Just Eat falls as quarterly update fails to deliver for investors

The price of shares in online food delivery platform Just Eat (LON:JE.) has dropped by 5.76% to 589p (as of 14:15 BST) despite revenues for the third quarter growing by 25%. Management were happy with the performance and reconfirmed their full year guidance, which includes losses in Central America partially linked to recent acquisitions.

Interim CEO Peter Duffy commented: “We are seeing strong growth in many of our markets, including Canada, Europe and pleasingly Australia, where we are starting to reap the benefits of our turnaround plan. Our UK marketplace business is a strong and clear leader; however, we are seeing a structural shift, with increasing demand on our platform from customers for broader cuisine choice and more meal occasions, led by quick service restaurant chains. The strong growth in our UK delivery business shows that we can successfully meet these needs.

The winning platform for food delivery will offer customers the broadest range, underlining the importance of our move to the hybrid business model and continuing investments in key markets“.