GrubHub Shares Exploded After The Company Did This

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GrubHub, the biggest U.S. online food-delivery service, saw shares rise more than 27% this morning.

The big move came after the company reported second-quarter revenue that increased 37% year-over-year to $120.2 million.

Earnings, excluding certain items, were 23 cents per share. This came in well ahead of Wall Street estimates of 19 cents per share and investors were all over it.

In the last few years, GrubHub had seen its order growth decline fast as other food delivery companies hit the sector.

According to analysts at Cowen and Company, the company’s strong second quarter was driven by a better tech platform and mobile app, a better selection of couriers and higher spending in advertising.

Disclaimer: We have no position in GrubHub Inc (NYSE: GRUB) and have not been compensated for this article.