Just Eat Takeaway: Disappointing Q1 Volumes; UK & Ireland Ahead and Unchanged Fiscal 2024 Guidance

Just Eat Takeaway reported a first-quarter trading update, with gross transaction value, or GTV, down 2% in constant currency. Management reiterated its outlook for 2024 adjusted EBITDA to be around EUR 450 million, versus EUR 449 million in our model, and constant-currency GTV growth excluding North America in the range of 2% to 6% year on year, versus 3.4% in our model (down 0.7% including North America in our model). The company also expects free cash flow to remain comfortably positive, especially given the expectation for higher profitability, which is in line with our expectations. Just Eat Takeaway has completed the EUR 150 million share buyback program initiated in April and is in the process of completing a second buyback program, having repurchased cumulatively 8.9% of issued shares. Regionally, volumes were particularly disappointing in Southern Europe and Australia (down 16%) as well as North America (down 12%), with volumes in Northern Europe affected by the weak macro environment.