GrubHub, the online delivery service that will bring restaurant meals to your doorstep for a fee, was the hottest stock on Wall Street on Thursday (July 28) after the delivery company crushed its second quarter earnings report.
GrubHub, which serves more than 44,000 takeout restaurants in over 1,000 U.S. cities, also revealed that more people than ever before are using the service. For the quarter that closed June 30, GrubHub said that 24 percent more customers used its service, pushing it to 7.35 million food deliveries for the second quarter.
“In our strong second quarter, GrubHub continued to build the most comprehensive marketplace connecting restaurants and takeout diners. We posted record net revenues and our best order growth in a year,” Matt Maloney, GrubHub’s CEO, said in a statement announcing the earnings. “GrubHub also generated a record number of orders in Q2, despite typical seasonal headwinds, as total order growth accelerated to 23 percent year over year.”
GrubHub also upped its projected revenue in the third quarter of the year to $116 million–$119 million, up from the $113.9 million that analysts were forecasting.
All this good news literally made GrubHub the hottest stock on Wall Street on Thursday, with shares rising as much as 27.8 percent in early morning trading, making the stock the biggest gainer on the New York Stock Exchange on the day, according to Reuters.
All this good news seems to indicate that GrubHub is well-poised to fend off competition from imitators, like Amazon’s Prime Now delivery service and Uber’s attempt to get in on the same market with UberEATS.
If revenue and customers continue to rise, GrubHub’s third quarter earnings report should offer good insight into if the company is truly successful in fending off those challengers.