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Just Eat’s share price (LSE:JE.) surged by 2.12% to 371.00 today on the London Stock Exchange as investors cheered the company’s maiden full-year report since listing on 08 April 2014. This was especially encouraging to me, as I spent several decades trying to figure out what “Just Do It” meant. Now I know. Just Eat. I can do that!
Just Eat was a food delivery service idea cooked up in a basement in Denmark just a bit after the turn of the century. Not exactly an original idea, who would have imagined that a food delivery service would expand beyond its own locale? But the vision of Just Eat wrapped all the way around the globe. That journey began when the company began operations in the UK in 2006.
Less than 10 years later, Just Eat has become “the world’s leading online marketplace for restaurant delivery.” Combining the latest in widely-available consumer technology, including mobile apps, Just Eat now provides on-demand delivery from a growing network of restaurants that currently numbers close to 46,000. That equals more than eight million satisfied customers, not to mention the equally satisfied restaurants that have gained customers without having to wait for them to leave home to just eat.
Delec’table’ Results
These results appeal to any investor’s palate:
- Active users increased by 37% over 2013.
- Revenues increased from £96.8 million to £157.0 million, up 62%
- EBITDA increased from £14.1 million to £32.6 million, up 131%
- Cash flow increased from £19.2 million to £38.1 million, up 98%
- Basic EPS increased from 1.5 pence to 9.8 pence, up 553%
What the Guys at the Head of the Table Says
CEO David Buttress prefaced his remarks saying, “Our results demonstrate how we are successfully building market-leading positions as more consumers discover the ease of use and wide choice of cuisines that our marketplaces for takeaway food offer.”
Chairman John Hughes commented that, “The investment community is increasingly recognizing the value of JUST EAT, as we continue to deliver on our commitments. Our business model delivers value to consumers and restaurants, which in turn creates value for shareholders.”
“We aim to deliver predictable and transparent financial performance. JUST EAT’s significant operational leverage saw margins expand as revenues grew, more than offsetting our substantial ongoing investments in group infrastructure, technology and markets.”
Buttress continued, indicating that, “We have a clear focus on delivering on our three strategic initiatives, including completing appropriate M&A and developing our people for the long term. We completed seven M&A transactions during the year and three post year end. These delivered on our stated aims of acquiring leaders in markets of scale, making in-market acquisitions and advancing our technology base.”
Hughes underscored the importance of the company’s IPO, saying that it “has given us the financial strength to develop through acquisition, if opportunities to buy leading positions in markets of scale present themselves. In the short term, our strategy is to continue to build our business by extending our leadership in existing markets and to focus on technology and innovation.”
From Collaborative Start-up to Collaborative Economy Star
There is no question that Just Eat’s star has risen and all indications are that it will continue to do so within the framework of a solid business plan and a sound strategy. Generally rated as a Strong Buy, wise investors are considering getting a piece of this pie.
