, and we suspect any Brexit-induced consumer weakness will have a negligible effect on Just Eat. In fact, it may lead better-off consumers to trade down and opt for takeaway rather than an out-of-home meal."

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