Food Delivery Giant Meituan’s Sales Beat Estimates
- Food delivery, groceries were bright spots in the June quarter
- Meituan joins tech giants in signaling post-Covid rebound
Food delivery couriers for Meituan Dianping in the Humen area of Dongguan, Guangdong Province, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Meituan Dianping shares surged the most in five months after reporting quarterly revenue that beat estimates, as demand for takeout services bounced back from disruptions caused by the pandemic in China.
The world’s largest meal delivery service reported sales climbed a better-than-expected 8.9% to 24.7 billion yuan ($3.6 billion) in the June quarter. It also reported a surprise net income of 2.2 billion yuan, helped by tax returns and preference gains. Its stock gained as much as 11% Monday, the biggest intraday gain since March, after brokerages including Morgan Stanley and Citigroup lifted their recommendations or price targets.