Just Eat Takeaway aims for a 40% EBITDA jump in 2024 after a $1.95B loss. Despite efforts, Grubhub challenges persist. The company bets on Northern Europe and tech for a turnaround.
Just Eat Takeaway, grappling with a hefty $1.95 billion loss in 2023, is setting its sights on profitability in 2024. Amidst the turmoil, their American offspring, Grubhub, continues to give them grey hairs. Despite the setback, Just Eat Takeaway's self-retention per order surged by 12%, thanks to streamlined processes and automation, leading to a gross profit leap from $20.5 million to $349.8 million. Looking ahead, they're betting on an EBITDA of $486.3 million, aiming for a nearly 40% uplift.
In the backdrop of a 4% dip in order value, Just Eat Takeaway has found solace in Northern Europe, including the UK and Ireland, hitting record sales in Q4. Their strategic alliances with giants like J Sainsbury and Domino's Pizza, alongside tech enhancements, are poised to sharpen their competitive edge. Yet, the shadow of Grubhub looms large, with its sale saga dragging on amidst stiff competition from Doordash and Uber Eats.
Despite matching market forecasts, Just Eat's shares took a 6% hit, hinting at investor anxieties, possibly over the anticipated end of their share buyback program. CEO Jitse Groen remains optimistic, citing efficiency gains and menu price adjustments as key drivers for their British and Irish markets' growth. However, the specter of customer churn in the face of rising living costs poses a relentless challenge.
With an eye on expansion and sustainability, Just Eat Takeaway is not just about delivering food anymore. They're venturing into groceries and retail, aiming to diversify their service offerings. As they navigate through the M&A maze in the US, the pursuit of profitability and market dominance continues, underscored by a commitment to greener deliveries and tech innovation.
❓ Will Just Eat overcome its Grubhub headache?
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