Grubhub says there is no process in place to sell the company, a day after media reports said the company was exploring its options as competition in the food delivery business grows increasingly competitive
Grubhub says there is no process in place to sell the company, a day after media reports said the company was exploring its options as competition in the food delivery business grows increasingly competitive.
The Wall Street Journal reported earlier this week that Grubhub Inc. – the second-largest player in the U.S. market by sales – was thinking about putting itself up for sale.
Grubhub said in a statement that because of the media speculation, it felt it was necessary to clarify “that there is unequivocally no process in place to sell the company and there are currently no plans to do so.”
The Chicago company stands out from other recent startups in that it is making money. Grubhub was punished in October when it slashed its revenue expectations, but it also reported food sales in the most recent quarter grew 15% year-over-year to $1.4 billion.
Grubhub said that because its profitability is secure, it believes there will likely be opportunities to acquire share this year and that it continues to consult with advisers on possible acquisitions.
Shares dropped 7.6% in premarket trading Friday.