Market Overview

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

Share:

Shares of GrubHub Inc (NYSE: GRUB) were trading higher by 10 percent at $21.20 early Monday morning after the company released 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 two 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."

Posted-In: Food Ordering Food Ordering Stocks GrubHub Matt MaloneyNews Guidance Movers

 

Related Articles (GRUB)

View Comments and Join the Discussion!
Need corporate guidance data?
Click here to see licensing options.
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Benzinga's Top Downgrades

CLSA Downgrades SanDisk, Sees 25% Chance Western Digital Deal Falls Apart