Just Eat Takeaway.com NV (LSE:JET, NASDAQ:GRUB) is considering the sale of its US business Grubhub, which it only bought last June for US$7bn.
It said: " Management is currently, together with its advisers, actively exploring the introduction of a strategic partner into and/or the partial or full sale of Grubhub. There can be no certainty that any such strategic actions will be agreed or what the timing of such agreements will be."
With a 70% drop in its share price in the last twelve months as demand for takeaway food fell back from pandemic levels, it has come under pressure from investors to revise its strategy.
One shareholder, Cat Rock Capital, complained of poor communication and called on the company to seek a merger and dispose of non-core assets.
Announcing the Grubhub move, Just Eat said: "The management board confirms its alignment with shareholders in wanting to both create and realise value from the company's highly attractive portfolio of assets."
The shares have jumped 5.23% to 2284.5p on the news, which overshadowed a 1% fall in first quarter total orders to £264.1mln, compared to expectations of £274.6mln.
The company also cut its forecast for the value of transactions this year. It now expects to see mid-single digit year-on-year growth in 2022. Previously it expected growth in the mid-teens.
But it believes profitability will gradually improve throughout the year, and it would return to positive adjusted EBITDA in 2023.
Russ Mould, investment director at AJ Bell said: “Shareholders in Just Eat reacted positively to a plan to potentially sell its US platform Grubhub. Just Eat shares have struggled for months as it has lost customers gained during the pandemic as consumer habits shift back to dining out rather than booking a takeaway.
“Key to success in this highly competitive market is scale, however selling Grubhub could give Just Eat Takeaway the resources necessary to dominate in Europe.
“The price tag for any divestment will be closely watched and could embarrass current management given Grubhub was purchased for more than US$7bn just last June.
“However, sparing management’s blushes should not be the priority and if this is the right decision for the future of the business then it seems logical for Just Eat to press ahead with a sale."