Post-close Trading Update and new McDonald's partnership
Just Eat plc ("Just Eat" or the "Group"), a leading global hybrid marketplace for online food delivery, is today providing a post-close trading update for the year ending 31 December 2019, and announcing that it has agreed to partner nationwide with McDonald's in the UK and Ireland.
2019 concluded in line with the Board's expectations. We now expect to report uEBITDA of around £200 million, with group orders of 254 million and revenue of approximately £1.0 billion. UK order growth in 2019 was 8%. Order growth in our other markets during Q4 followed similar trends to those seen in Q3 2019, with good momentum in Australia, Italy and Switzerland and continued strong growth in Canada.
We have agreed to partner nationwide with McDonald's in the UK and Ireland which will see Just Eat becoming McDonald's second exclusive delivery partner for McDelivery. The partnership will be implemented during 2020. McDelivery has proved extremely popular with customers in the UK and Ireland since its launch in 2017 and 2018 respectively.
This follows the successful roll-out of Just Eat's delivery capability in the UK, with broad geographic coverage being an essential prerequisite to partnership, and also follows the announcement of the partnership with Greggs.
Peter Duffy, Just Eat's Interim CEO, said:
"We are pleased to confirm uEBITDA 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. 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."
* 2019 uEBITDA includes the negative impact from the acquisitions of Flyt, Practi and City Pantry which is expected to be approximately £10m
* Guidance range for 2019 revenue and uEBITDA was £1.0-1.1bn and £185 - £205m.