Grubhub Is Facing Headwinds That Will Be Hard to Overcome
Grubhub (NYSE: GRUB) suffered a big third-quarter earnings miss in late October, and shares lost over 40% after the release of the disappointing results. The company's fourth-quarter guidance was also below expectations.
Analysts downgraded Grubhub stock after the earnings report, citing uncertainty over the company's new strategic plan, increasing competition, and decreasing margins. Furthermore, the company is facing scrutiny from regulators in one of its biggest markets regarding its business practices. Some of these practices are potentially leading to distrust between restaurant owners and the company.
Image source: Grubhub
Source Fool.com
