Just Eat share price drops eight per cent despite orders up 64 per cent
Online home delivery marketplace JUST EAT failed to deliver for investors despite offering them a tasty 64 per cent increase in orders in its third quarter trading update.
Shares closed down 1.63 cent, at 433.7p, having dropped as low as 408.2p, during trading.
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The company reported that the poor summer weather had boosted sales in the three months ended September and that sales were up 57 per cent over the last nine months. And the company raised its revenue expectations for the full year slightly, from £230m to £240m.
Analysts cited possible competition from restaurants, such as Nandos and Pizza Express, as a reason for the drop in shares.
Chief executive David Buttress, said:
JUST EAT delivered a strong quarter of organic order growth. Our strategy of investing in technology and marketing to drive growth has delivered orders ahead of management expectations with an acceleration in order momentum. In the context of this performance, we are raising our revenue guidance for the full year. I would like to thank the whole team for their hard work and commitment in delivering these excellent results.