Just Eat Climbs as More Diners Sign Up for Online Takeaways

UK JUST EAT

Just Eat Plc rose in London after Britain’s biggest online food-delivery company lifted its full-year sales forecast as more diners and restaurants signed up to its takeaway service.

Sales during the first six months of the year rose 54 percent to 107.8 million pounds ($168 million), with like-for-like orders gaining 47 percent, it said in a statement Tuesday.

Some analysts have questioned whether Just Eat’s business model will be vulnerable to competition from larger established Internet delivery specialists such as Amazon.com Inc. The company’s first-half earnings excluding interest, taxation, depreciation, amortization and some other items was 25.8 million pounds, while its market value is 3 billion pounds.

However, analysts at Goldman Sachs Group Inc. wrote in a note Tuesday that “we continue to believe Just Eat will benefit as online penetration of takeaway food increases.”

The company, which moved into Australia in May by buying Menulog for about $690 million, said additional investments in Brazil and Mexico -- as well as further spending on technology and marketing -- will drive revenue to about 230 million pounds this year, with “over-performance” continuing in 2016. It had previously forecast sales “marginally” exceeding 200 million pounds.

The shares were 1.8 percent higher at 446.7 pence in London at 09:06 a.m.

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