Just Eat signs delivery deal with McDonald’s
Just Eat has announced plans to partner with McDonald’s as the takeaway delivery business ramps up its brand-focused growth strategy.
The company, which has agreed a merger with Takeaway.com, revealed the deal as it reported trading in line with expectations for the past year.
It said underlying earnings for 2019 were around £200 million, with group orders of around 254 million and revenue of approximately £1 billion.
The company said this means earnings will be towards the top end of its forecast range for the year.
Just Eat saw UK sales jump 8% during the year as it secured more branded delivery partners.
It will now work with McDonald’s in the UK and Ireland, becoming the US takeaway giant’s second delivery partner in the UK after rival Uber Eats.
Just Eat said the delivery service will be implemented during 2020 and comes after McDonald’s hailed strong uptake since it first launched a delivery service.
The delivery group has also recently signed deals with partners including Greggs, KFC and Burger King, after previously focusing on independent takeaway operators.
Peter Duffy, Just Eat’s interim chief executive, said: “We are pleased to confirm underlying earnings 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.”
The update comes days after the competition regulator announced it would investigate Just Eat’s £6 billion merger with Dutch firm Takeaway.
Cat Rock Capital, which owns 3% of Just Eat’s shares and 6% of Takeaway’s, heavily criticised the inquiry which it said was “shocking and clearly unwarranted”.