Case: Grubhub, Inc.
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NEW YORK, NY – October 29, 2019 – Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors who purchased shares of Grubhub Inc. (“Grubhub” or the “Company”) (NYSE: GRUB).

On July 30, 2019, Grubhub issued a press release reporting its second quarter 2019 results for the quarter ending June 30, 2019, including a 16% year-over-year increase in Daily Active Grubs (“DAGs”).  During the conference call that followed, Grubhub’s President and CFO, Adam DeWitt, stated, among other things that the 16% growth was “a good baseline for the organic growth. . . .”

On October 28, 2019 after the market closed, Grubhub reported its third quarter 2019 results and published a letter to shareholders, stating among other things as follows:

“In August, overall DAG growth began trending noticeably lower than our expectations.  As we dug into the data, we saw that our newer diners, particularly those in our newer markets, were not driving as many orders as we expected at that point in their lifecycle. . . .

We spent a fair amount of time digging into the causes of these dynamics.  What we concluded is that the supply innovations in online takeout have been played out and annual growth is slowing and returning to a more normal longer-term state which we believe will settle in the low double digits, except that there are multiple players all competing for the same new diners and order growth. [Emphasis added.]

Furthermore, we believe online diners are becoming more promiscuous.  For years, we saw in our data that a Grubhub diner was extremely loyal to our platform.  However, our newer diners are increasingly coming to us already having ordered on a competing online platform, and our existing diners are increasingly ordering on multiple platforms. . . . We believe this competitive dynamic had a 300+ bps impact on our growth rate for the third quarter.”

On October 29, 2019, following the Company’s disclosures of slowing growth, Grubhub’s shares fell by $25.28 per share, over 43%, to close at $33.11 per share.

If you purchased Grubhub shares and would like to discuss our investigation, please contact us by emailing This e-mail address is being protected from spambots. You need JavaScript enabled to view it or by calling 800-290-1952.  

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.  If you have any questions about your rights or interests, please contact: 

Frederic S. Fox
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400 
San Francisco, California  94104
(415) 772-4700
Fax:  (415) 772-4707
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