Just Eat Takeaway is under pressure from a major shareholder

A employee makes a pizza next to a Just Eat Plc-branded delivery bag in the kitchen of La Pizza Grassa takeaway pizza restaurant in Southend-on-Sea, United Kingdom, on Thursday 19 December 2019.

Chris Ratcliffe | Bloomberg via .

LONDON – Just Eat Takeaway.com is one of The largest food delivery companies in Europe, with a market value of $ 17.8 billion. But one the shareholder thinks so should to be worth Very more.

“JET’s deeply flawed communication has made it’s the worst online food delivery stock over the past two years despite strong operations performance, “Cat Rock Capital, which holds a 4.2% stake in Eat takeaway only, he said on Tuesday.

Listed in Amsterdam Amsterdam shares of JET are down about 22% from start of the year. German rival Delivery Hero fell by around 2% year-to date.

Cat Rock Capital said JET’s revenue multiple was weaker than that of competitors. DoorDash, which should generate a similar amount of sales to JET, it is worth more of four times as much as its European counterpart, the company said.

JET was formed last year as a result of a merger between the British Just Eat and the Dutch operator Takeaway.com. The combined online the takeaway app subsequently went on to acquire US firm Grubhub, beating Uber’s rival takeover bid.

Cat Rock Capital said JET itself was vulnerable to a competitor takeover and would not have been in favor price.

“Just Eat Takeaway.com is great business with # 1 positions in lot of of the world is more valuable online food delivery markets and a long track for growth”said Alex Captain, founder and managing partner of Capital of cat rock.

“However, JET has failed to update your communications with investors and markets from the IPO, leaving it deeply undervalued and vulnerable to distance takeover bids below intrinsic value. “

The investment firm took issue with JET CEO Jitse Groen sparring with Uber boss Dara Khosrowshahi on Twitter. Groen accused Khosrowshahi of trying to “depress” his company share price announcing an expansion of Uber’s Eats delivery business in Berlin, a major market for JET.

JET should explore “strategic combinations” with rivals to strengthen the company performanceCat Rock Capital said.

The title has risen more 2% on Tuesday, although most European markets fell following the release of Comments from Cat Rock Capital. The Greenwich, Connecticut-based investment firm is the fifth largest shareholder in JET, according to data from Refinitiv.

“Just Eat Takeaway.com has a regular dialogue with all its shareholders and we take all their views very seriously, “a spokesperson for JET told CNBC.

“We will host a day on the capital markets in October to provide the market with greater visibility on how we will put in uppercase on the exciting, lungoterm growth opportunities we have in all of ours business. “

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