Shares of GrubHub Inc. (NYSE:GRUB) heated up again last month, as the food-delivery specialist continued gaining after posting a strong earnings report toward the end of October. Though there was little news out on the stock during November, momentum from the third-quarter earnings report and its recent acquisition of Eat24 from Yelp, along with a strategic partnership with the local review site kept the stock moving higher. As a result, Grubhub shares finished up 11%, according to S&P Global Market Intelligence.
The stock gained steadily over the course of the month:
In October, Grubhub shares tacked on 16% as the online restaurant marketplace beat estimates on top and bottom lines in its third-quarter earnings report. Revenue increased 32%, and earnings per share rose 22%. Investor confidence in Grubhub continues to build, as the company has successfully withstood challenges from deep-pocketed rivals Amazon.com and Uber and consolidated its leadership with its recent acquisition of Eat24, Foodler, and 27 of OrderUp's markets.
Recent partnerships with Yelp and Groupon also gave the company a leg up in local commerce, as the two companies will integrate online ordering from Grubhub restaurants onto their platforms. With Eat24, Grubhub is now the market leader online food delivery in nine of the 22 biggest cities in the country, and a similar deal gave some of OrderUp's assets.
E-commerce stocks have exploded this year as customers are gaining appreciation for the potential of online shopping. Grubhub shares are now up 82% this year after mixed results earlier in the company's history. Amazon, meanwhile, has jumped 54% this year, and online furniture seller Wayfair has more than doubled, gaining 110%.
As restaurant traffic slides, eateries are increasingly turning to delivery platforms like Grubhub, and the convenience of online ordering and the need to have food delivered should ensure a long road of growth ahead for Grubhub.