Grubhub Inc. said the food-delivery company isn’t for sale, pushing back against media reports that had sent its stock surging.
“We felt it was important to clarify that there is unequivocally no process in place to sell the company and there are currently no plans to do so,” a representative for the company said in a statement. “We have always consulted advisers about a broad range of issues, including potential acquisition opportunities -- that has not changed.”
Grubhub is confident in its growth strategy whether or not it makes acquisitions, the representative said.
The Wall Street Journal and New York Post reported Wednesday that Grubhub was considering a potential sale.
Shares of Chicago-based Grubhub fell about 7% after the close of regular trading Thursday. They had risen 1.8% to US$55.73 earlier in the day, giving the company a market value of about US$5.1 billion.
Grubhub’s place in the food delivery market has fallen precipitously over the past year as upstarts spent aggressively to break in. Its stock, which nosedived after it published a dismal earnings forecast, remains down more than 30% from a year ago.
Unlike many of its peers, Grubhub has been profitable. The company reported net income of US$1 million on revenue of US$322 million for the quarter ended Sept. 30. Analysts estimate it will have an adjusted loss of US$3.7 million for the quarter ended Dec. 31, according to data compiled by Bloomberg.