Just three years after floating on the London Stock Exchange, takeaway food marketplace Just Eat PLC (LON:JE.) is set to join some of Britain’s big businesses on the FTSE 100.
Just Eat is expected to be promoted to the blue chip index – home to the likes of Sky PLC (LON:SKY), Tesco PLC (LON:TSCO) and HSBC Holdings PLC (LON:HSBA) – on Wednesday, capping off an incredible few years for the company.
During that time its share price has rocketed from 260p to more than 800p today, valuing it at £5.5bn – more than J Sainsbury plc (LON:SBRY).
READ: Just Eat gets unconditional approval for Hungryhouse merger
The firm has taken advantage of changing consumer habits and selective acquisitions to rapidly grow order numbers and revenues in recent years.
Earlier this month, it was given the provisional green light by regulators to complete its £240mln takeover of rival Hungryhouse – a move which analysts think should help it as competition from Deliveroo and UberEATS intensifies.
DS Smith and Halma set for promotion as well
In addition to Just Eat, paper packaging specialist DS Smith PLC (LON:SMDS) and health and safety sensor maker Halma PLC (LON:HLMA) are expected to join the blue chips on the FTSE 100 when the announcement is made on Wednesday.
It’s not such good news for Madame Tussauds and Thorpe Park owner Merlin Entertainments PLC (LON:MERL), which looks set to be demoted to the FTSE 250.
The company – which also owns Legoland and the London Eye – has seen visitor numbers tail off in response to the heightened UK terror threat level, while poor weather towards the end of summer hit trading in its peak season.
Babcock, Merlin and Mediclinic to lose FTSE 100 status
One of the UK’s oldest engineering firms Babcock International Group PLC (LON:BAB) could also get the boot.
The industry as a whole is struggling and Babcock’s share price has taken a kicking recently as concerns over military spending and troubles elsewhere in the outsourcing sector – think Carillion PLC (LON:CLLN) – weigh heavily.
Private hospital group Mediclinic International Plc (LON:MDC) is the third and final company set to lose its blue chip status.