Just Eat shares drop as Q1 orders disappoint

Shares in Just Eat dropped sharply on Wednesday after the food delivery marketplace delivered underwhelming order numbers for the first quarter, though revenue growth picked up sharply in the UK and Ireland.

Orders totalled 214.2m in the first three months of the year, down 6% on the same period last year, the company said. Analysts at Deutsche Bank were expecting a figure closer to 220.2m.

Just Eat saw orders grow 1% in the UK and Ireland to 60.3m, but this was offset by a 1% decline in Northern Europe to 68.2m, a 16% drop in Southern Europe, Australia and New Zealand to 20.8m and a 12% fall in North America to 64.9m.

Total gross transaction value or GTV came in at €6.55bn, down 2% year-on-year, but the company's largest regions, Northern Europe, and UK and Ireland both registered strong growth.

GTV in Northern Europe gained 5% to €2.0bn, while GTV growth in the UK and Ireland accelerated to 11% to €1.71bn from 5% in the fourth quarter. On the downside, GTV in Southern Europe and ANZ dropped 15% while North American GTV fell 11%.

"Just Eat Takeaway.com started the year well, with the acceleration of GTV growth in UK and Ireland and our continued momentum in Northern Europe in Q1 2024," said chief executive Jitse Groen.

"We are excited that the investments in our business are paying off, and we are looking forward to the rest of the year."

The stock was down 5.5% at 1,130p by 1131 BST.