(Bloomberg) -- Just Eat Takeaway.com NV’s better-than-expected adjusted earnings forecast for the year failed to impress as demand remained weak in the US.

The food delivery giant targeted gross transaction value growth at constant currency rates in the range of 2% to 6% in 2024, according to a statement Wednesday, but the forecast excluded its business in North America, where the value of orders dropped 14% in 2023.

Fee cap regulation in New York City is costing the firm about $100 million a year, which makes it “very hard” for the company to invest in that business, Chief Executive Officer Jitse Groen said on a call with journalists. 

Shares fell as much as 7.6%, the biggest drop in two weeks, and were trading down 7% at €13.98 at 10:32 a.m. in Amsterdam.

Just Eat, like other delivery companies, struggled to return to the surging growth it saw during the Covid-19 lockdowns when restaurants were shut and more users were stuck at home. It has focused on cutting costs and boosting the average order size in an attempt to pivot to profitability.

Adjusted earnings before interest, taxes, depreciation, and amortization are seen rising by more than a third to about €450 million ($487 million) in 2024, the Amsterdam-based company said. That compares to the €429 million average forecast estimate from analysts in a Bloomberg survey.

Free cash flow before changes in working capital will remain positive this year and in the future, the company said. 

The company provided a “confusing and weak” outlook for the year with details on segment performance that raise concerns, Bernstein analyst William Woods said in a note. He added that 2023 was a “challenging” year for the firm, even excluding North America.

Just Eat reported a net loss of €1.85 billion for 2023, missing analyst estimates of a net loss of €449 million. The loss includes a €1.54 billion impairment related to past acquisitions, the firm said.

Adjusted Ebitda last year was €324 million, which compares to an analyst estimate of €317 million.

--With assistance from Kwaku Gyasi.

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