GrubHub Profit Soars

GrubHub Inc.'s third-quarter earnings soared as the online food ordering and delivery company continued to attract more customers, who in turn ordered more food from restaurants in the company's network.

For the current quarter, the company forecast revenue of $136 million to $138 million, mostly higher than estimates of analysts polled by Thomson Reuters for $136.2 million.

Chief Executive Matt Maloney said GrubHub delivers for restaurants in more than 60 markets across the U.S. and that its growth rate generally is highest in markets where its drivers also deliver a substantial percentage of its orders.

Over all, GrubHub reported a profit of $13.2 million, or 15 cents a share, up from $6.9 million, or 8 cents a share, a year earlier. Excluding stock-based compensation, acquisition-related impacts and other items, adjusted per-share earnings rose to 23 cents from 13 cents. Analysts expected adjusted per-share earnings of 19 cents.

Revenue increased 44% to $123.5 million, above expectations for revenue of $116 million to $119 million.

The number of active diners—accounts used to place at least one order in the previous 12 months—rose 19% to 7.69 million and average daily orders grew 26%. Gross food sales improved 33% to $735 million.

GrubHub, which went public in April 2014, has generated increasing profit by charging restaurants a commission on orders booked through its service. The company's acquisitions of DiningIn and Restaurants on the Run last year expanded GrubHub's presence in online ordering as well as deliveries for independent restaurants. Earlier this year, GrubHub expanded its delivery presence with its purchase of LAbite, a Southern California restaurant-delivery service company.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

October 26, 2016 09:35 ET (13:35 GMT)

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