GrubHub Details Plan To 'Enhance Shareholder Value,' Shares Spike Higher

Shares of

were trading higher by nearly 10 percent at $21.00 early Monday morning after the company

a plan to "enhance shareholder value." GrubHub detailed several "value-enhancing initiatives" including a $100 million stock repurchase authorization and approval for management to negotiate and enter a credit facility of up to $200 million. GrubHub added it will appoint 2 new independent directors from "leading companies with extensive product development expertise and/or executive leadership experience." The search for these directors is being led by the Board's Nominating and Corporate Governance Committee. GrubHub also reported its preliminary fourth quarter 2015 results and expects to report revenue of $98 million to $100 million. By comparison, Wall Street analysts were estimating the company to report revenue of $99.26 million. "Today's announcement reflects the commitment of the Board and management to maximize growth and long-term shareholder value, and reflects valuable input we have received from our shareholders," said Matt Maloney, CEO. "We made solid progress in the fourth quarter, delivering revenue at the high end of guidance and adjusted EBITDA above guidance as we continued our momentum in delivery and leveraged our position as the clear leader in mobile and online takeout ordering. We continue to generate excellent cash flow, and the new credit facility will further augment our already strong cash position, enabling us to aggressively pursue strategic growth opportunities in 2016 and beyond."