Shares of online food-delivery company Grubhub surged more than 23 percent Thursday after the company reported stronger-than-expected quarterly results. Grubhub also said Yum Brands would 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 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.
Grubhub also announced that Yum Brands — which owns Taco Bell, KFC, and Pizza Hut, among other restaurant chains — would buy a 3 percent stake in the company worth about $200 million.
“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.