Just Eat Takeaway faces pressure from a top shareholder

An worker makes a pizza subsequent to a Simply Eat Plc branded supply bag within the kitchen of The Fats Pizza takeaway pizza restaurant in Southend-on-Sea, U.Okay., on Thursday, Dec 19, 2019.

Chris Ratcliffe | Bloomberg through Getty Pictures

LONDON — Just Eat Takeaway.com is one in every of Europe’s greatest meals supply firms, with a market worth of $17.8 billion. However one shareholder thinks the Grubhub proprietor must be value much more.

“JET’s deeply flawed communication has made it the worst-performing on-line meals supply inventory over the previous two years regardless of robust operational efficiency,” Cat Rock Capital mentioned Tuesday. The corporate holds a 4.2% stake in Simply Eat Takeaway.

Amsterdam-listed shares of JET are down about 22% this yr, which German rival Delivery Hero has fallen round 2%.

Cat Rock Capital mentioned JET’s income a number of was weaker than that of rivals. It mentioned DoorDash, which is predicted to generate an identical quantity of gross sales as JET’s this yr, is value greater than 4 instances as a lot as its European counterpart.

JET was shaped final yr on account of a merger between Britain’s Simply Eat and Dutch operator Takeaway.com. The mixed on-line takeout app subsequently went on to accumulate U.S.-based Grubhub, beating a rival takeover bid from Uber.

Cat Rock Capital mentioned JET was itself weak to a takeover from a competitor — and it would not be at a positive worth.

“Simply Eat Takeaway.com is a unbelievable enterprise with #1 positions in lots of the world’s most respected on-line meals supply markets and a protracted runway for progress,” mentioned Alex Captain, founder and managing accomplice of Cat Rock Capital.

“Nevertheless, JET has did not improve its communications with buyers and the markets since IPO, leaving it deeply undervalued and weak to takeover bids at far under intrinsic worth.”

The funding agency took difficulty with JET CEO Jitse Groen’s sparring with Uber boss Dara Khosrowshahi on Twitter. Groen accused Khosrowshahi of attempting to “depress” his agency’s share worth by saying an enlargement of Uber’s Eats supply enterprise in Berlin, a serious marketplace for JET.

JET ought to discover “strategic combos” with rivals to strengthen the corporate’s efficiency, Cat Rock Capital mentioned.

The inventory rose greater than 2% Tuesday, at the same time as most European markets fell, following the publication of Cat Rock Capital’s feedback. The Greenwich, Connecticut-based funding agency is JET’s fifth-biggest shareholder, in response to information from Refinitiv.

“Simply Eat Takeaway.com has an everyday dialogue with all its shareholders and we take all their views very significantly,” a spokesperson for JET informed CNBC.

“We can be internet hosting a capital markets day in October to offer the market with elevated visibility on how we’ll capitalise on the thrilling, long-term progress alternatives that we’ve got throughout our enterprise.”

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