The takeaway delivery giant revealed a 6% drop in total orders to 214.2 million in the first three months of 2024, marking a slight improvement on the 7% fall in the previous three months
Just Eat Takeaway.com has seen its shares take a hit as quarterly sales fell short of investor expectations, despite a strong showing in the UK.
The takeaway titan reported a 6% slump in total orders to 214.2 million for the first quarter of 2024. Although this indicates a slight recovery compared to the 7% dip in the previous three months, it was more severe than predicted, resulting in a 6% decrease in shares during Wednesday trading.
Despite the setback, the UK and Ireland remained healthy markets for the group, with order numbers bouncings back to a 1% growth rating at 60.3 million, following seven consecutive quarters in decline. Order numbers were squeezed as the takeaway demand drastically shrank since the peak of the pandemic.
In terms of gross transaction value (GTV) a crucial metric within the sector there was a 2% fall on a group-wide level. However, GTV sales using constant currency rose by 7% in the UK and Ireland and surged by 4% across Northern Europe, but were counterbalanced by a 13% decrease across Southern Europe, Australia and New Zealand, in addition to a 10% fall in North America.
Meanwhile, Just Eat is still mulling over plans to sell off Grubhub, its Chicago-based subsidiary. This move comes after activist investors placed pressure on the company to ditch Grubhub an American delivery firm acquired in 2021.
Just Eat also revealed on Monday that it plans to withdraw from New Zealand “in the coming weeks”. Jitse Groen, the chief executive, said: “Just Eat Takeaway.com started the year well, with the acceleration of GTV growth in UK and Ireland and our continued momentum in northern Europe in the first quarter of 2024.”
“We are excited that the investments in our business are paying off, and we are looking forward to the rest of the year.”
