GrubHub's Rally Sparks Caution
- Stock has soared past all but loftiest targets after Yum deal
- Analysts warn expansion plans may pressure near-term earnings
The GrubHub Inc. website.
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GrubHub Inc. shareholders hungry for a quick payout may be biting off more than they can chew.
The stock has soared 59 percent since GrubHub agreed to a delivery and orders partnership with Yum! Brands Inc. last month. During their dizzying ascent, the shares have blown past all but the loftiest of price targets set by analysts. The stock now trades 17 percent above the average target, among the biggest premiums in the Russell 2000 Index.