28th Jan 2020 08:27
(Alliance News) - Online takeaway platform Just Eat PLC said Tuesday it has signed an agreement with US fast food giant Mcdonald's Corp to become its second delivery partner in the UK and Ireland.
Just Eat said the partnership will be rolled out during 2020.
"McDelivery has proved extremely popular with customers in the UK and Ireland since its launch in 2017 and 2018 respectively," Just Eat said.
McDonald's is currently available for delivery in the UK and Ireland through Uber Technologies Inc's food delivery business Uber Eats.
Interim Chief Executive Peter Duffy said: "We are delighted to announce that we have agreed to partner in the UK and Ireland with McDonald's. This partnership, along with our recently announced relationship with Greggs, will require significant investment but will accelerate our growth ambitions and enhance our market position by offering our customers the widest choice available."
Turning to its trading, Just Eat said 2019 ended in line with internal expectations.
The company expects to report underlying earnings before interest, tax, deprecation and amortisation of around GBP200 million. In 2018, underlying Ebitda came in at GBP173.9 million.
Just Eat also expects group orders of 254 million and revenue of about GBP1.0 billion. In 2018, group orders totalled 221.2 million, which generated GBP779.5 million in revenue.
UK order growth in 2019 came in at 8%.
"Order growth in our other markets during the fourth quarter followed similar trends to those seen in the third quarter of 2019, with good momentum in Australia, Italy and Switzerland and continued strong growth in Canada," Just Eat added.
Duffy said: "We are pleased to confirm underlying Ebitda towards the top end and revenue broadly in line with the guidance range we provided at the start of 2019, notwithstanding the significant developments during the year."
Shares in Just Eat were 0.8% higher in London on Tuesday morning at 862.00 pence each. McDonald's ended 0.9% lower in New York on Monday but shares rose marginally higher in after-hours trading to USD209.40.
Just Eat is set to merge with Dutch peer Takeaway.com but completion of the deal has been delayed as the UK competition watchdog looks into it.
Last Thursday, the UK Competition & Markets Authority was reconsidering its position on the merger. The CMA on Friday confirmed it will be looking into whether the combination would lessen competition in the UK takeaway platform sector. The invitation for comment closes on February 6.
Just Eat and Takeaway.com had originally envisaged the new, enlarged company would start trading in London on Monday, and the name was to be changed to Just Eat Takeaway.com NV on Friday last week.
However, due to the CMA move the timetable has been delayed by a week and the new company will be renamed this coming Friday and start trading on Monday next week.
By Paul McGowan; [email protected]
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