Shares of online food-delivery company Grubhub surged more than 27 percent Thursday after the company reported stronger-than-expected quarterly results.
Grubhub, which provides an online and mobile platform for restaurant pick-up and delivery orders, also said Yum Brands will buy a 3 percent stake in the company.
Grubhub reported adjusted fourth-quarter earnings of 37 cents a share on revenue of $205.1 million. Analysts polled by Thomson Reuters had forecast a profit of 31 cents per share on revenue of $201.7 million.
Active diners, a key metric for the company, rose to 14.46 million last quarter from 9.81 million in the third quarter. Analysts polled by FactSet expected active diners to total 11.53 million.
Yum Brands’ 3 percent stake in the company worth about $200 million. Yum owns chains including Taco Bell, KFC and Pizza Hut. As part of this partnership, a Yum executive will join GrubHub’s board.
“The partnership with Yum! which we announced this morning will accelerate the expansion of our delivery network and amplify our diner acquisition efforts, raising consumer awareness of online ordering and driving more volume for all restaurants across our platform,” Grubhub CEO Matt Maloney said in a statement.