Here’s Why GrubHub (GRUB) Stock Closed Up Today
NEW YORK (TheStreet) -- GrubHub (GRUB) - Get Report stock close higher by 0.36% to $24.85 on Wednesday, after the company increased its revenue outlook after completing the acquisition of LAbite, a restaurant delivery service operating in the greater Los Angeles area.
"We are excited by the acquisition of LAbite as it adds to the tremendous strides we've made in expanding the breadth and depth of our delivery network and boosts our presence in an important market," CEO Matt Maloney said in a statement last week when the deal was announced.
Chicago-based GrubHub, an online and mobile food-ordering company, raised its 2016 full year revenue guidance to $465 million to $480 million, compared with the previous outlook of $450 million to $465 million.
For the 2016 second quarter, the company expects to report revenue of $113 million to $115 million, up from the prior guidance of $109 million to $111 million.
Separately, GrubHub has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins, which is offset by generally disappointing stock performance, unimpressive growth in net income and weak operating cash flow.
You can view the full analysis from the report here: GRUB
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
