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February 22, 2020
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Grubhub denies it’s for sale, stock drops 6% after hours

Grubhub denies it's for sale, stock drops 6% after hours
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A GrubHub app on a mobile phone

Daniel Acker | Bloomberg | Getty Images

Grubhub said on Thursday there is no sale process, denying reports that the online food delivery company was considering strategic options that include a possible sale or an acquisition, sending its shares down 6.7% in extended trading.

“We felt it was important to clarify that there is unequivocally no process in place to sell the company and there are currently no plans to do so,” a Grubhub spokesperson said in a statement.

The New York Post reported earlier Thursday that executives from Walmart and at least three other grocers have considered acquiring Grubhub, while a Wall Street Journal report said the Chicago-based company has tapped financial advisers to help with the review.

“We have always consulted advisers about a broad range of issues, including potential acquisition opportunities – that has not changed,” Grubhub spokesperson added.

Competition has intensified in the food-delivery industry with Uber’s UberEats, which has grown into a national competitor, and startups such as DoorDash and Postmates.

Full statement from Grubhub below:

While our policy is not to comment on rumors, given the considerable media speculation that appeared yesterday, we felt it was important to clarify that there is unequivocally no process in place to sell the company and there are currently no plans to do so. We have always consulted advisors about a broad range of issues, including potential acquisition opportunities — that has not changed.

In fact, we believe that given the current pressure on profits across our public and private competition, there will likely be strategic opportunities to acquire share this year — given that our profitability is secure. However, as we have said previously, we are very excited about our near- and long-term opportunities and are confident in our organic growth strategy and our execution without M&A.

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