Just Eat share price forecast: can Just Eat deliver?

The takeaway giant hit one billion UK orders, but sales were lower than analysts predicted

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Just Eat Takeaway released its Q3 results on 13 October, revealing orders were up 25% globally compared to the same period in 2020. Although analysts expected more sales from the company and orders slowed in the US, Just Eat  showed strong growth in the UK market.

Just Eat Takeaway.com is the parent company of many different online food delivery services, including Just Eat, Grubhub, and Menulog. The company was created in 2020 when Just Eat and Takeaway.com completed a £6bn merger, forming the largest food delivery company outside of China.

Mixed Q3 results

Just Eat Takeaway reported that sales were up by 25% in Q3 compared to the same period last year. It also recorded a gross transactional value of €6.8bn, which is an e-commerce metric that calculates the total value of goods sold on a customer-to-customer website. This was lower than analysts expected, however. Nasdaq reported ING bank forecast orders to grow by 35% to 287 million, instead of the 266 million orders Just Eat Takeaway.com reported.

The takeaway company saw strong growth in the UK with orders up 51% compared to Q3 last year, making it the fastest growing country for Just Eat Takeaway.com. Just Eat UK also surpassed one billion orders since starting in 2005. The US market was the slowest with order growth only at 3%.

In the results, the company emphasised that the sales were strong for a post-pandemic summer season. Jitse Groen, Just Eat Takeaway's chief executive, said: “With most of the world returning to pre-pandemic life, our growth in the third quarter of 2021 has remained strong. Just Eat Takeaway.com is well-positioned for autumn and winter, our traditional growth season.”

Reuters calculated that Just Eat Takeaway will be operating at a loss of €280m to €380m by the end of 2021. When the firm reported a loss in its H1 results, Groen said it had significantly invested in operations.

As well as investing in the current platforms, the takeaway giant has also made acquisitions this year. In June, it acquired the American-based company Grub Hub for $7.3bn. However, it stalled in August as New York City capped the commissions that delivery services can charge restaurants at 15%.

Just Eat Takeaway also took over the Slovak food delivery service Bistro.sk for €50m, in a deal completed earlier this month. Just Eat announced that Bistro.sk will adopt the company’s global identity brand.

After results by the British takeaway service Deliveroo were posted, Just Eat's growth in the UK market was also expected. Deliveroo orders doubled in the first six months of this year compared to the same period in 2020 and are now at 148.8 million for the period. This was larger than the 135.5 million orders Just Eat recorded in the UK during H1 2021.

Uber recorded a boost in deliveries as well, with bookings at $12.9bn in Q2, an increase of 85%. Unlike Just Eat, Uber recorded a profit in the quarter for the first time and expected to reach profitability by the end of the year.

Just Eat share price news

The Just Eat Takeaway share price (TKWY) on the Euronext Amsterdam stock exchange fell 4.6% this morning, reacting negatively to the Q3 results. It closed yesterday at 64.85 and the TKWY share price opened today at 61.86.

Currently, the share price is around the 63 mark but it is the lowest it has been since March 2020 when it was at 61.05. Since the beginning of the year, Just Eat’s share price has been on a bearish trend. It saw spikes in June when it announced the acquisition of Grubhub and in August when it released its H1 results. However, the price has decreased from around the 100 mark at the beginning of the year to 61.86.

It was a similar story on the London Stock Exchange where the Just Eat share price (JET) decreased by almost half. It started the year at £9.98 on 12 January and today it is at £5.26.

WalletInvestor’s Just Eat forecast predicts the price will stay around the £5 mark for the rest of 2021 before increasing to £8.19 by next year. This is lower than the £10 it reached at the end of 2020. The site's Just Eat share price forecast 2025 says it will reach a peak of £17.10.

When recommending whether to buy JET stock, WalletInvestor said: “Our AI stock analyst implies that there will be a positive trend in the future and the JET shares might be good for investing.”

A similar prediction came from MarketBeat, which reported a maximum price of £9.15 for next year, according to the consensus from nine analysts. This would be an increase of 70% from its current price.

FAQ

It might be. WalletInvestor’s Just Eat share price forecast for 2021 says it will stay around the £5 mark, but it predicts an increase during 2022. MarketBeat forecasts a maximum price of £9.15 for next year. Remember, predictions are often wrong, so do not invest more than you can afford to lose.

Just Eat saw its share price soar during the pandemic as more people were ordering in because of the lockdown. However, its share price has been falling since the beginning of 2021 while other businesses in the FTSE100 saw the opposite. The summer season and UK lockdown easing in July could also have affected Just Eat’s stock price. A better 2022 is predicted for the takeaway company, but forecasts can be wrong. You should always do your own research before investing.

The CEO of Just Eat Takeaway is Jitse Groen, who founded Takeaway.com in 2000. The company merged with Just Eat at the beginning of this year.

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