SHARE OF THE WEEK: Deliveroo set to provide an answer to investor worries that the cost of living crisis has taken a bite out of takeaway orders
Deliveroo will provide an answer to investor worries that the cost of living crisis has taken a bite out of takeaway orders.
The London-based food delivery app business is set to update shareholders next Thursday with its full-year results for 2022.
Its results will reveal if consumers reined back spending on takeaways in the face of living cost pressures after the invasion of Ukraine.
Households have been forced to grapple with soaring energy and grocery bills since the war broke out last year.
Delivery and takeaway businesses have also seen declining sales in recent months as post-pandemic behaviours go back to normal.
Businesses like Just Eat Take-away and Deliveroo saw booming sales during Covid lockdowns but have suffered a dip in demand since restaurants and offices reopened.
Investors will be hungry to hear more about bosses’ laborious pursuit of making the tech firm profitable.
At a recent quarterly update, Deliveroo said it broke even and expected to turn a profit in 2023.
Founder and chief executive Will Shu explained a slew of job losses by claiming Deliveroo needed to ‘go further’, as it hunkered down on profitability.
Last month, the company said it would slash around 350 jobs, about 9 per cent of its workforce, with the UK set to be worst hit by the redundancies.
Deliveroo’s share price has tanked 20 per cent over the past year after it floated in March 2021.