What: Shares of food-delivery company GrubHub (GRUB) jumped on Thursday following the company's fourth-quarter earnings report. GrubHub beat analyst estimates for both revenue and earnings, and the company provided in-line revenue guidance for the first quarter. At 3:20 p.m. ET, the stock was up about 11.5%.

So what: GrubHub reported quarterly revenue of $100 million, up 36% year over year and slightly higher than the average analyst estimate. Active diners totaled 6.75 million during the fourth quarter, up 34% year over year, while gross food sales rose 26% to $643 million.

GrubHub reported non-GAAP net income of $0.19 per share, up 16% year over year and $0.05 higher than analyst expectations. On a GAAP basis, EPS of $0.13 was flat year over year, with total costs rising by 48% year over year, substantially faster than revenue.

The company expects first-quarter revenue between $109 million and $112 million, in line with the average analyst estimate. Adjusted EBITDA is expected between $30 and $33 million, above analyst expectations of $28.6 million.

Now what: Shares of GrubHub have been hammered over the past year, falling nearly 50% prior to Thursday's gain. A string of mixed and negative earnings reports beginning in April of last year sent the stock tumbling.

GrubHub's growth rate has slowed, and concerns about intense competition in the food-delivery business have contributed to the stock's decline over the past year. The fourth quarter was generally positive for GrubHub, although costs are rising faster than revenue, and the number of daily average orders only grew by 19% year over year. Still, after a steep decline in the stock price over the past year, expectations are likely lower, and investors seem pleased with the company's results.