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Just Eat Shares drop on Q3 GTV miss, hit by North American underperformance

Published 16/10/2024, 06:16 pm
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TKWY
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Investing.com -- Shares of Just Eat Takeaway.com (AS:TKWY) fell on Wednesday after it reported weaker-than-expected gross transaction value for the third quarter, largely driven by underperformance in its North American market. 

At 3:13 am (0713 GMT), Just Eat Takeaway.com was trading 4.1% lower at €11.85.

Group-wide GTV fell by 3% year-on-year, missing consensus estimates of a 1% decline. 

The decline in GTV was especially evident in North America, where the company fell 12%, versus an expected 8% drop.

“Northern Europe and the UK and Ireland continued their positive momentum, and these segments now represent circa 60% of the Group’s total orders,” said Jitse Groen, CEO of Just Eat Takeaway.com.

The UK & Ireland met expectations of a 6% rise, while Northern Europe’s 4% increase lagged behind the 6% target. 

In addition to Southern Europe, Australia & New Zealand had a 12% decline, a fraction better than the 13% expected decline.

“We remain cautious around its mid-term growth, in light of its reduced investments and an ongoing challenging consumer backdrop,” said analysts at RBC Capital Markets in a note.

Despite the underwhelming performance in some regions, Just Eat reaffirmed its full-year guidance. The company expects GTV growth excluding North America to be between 2% and 6%, maintaining its previous target. 

However, with the North American market continuing to struggle, full-year GTV is expected to be flat overall. 

Adjusted EBITDA guidance for the year remains at approximately €450 million, closely aligned with the market consensus of €457 million.

The company noted an improving trend towards the end of the quarter following a sluggish July, though it faces the ongoing challenge of reviving growth in its crucial North American segment.

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