Grubhub (GRUB) is up 30% at a new all-time high after the company reported fourth quarter results above guidance, foretasted first quarter and fiscal 2018 results in-line with expectations and announced a partnership with Yum! Brands (YUM), which included a $200 million investment from the fast food chain.
Grubhub continues to perform really well as the nation's leading takeout market place. Revenue was up 49% to $205 million versus $197-205 million guidance. Daily Average Grubs were up 34% to 392,500; active diners were up 77% to 14.5 million. Adjusted EBITDA was up 45% to $57 million versus $51-56 million guidance.
The company guided 2018 revenue up 37% at the midpoint to $910-960 million with EBITDA up 30% at the midpoint to $240 million. Fiscal 2018 and Q1 guidance was mostly in-line with Wall Street estimates.
Grubhub also announced a partnership with Yum! Brands (YUM), the owner of KFC and Taco Bell. Yum! invested $200 million in Grubhub to help accelerate the company's expansion of its industry-leading U.S. delivery network, drive more orders to YUM restaurants, and further enhance the ordering and delivery experience for diners, restaurants and drivers.
Grubhub has a market cap approaching $8 billion and trades at ~8x sales or 30x EBITDA guidance for the year.