Just Eat

Ticker JE.

Today's data summary

Market open
% change
+2.26%
Price Pence
714.80
Change
+15.80
As of 11:42 22 Feb 2019
Market cap. Pound sterling
4,868.39 million
As of 11:42 22 Feb 2019

Latest updates

Just Eat deal?

just eat driver
Getty Images

Cat Rock is keeping up its pressure on food delivery company Just Eat, after saying on 11 February it wanted the company to seek a merger with a rival.

The fund manager says it is "encouraged" to hear that other investors had also urged the board to consider a deal.

"Since we sent our open letter on 11 February, we have spoken with many Just Eat shareholders and have been pleased to see strong support for our proposals," said Alex Captain, founder of Cat Rock.

More on Just Eat

Just eat logo on a phone
Getty Images

More on the investor - Cat Rock - pushing for change at Just Eat.

In its letter to the food delivery company it says it suggested "two highly qualified" potential chief executives to replace Peter Plumb.

They were "candidates with extensive online food delivery experience and recommended that the board consult with a highly experienced industry veteran on the search process. We also offered to meet the board in London in February to discuss the chief executive search".

"The board did not even bother to contact one of the two candidates who we had said needed to be contacted quickly and therefore lost the ability to consider him for the role".

It is the third letter the US hedge fund has published about Just Eat since December.

Just Eat 'should merge'

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Getty Images

Cat Rock Capital Management, which already owns 1.7% of Just East's shares, is urging the company to start merger discussions.

This would be better than looking for a new chief executive to replace Peter Plumb, Cat Rock said, saying it should merge with a "well-run industry peer".

Just Eat acquires restaurant software platform

Barclaycard trialed Flyt's technology at restaurants in February 2018
BBC

Takeaway food delivery app Just Eat has acquired Flyt, a software platform for restaurants that integrates restaurant ordering and point-of-sale processes with delivery services, for £22m.

Flyt's technology is used by over 3,000 restaurants, including brands like KFC, Pizza Express, Nando's, Tim Hortons, Bookatable and Mitchells and Butlers, as well as payment providers like Visa, Barclaycard and Verifone (see BBC's coverage of a Barclaycard trial of Flyt's technology here).

Just Eat, which also uses Flyt, said that the technology firm will continue to operate as a standalone brand and platform.

"We’ve admired Flyt for some time and are hugely impressed by their technology - integration between Just Eat and our restaurant partners is a critical component to providing world class food delivery services," said Just Eat's interim chief executive Peter Duffy.

All change at Just Eat

Just Eat delivery driver
Getty Images

Some more executive changes to report.

Peter Plumb is stepping down as chief executive of takeaway food firm Just Eat.

Chief customer officer Peter Duffy is to act as interim boss, with the search for a permanent replacement to "begin immediately".

In December the management of Just Eat was slammed by US investor Cat Rock Capital Management, which holds 2% in the food delivery firm.

Just Eat was featured as part of a recent BBC Panorama documentary.

Just Eat bosses slammed by investor

Just Eat delivery rider
Getty Images

The management of Just Eat has been slammed by US investor Cat Rock Capital Management, which holds 2% in the food delivery firm.

“We are concerned that the slow pace of planning and decision-making at Just Eat will not only continue to destroy shareholder value but will also result in competitors eroding Just Eat’s leading market position,” Cat Rock said.

It said the company should present a three-year financial plan before its shareholder meeting in May and consider selling its stake in online food delivery platform iFood.

Just Eat has grown quickly since floating in 2014 but its shares have slid more than 25% this year amid repeated warnings that its expenses would increase.

Battle royale brewing for Just Eat

Just Eat bike
Getty Images

Just Eat shares are up after the takeaway business reported strong sales.

Steve Clayton, who manages the Hargreaves Lansdown Select UK Growth Shares fund, which has a position in Just Eat, says customers love what Just Eat does but it faces challenges.

"Rivals like Deliveroo and Uber Eats are offering delivery services and Just Eat is developing its own, in order to be able to offer a full service to branded chains like KFC and Pizza Hut.

"Setting these services up is holding back profitability and Just Eat are also upping investment into their Latin American business, which will all add to costs in the near term."

Mr Clayton warns a "battle royale" is brewing between the leading names in the sector, which some fear could be "long and costly”.

Investment takes a bite out of Just Eat profits

Just Eat bikes
Fergus Burnett

Just Eat says its full-year profits are likely to be at the lower end of forecasts, despite rising sales, due to the cost of investing in Latin America and elsewhere.

The takeaway group said annual revenues should be towards the top end of the £740m to £770m range, but the investment drive meant underlying profits would be at the lower end of the £165m to £185m range.

Will that be enough to spook investors still recovering from Halloween yesterday? We find out at 8am...