Just Eat bags deal to deliver McDonald’s
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Just Eat today became the second UK delivery firm to partner with McDonald’s after signing a multi-million-pound deal with the fast food chain.
The delivery giant, which is set to enter a £6bn merger with Dutch firm Takeaway.com, said the partnership will hit the road later this year.
It comes as a blow to rival Uber Eats, who until now was locked in an exclusive delivery partnership with McDonalds in the UK and Ireland.
The deal is part of Just Eat’s pivot towards the higher end of the food market, having previously focused on independent takeaway operators.
Just Eat sales jumped eight per cent in 2019 after the firm secured partnerships with high-profile chains such as KFC and Burger King.
Last week the delivery titan pleased investors after bagging a nationwide delivery rollout with Greggs. The bakery firm is set to start deliveries with Just Eat in Bristol and Birmingham, before expanding across the country in cities such as Lonodon, Newcastle and Glasgow.
“We are delighted to announce that we have agreed to partner in the UK and Ireland with McDonald’s,” said Just Eat interim chief executive Peter Duffy.
“This partnership, along with our recently announced relationship with Greggs, will require significant investment but will accelerate our growth ambitions and enhance our market position by offering our customers the widest choice available.”
Just Eat predicts underlying earnings for 2019 to be around £200m, towards the upper end of its guidance of £185m to £205m. It expects group orders to be roughly £254m, and revenue to tip over the £1bn mark.
The McDonald’s partnership comes as welcome news to investors, after Just Eat’s proposed tie-up with Takeaway was unexpectedly called into question by regulators last week.
The Competition and Markets Authority (CMA) said it was looking into whether Takeaway.com would have re-entered the UK food market if it had not secured the deal with Just Eat.
Major shareholder Cat Rock said the CMA investigation into the proposed merger, which was just days before the finish line, was “shocking and clearly unwarranted”.
Shares rose just under two per cent to 872.2p at the bell.