Cat Rock Capital Releases Presentation on Grubhub and Just Eat Takeaway.com
Cat Rock Capital Management LP (together with its affiliates and controlling persons, “Cat Rock Capital”), a long-term oriented investment firm and holder of approximately 14.0 million shares in the capital of Just Eat Takeaway.com NV (“Just Eat Takeaway.com”, “JET”, or “the Company”) (LSE: JET, AMS: TKWY, NASDAQ: GRUB), representing circa 6.5% of Just Eat Takeaway.com’s outstanding shares, today published a presentation on the strategic value of Grubhub and its implications for Just Eat Takeaway.com. The presentation is available for download at JustEatMustDeliver.com.
Alex Captain, Founder and Managing Partner, Cat Rock Capital Management LP, commented:
“As one of Just Eat Takeaway.com’s largest and longest-standing shareholders, we shared our view last month that JET should refocus its business on Europe and unlock the significant value of Grubhub through consolidation with a US-focused company.
“Since sharing our views last month, we have had a productive dialogue with JET management. We agree with the Company’s intention to participate in US consolidation and favor timely action that refocuses JET on its enormous European same-day delivery opportunity.
“Today, we are sharing our research on the significant strategic opportunities for Grubhub publicly for the benefit of JET’s shareholders and Board. Cat Rock has spent over six years researching the online food delivery sector and has been a shareholder of JET and its predecessor companies for over four years. Our views on JET’s strategy reflect our enthusiasm for the Company’s long-term prospects and value assuming focused execution and pragmatic strategic action.
“Same-day delivery is the future of e-commerce globally. In the US alone, same-day delivery has a $2.6 trillion addressable market and has been growing at 79% per year since 2017.(1)
“Grubhub is one of only four scaled independent same-day delivery networks in the United States, which gives it significant strategic and intrinsic value. Today, Grubhub has over 32 million customers generating ~$10 billion of sales,(2) a partner base of over 300,000 restaurants,(3) and a logistics network consisting of ~200,000 couriers delivering ~$7 billion of foodacross over 4,000 cities.(4)
“Same-day delivery allows physical retailers to offer faster delivery times than traditional e-commerce players, making them far more competitive as consumers increasingly shop online.
“Grubhub’s same-day logistics network across over 4,000 US cities has incredible value to a broad range of e-commerce and physical retailers,(5) including Amazon.com, Walmart, Target/Shipt, Instacart, and Kroger, among others. Moreover, Grubhub’s restaurants and customers also have significant value to a broad range of US-focused technology companies like Uber, Lyft, Booking.com, Square, and Toast.
“The pace of change in online food delivery is staggering, particularly as the COVID-19 pandemic altered consumer behavior and unlocked enormous new market opportunities. JET should adapt its strategy to the changes that have occurred in the 17 months since announcing the Grubhub deal, which have increased the strategic value of same-day logistics platforms and expanded the addressable market for online food delivery.
“We believe Just Eat Takeaway.com should act expeditiously to refocus its business on Europe, where it is the clear market leader in online food delivery and best-positioned to capture the incredibly large same-day delivery opportunity.
“We welcome continued dialogue with Just Eat Takeaway.com’s Board and shareholders regarding our research and perspectives. With focused execution, JET will be the future of same-day delivery in Europe, and we could not be more excited about the Company’s prospects.”
The Cat Rock presentation and past releases are available at JustEatMustDeliver.com.
White & Case LLP and Loyens & Loeff N.V. serve as legal advisor to Cat Rock Capital.
About Cat Rock Capital Management LP
Cat Rock Capital Management LP is a long-term focused investment firm that manages capital on behalf of pension funds, endowments, foundations, and other institutional investors. It seeks to invest in a select number of high-quality companies, with a long-term approach that emphasizes deep fundamental research. Cat Rock Capital is based in Connecticut, USA and was founded in 2015 by Alex Captain.
(1) According to CRC calculations; sales figure based on 2021 estimated online sales as per eMarketer (April 2021) and estimated addressable offline sales as per Morgan Stanley report, “Why Amazon Same-Day May Be Coming, and the On-Demand Battle is Set to Begin,” 2 June 2021; growth rate based on CRC estimated growth in same-day delivery sales; same-day delivery sales include estimated sales for Amazon Restaurants, Caviar, DoorDash, Eat24, Grubhub, Postmates, Uber Eats, Waitr, Yelp, Amazon Fresh, Fresh Direct, Instacart, Kroger, Prime Now, Shipt (Target), Walmart Grocery, Whole Foods Prime, GoPuff; DoorDash sales based on reported Marketplace GOV, as per Company filings and Visible Alpha consensus (for 2021 estimate); Grubhub sales based on reported Gross Transaction Value, as per Company filings and Visible Alpha consensus (for 2021); Gopuff sales according to The Information, “Gopuff Revenue Triples, but Growing Competition to Test Expansion,” 26 April 2021; other company sales based on sales estimates from YipitData; Amazon and Walmart sales include all online grocery deliveries, whether they be same-day deliveries or not, but exclude general merchandise items delivered same-day.
(2) Number of customers as per JET Capital Markets Day presentation dated 21 October 2021; sales represent 3Q21 annualized Gross Transaction Value as per JET Q3 2021 trading update.
(3) JET Capital Markets Day presentation dated 21 October 2021.
(4) Number of couriers based on CRC estimate; food value based on Gross Transaction Value and logistics mix as per JET Q3 2021 trading update; number of cities as per JET June 2021 investor presentation.
(5) JET June 2021 investor presentation.
Cat Rock Capital Management LP and certain of its affiliates and controlling persons (collectively, “Cat Rock Capital”), is publishing this announcement solely for the information of other shareholders in Just Eat Takeaway.com NV (“Just Eat Takeaway.com”). This announcement is not intended to be and does not constitute or contain any investment recommendation as defined by Regulation (EU) No 596/2014 (as it forms part of the domestic law in the United Kingdom by virtue of the European Union (Withdrawal) Act 2018). No information in this announcement should be construed as recommending or suggesting an investment strategy. Nothing in this announcement or in any related materials is a statement of or indicates or implies any specific or probable value outcome in any particular circumstance. This announcement is provided merely for general informational purposes and is not intended to be, nor should it be construed as (1) investment, financial, tax or legal advice, or (2) a recommendation to buy, sell or hold any security or other investment, or to pursue any investment style or strategy. Neither the information nor any opinion contained in this announcement constitutes an inducement or offer to purchase or sell or a solicitation of an offer to purchase or sell any securities or other investments in Just Eat Takeaway.com or any other company by Cat Rock Capital or any fund or other entity managed directly or indirectly by Cat Rock Capital in any jurisdiction. This announcement does not consider the investment objective, financial situation, suitability or the particular need or circumstances of any specific individual who may access or review this announcement and may not be taken as advice on the merits of any investment decision. This announcement is not intended to provide the sole basis for evaluation of, and does not purport to contain all information that may be required with respect to, any potential investment in the Company. Any person who is in any doubt about the matters to which this announcement relates should consult an authorised financial adviser or other person authorised under the UK Financial Services and Markets Act 2000. To the best of Cat Rock Capital’s ability and belief, all information contained herein is accurate and reliable, and has been obtained from public sources that Cat Rock Capital believes to be accurate and reliable. However, such information is presented “as is”, without warranty of any kind, whether express or implied, and Cat Rock Capital has not independently verified the data contained therein. All expressions of opinion are subject to change without notice, and Cat Rock Capital does not undertake to update or supplement any of the information, analysis and opinion contained herein. This announcement, and its content, distribution and use, is subject to the terms specified at www.JustEatMustDeliver.com.
FORWARD LOOKING STATEMENTS
This announcement contains certain forward-looking statements and information that are based on Cat Rock Capital’s beliefs, as well as assumptions made by, and information currently available to, Cat Rock Capital. These statements include, but are not limited to, statements about strategies, plans, objectives, expectations, intentions, expenditures and assumptions and other statements that are not historical facts. When used herein, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan” and “project” and similar expressions (or their negative) are intended to identify forward-looking statements. These statements reflect our current views with respect to future events, are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Further, certain forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Actual results, performance or achievements may vary materially and adversely from those described herein. There is no assurance or guarantee with respect to the prices at which any securities of Just Eat Takeaway.com or any other company will trade, and such securities may not trade at prices that may be implied herein. Any estimates, projections or potential impact of the opportunities identified by Cat Rock Capital herein are based on assumptions that Cat Rock Capital believes to be reasonable as of the date hereof, but there can be no assurance or guarantee that actual results or performance will not differ, and such differences may be material and adverse. No representation or warranty, express or implied, is given by Cat Rock Capital or any of its officers, employees or agents as to the achievement or reasonableness of, and no reliance should be placed on, any projections, estimates, forecasts, targets, prospects or returns contained herein. Neither Cat Rock Capital nor any of its directors, officers, employees, advisers or representatives shall have any liability whatsoever (for negligence or misrepresentation or in tort or under contract or otherwise) for any loss howsoever arising from any use of information presented in this announcement or otherwise arising in connection with this announcement. Any historical financial information, projections, estimates, forecasts, targets, prospects or returns contained herein are not necessarily a reliable indicator of future performance. Nothing in this announcement should be relied upon as a promise or representation as to the future. Nothing in this announcement should be considered as a profit forecast.
In relation to the United Kingdom, this announcement is being issued only to, and is directed only at, (i) investment professionals specified in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 as amended (the “Order”), (ii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order and (iii) persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities of Just Eat or any member of its group may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as “Permitted Recipients”). Persons who are not Permitted Recipients must not act or rely on the information contained in this announcement.
Not for release, publication or distribution, in whole or in part, directly or indirectly, in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws of that jurisdiction. The distribution of this announcement in certain countries may be restricted by law and persons who access it are required to inform themselves and to comply with any such restrictions. Cat Rock Capital disclaims all responsibility where persons access this announcement in breach of any law or regulation in the country of which that person is a citizen or in which that person is residing or is domiciled. Cat Rock Capital is subject to supervision by, and registered with, the U.S. Securities and Exchange Commission.
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
About Business Wire
(c) 2018 Business Wire, Inc., All rights reserved.
Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Zilliant Announces Significant Growth in Europe2.12.2021 09:30:00 CET | Press release
Zilliant, the industry leader in intelligent B2B price optimization, price management and sales guidance software, today announced significant growth in Europe, marked by compound annual revenue growth of 55% from 2018-2021 as well as significant growth of new customers. “B2B company leaders are increasingly seeking alternatives to the traditional means of managing prices and enabling sales teams,” said Zilliant President and Chief Executive Officer Greg Peters. “Tying strategy to effective execution can be even more difficult for companies in Europe, particularly in global, multi-country businesses. Our growth in the region can be attributed to the increased breadth of our product portfolio, addressing the full spectrum of pricing challenges in B2B, and our passion for powering intelligent commerce for our customers.” Zilliant maintains offices in Paris, London, Milan, Italy, and Walldorf, Germany. In recent years, a wide variety of B2B companies in Europe with worldwide operations ha
Hopp Secures $2.8 Million Funding From Brunnur Ventures to Build a Global Sustainable Micromobility Sharing Franchise2.12.2021 09:27:00 CET | Press release
Hopp (www.hopp.bike),the sustainable electric scooter rental company, is pleased to announce an investment by Brunnur Ventures of $2.8 million into the company to drive international growth of its worldwide franchise strategy. Hopp is the sustainable transportation solution for the world’s modern city enabling riders to travel without leaving a carbon footprint. Hopp's primary mission is to leave behind a cleaner planet, one ride at a time, with all parts of the business carbon negative. Hopp is uniquely focused on smaller cities, local travel and smaller fleets – an almost untouched market as more than 95% of cities in Europe with less than 500,000 inhabitants are currently unserved. “Our goal is to influence the electric scooter market in the same way as McDonald’s for the hamburger,” commented CEO Eythór Steinarsson. “We want to bring this technology to smaller cities where there is a big opportunity and to get locals to work with us. We want to bring the sharing economy to the way
Bitcoin Capital Expands its Crypto Asset Offering2.12.2021 09:11:00 CET | Press release
Bitcoin Capital announced today that it has again listed two world firsts on the SIX Swiss Exchange. With 1 FiCAS Active Bitcoin ETP and 1 FiCAS Active Ethereum ETP, the company has launched two products actively managed by the highly experienced crypto asset manager FICAS AG. With active management, the products aim to counter negative price fluctuations and therefore outperform the two largest cryptocurrencies by capitalization. With the listing, institutional, professional, and private investors in Switzerland, Liechtenstein, and the European Union (excluding Hungary) can easily invest in the new products via their bank or broker, just as they do with other listed financial investments such as equities or bonds. "Our purpose is to grant investors safe and easy access to digital assets and are convinced that crypto assets will soon be part of the diversification strategy of many investment portfolios. The two new products with the most relevant cryptocurrencies as underlying may, thr
Ricardo Announces Approved Science-based Targets as We Advance Towards Net Zero2.12.2021 09:00:00 CET | Press release
Ricardo, a world-class environmental, engineering and strategic-consulting company, is pleased to announce that our proposed greenhouse gas emissions reduction targets have been approved by the Science Based Targets initiative (SBTi) and that they are in line with the goals set forth in the 2015 Paris Agreement. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211202005044/en/ Ricardo is pleased to announce that proposed greenhouse gas emissions reduction targets have been approved by the Science Based Targets initiative (Graphic: Business Wire) The Science Based Targets initiative (SBTi) is a collaboration between the CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). We now join a growing group of global businesses that have received approval of their targets, ensuring that greenhouse gas emissions from Ricardo’s operations (scopes 1 and 2)1 are consistent with t
Eurofins Technologies Launches Wastewater Diagnostic Kit for SARS-CoV-2 Testing Including Identification of Omicron Variant2.12.2021 09:00:00 CET | Press release
Eurofins Technologies announces the launch of the VIRSeek SARS-CoV-2 Mplex I and Mplex II Wastewater real-time RT-PCR kits to provide an efficient solution for SARS-CoV-2 detection in wastewater, including the Omicron variant of concern. Wastewater-based epidemiology has become an important approach in order to comprehensively monitor the profile of SARS-CoV-2 infections in highly populated areas. Methods to detect SARS-CoV-2 viral RNA in untreated wastewater have advanced over the last number of months. Data has shown that concentrations of viral RNA correlate with trends in reported COVID-19 cases, demonstrating the importance of wastewater testing as a public health tool. The European Commission has recommended1 the implementation of effective systems for the surveillance of SARS-CoV-2 in wastewater. The VIRSeek SARS-CoV-2 Mplex I and Mplex II Wastewater real-time RT-PCR kits delivers an effective solution for SARS-CoV-2 detection in wastewater. The VIRSeek SARS-CoV-2 Wastewater kit
BMC TV delivers Paralympic coverage to UK with ADVA FSP 1502.12.2021 09:00:00 CET | Press release
ADVA (FSE: ADV) today announced that BMC TV deployed its FSP 150 Carrier Ethernet technology to transport coverage of the Paralympic Games from Tokyo to London. The robust, low-power solution empowered BMC TV to cost-effectively provide highly reliable services, enabling hundreds of hours of live broadcasting on high-definition television and online streams. The close support of ADVA’s team, together with the ease of use of its FSP 150 device, helped to ensure the success of the project. Fiber optic solutions provider Fibre Technologies also played a key role. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211202005059/en/ ADVA’s FSP 150 technology helped BMC TV bring coverage of the Tokyo Paralympics to an audience of over 20 million people. (Photo: Business Wire) “We’re proud to have helped bring high-quality coverage of the Paralympics to a UK audience of over 20 million. By harnessing ADVA’s edge Ethernet equipment, we w
CSC Global Financial Markets Expands its Depositary Services in the Netherlands with New Licenses for UCITS; Alternative Funds License Broadened2.12.2021 09:00:00 CET | Press release
CSC, the world’s leading provider of business, legal, tax, and digital brand services, has secured extra depositary licenses from the Netherlands Authority Financial Markets (AFM). After being one of the first nonbank depositaries to receive a depositary license for real estate and infrastructure funds, CSC has now extended its license to include undertakings collective investment in transferable securities (UCITS) funds. In addition, CSC’s alternative funds license has been extended to include the following asset classes—financial instruments, private equity, private debt, and shipping. “We’re delighted that our depositary services now cover an extensive list of investment strategies in the Netherlands. The addition of UCITS funds license is a major milestone in the history of CSC in the Netherlands. The market response is extremely positive and we are already onboarding our first UCITS fund manager,” says Mascha Hartskeerl, head of depositary services for CSC Global Financial Markets