SHARE OF THE WEEK: Deliveroo set to respond to investor concerns that the cost of living crisis has taken a bite out of takeout orders
Deliveroo will address investor concerns that the cost of living crisis has taken a bite out of takeaway orders.
The London-based food delivery app company will update shareholders this Thursday with full-year results for 2022.
The results will show whether consumers have reduced their spending on takeaways despite pressure on the cost of living following the invasion of Ukraine.
Since the outbreak of war last year, households have been battling sky-high energy and grocery bills.
Delivery and takeaway businesses have also seen falling sales in recent months as post-pandemic behavior returns to normal.
Businesses such as Just Eat Take-away and Deliveroo enjoyed high sales during the Covid lockdowns, but have faced a drop in demand since restaurants and offices reopened.
Investors will be hungry to hear more about bosses’ struggles to make the tech company profitable.
In a recent quarterly update, Deliveroo said it is breaking even and expected to turn a profit in 2023.
Founder and CEO Will Shu explained a slew of job cuts by claiming Deliveroo “needed to move on” as it looked down on profitability.
Last month, the company said it would cut around 350 jobs, about 9 percent of its workforce, with the UK set to be the hardest hit by the layoffs.
Deliveroo’s share price has fallen 20 percent over the past year after going public in March 2021.