Jim Cramer: Do Not Buy GrubHub
GrubHub posted earnings
The loss was 36 cents a share compared with a profit of 7 cents in the year-earlier quarter.
On an adjusted basis Grubhub broke even in the latest quarter compared with an adjusted profit of 30 cents a share a year earlier.
A survey of analysts by FactSet produced consensus estimates of a loss of 33 cents a share, or an adjusted loss of 4 cents a share, on revenue of $358.1 million.
"The restaurant industry is facing enormous challenges in light of the difficult, but necessary, steps taken to keep us safe as we fight COVID-19," Founder and Chief Executive Matt Maloney said in a statement. "Grubhub is using nearly all of our profits in the second quarter to generate as many additional orders for our restaurant partners as possible. We hope that the darkest days are behind our restaurant partners and they can start focusing on the recovery."
Watch the video above for Jim Cramer's thoughts on GrubHub.
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