Why Grubhub's Stock Was Down 12.5% Today
Grubhub (NYSE: GRUB) stock fell sharply on Thursday after a first-quarter earnings report that failed to produce the expected gains from the coronavirus pandemic.
Although food delivery turned out to be a lifeline that has kept many restaurants afloat, New York is Grubhub's biggest market for both consumers and corporate orders, and is also the epicenter of the pandemic. Its business there suffered greatly, with restaurant partner business plunging 50% from pre-crisis levels, while other Tier 1 cities saw a 10% to 25% decline. Tier 2 and Tier 3 cities fared better, only losing 10% of their business.
Image source: Grubhub.
Source Fool.com
