GrubHub’s Expansion: Are Its Eyes Too Big for Its Stomach?

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GrubHub Inc. (NYSE: GRUB) shares pulled back to kick off the week after the company announced that it would be expanding its business. However, it’s worth mentioning that GrubHub has been no stranger to growing its business, as its stock has tripled in the past year alone.

The company has expanded its delivery capabilities to 34 more markets across 19 states. The expansion was completed throughout the first quarter of 2018 and is part of GrubHub’s plan to grow its delivery network to reach more than 100 new markets this year.

Ultimately, these cities are joining the more than 80 markets throughout the United States that already have GrubHub Delivery capabilities, which allow restaurants to offer their menus for delivery and provide diners with better restaurant choice and variety.

Restaurants partnering with GrubHub for delivery include national and regional options like Buffalo Wild Wings, BJ’s Restaurants & Brewhouse, Red Robin Gourmet Burgers and Brews, On the Border and Cheesecake Factory in many markets. As Yum Brands’ only national partner for ordering and delivery, GrubHub also will be adding KFC and Taco Bell locations to these markets across the country in the coming months.

Stan Chia, the chief operating officer of GrubHub, commented:

We’re thrilled to expand our delivery offering to these markets across the U.S., making quick progress on our plan to expand our delivery capabilities throughout the coming year. These additional markets are part of our vision to connect more diners with even more of their favorite local restaurants across the country, and provide them with the widest selection of choice wherever they are.

Shares of GrubHub were last seen down almost 3% at $98.62, with a consensus analyst price target of $96.52 and a 52-week range of $32.43 to $112.41.