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Stock Analysis & ValuationJust Eat Takeaway.com N.V. (JET.L)

Professional Stock Screener
Previous Close
£1,134.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, £Upside, %
Artificial intelligence (AI)n/an/a
Intrinsic value (DCF)n/a
Graham-Dodd Methodn/a
Graham Formulan/a

Strategic Investment Analysis

Company Overview

Just Eat Takeaway.com N.V. (JET.L) is a leading global online food delivery marketplace headquartered in Amsterdam, Netherlands. Operating in over 20 countries, including key markets like the UK, Germany, Canada, and the US, the company connects consumers with restaurants through its digital platforms. Founded in 2000, Just Eat Takeaway.com has grown through strategic acquisitions, including the merger with Takeaway.com and the acquisition of Grubhub. The company operates in the Specialty Retail sector under the broader Consumer Cyclical category, focusing on convenience-driven food delivery services. Despite facing intense competition, Just Eat Takeaway.com maintains a strong presence in Europe and North America, leveraging its technology and logistics network to facilitate seamless food ordering and delivery. The company’s asset-light model allows it to scale efficiently while partnering with a vast network of restaurants. However, profitability challenges persist due to high operational costs and competitive pricing pressures in the food delivery industry.

Investment Summary

Just Eat Takeaway.com presents a high-risk, high-reward investment opportunity in the competitive food delivery sector. The company’s extensive geographic footprint and strong brand recognition in Europe are key strengths. However, its financials reveal significant challenges, including a net loss of €1.85 billion in FY 2023 and negative diluted EPS (-€8.69). While operating cash flow remains positive (€125 million), high debt levels (€2.36 billion) and intense competition from well-capitalized rivals like Uber Eats and DoorDash pose risks. The stock’s beta of 1.286 indicates higher volatility compared to the broader market. Investors should weigh the company’s potential for market consolidation against its ongoing profitability struggles and macroeconomic pressures affecting discretionary spending on food delivery.

Competitive Analysis

Just Eat Takeaway.com operates in a hyper-competitive online food delivery industry dominated by global players with deep pockets. The company’s primary competitive advantage lies in its strong European market penetration, particularly in the UK, Germany, and the Netherlands, where it benefits from first-mover advantage and brand loyalty. Its hybrid model—combining marketplace and logistics services—provides flexibility but also increases operational complexity. Unlike pure logistics-focused competitors like Deliveroo, Just Eat Takeaway.com’s asset-light approach reduces capital intensity but may limit control over delivery quality. The company faces stiff competition from Uber Eats, which leverages Uber’s vast driver network and aggressive pricing, and DoorDash, which dominates the US market. Additionally, regional players like Delivery Hero and Glovo pose threats in specific markets. Just Eat Takeaway.com’s acquisition of Grubhub was intended to bolster its US presence but has struggled against DoorDash’s dominance. The company’s ability to achieve profitability hinges on optimizing its logistics network, reducing customer acquisition costs, and potentially divesting underperforming markets to focus on core regions.

Major Competitors

  • Uber Technologies Inc. (UBER): Uber Eats, a segment of Uber Technologies, is a formidable competitor due to its integration with Uber’s ride-hailing ecosystem, providing a vast driver network and cross-platform user engagement. Uber’s strong brand and financial resources allow aggressive pricing and promotions, but its reliance on gig-economy labor creates regulatory risks. Compared to Just Eat Takeaway.com, Uber Eats has a stronger presence in the US and emerging markets.
  • DoorDash Inc. (DASH): DoorDash is the US market leader in food delivery, with superior logistics technology and a dense merchant network. Its focus on suburban markets and partnerships with national chains give it an edge over Just Eat Takeaway.com’s Grubhub. However, DoorDash has limited international exposure, making it less of a direct threat in Europe.
  • Delivery Hero SE (DHER.DE): Delivery Hero is a key rival in Europe and Asia, with a strong focus on emerging markets. Its ownership of brands like Foodpanda gives it broad reach, but its heavy losses and high cash burn mirror Just Eat Takeaway.com’s challenges. Delivery Hero’s aggressive expansion contrasts with Just Eat Takeaway.com’s more measured approach.
  • Deliveroo PLC (ROO.L): Deliveroo competes closely with Just Eat Takeaway.com in the UK and select European markets. Its vertically integrated logistics model ensures faster delivery times but at higher operational costs. Deliveroo’s partnership with Amazon provides a competitive edge, though its geographic footprint is narrower than Just Eat Takeaway.com’s.
  • Glovoapp23 SL (GLVOF): Glovo, a Barcelona-based delivery platform, specializes in quick-commerce (grocery and convenience deliveries) alongside food. Its strength in Southern Europe and Latin America poses regional competition to Just Eat Takeaway.com. Glovo’s multi-category approach differentiates it but may dilute focus on core food delivery.
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