Grubhub saw its average daily orders jump 32% in the second quarter but swung to a loss as it spent heavily to prop up restaurants and protect drivers as the pandemic shut in consumers.
The Chicago-based restaurant delivery company lost $45 million in the April-June period, down from a profit of $1.3 million in the same period a year ago. Adjusted for one-time items, the company lost 17 cents per share, which was in line with Wall Street’s expectations, according to analysts polled by FactSet.
The earnings report is one of Grubhub’s last as a standalone company. Grubhub announced a last month. The deal is expected to close in the first quarter of 2021.
Grubhub Inc. said second-quarter revenue jumped 41% to $459 million as more diners chose to get delivery. But Grubhub founder and CEO Matt Maloney said the company spent $100 million on coronavirus-related costs, including cutting fees to restaurants and distributing protective equipment to its drivers.
Grubhub Inc. handily beat analysts’ forecast of $405 million in revenue.