GrubHub Could Find an Unlikely Ally in Donald Trump
Food delivery service GrubHub is a 'Favorite Trump Trade' at Credit Suisse.
Credit Suisse is calling food deliver service GrubHub (GRUB) - Get Report a "Favorite Trump Trade." GrubHub's tax rate of 41% is notably higher than its competitors. If Trump cuts the corporate tax rate to 20%, GrubHub's 2018 earnings would jump from $1.34 to $1.82 a share.
A tax break could be cold comfort to GrubHub CEO Matt Maloney. After the election, Maloney attacked Trump's "nationalist, anti-immigrant and hateful politics" in a staff email.
GrubHub may need all the help it can get. Food-ordering competition is mounting, with offerings from Amazon and Facebook.
This article was written by a staff member of TheStreet.
