By Steve Goldstein, MarketWatch
Just Eat Takeaway shares rallied on Thursday after reporting that orders have recovered in key European markets, following a brief dip when the coronavirus shutdowns first started.
The firm /zigman2/quotes/216303066/delayed UK:JET +0.51% surged nearly 9% as the food delivery company’s Takeaway.com business said orders in most of its major markets, including the Netherlands, Germany and Poland, have recovered after an initial drop in mid-March. In the middle of March, it also was hit by a denial-of-service attack.
Management says it still expects positive earnings before interest, taxes, depreciation, and amortization for the first half.
The “trading update comes as a relief with evidence that the impact of ubiquitous European lockdowns had unwound by the end of March. More an I-shaped recovery than a V-shaped! Indeed, we see positive longer-term implications from the accelerated change in behavior from the virus,” said Giles Thorne, an analyst at Jefferies.
The company didn’t provide an update on the Just Eat business as the U.K. Competition and Markets Authority review of its merger is due to be completed by May 19.
The broader FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -2.29% advanced 0.9%, after the sizzling Wall Street rally from Wednesday, amid growing optimism when economies can be reopened. In the U.K., the lockdown is expected to be extended.
Elsewhere, Diageo /zigman2/quotes/205611832/delayed UK:DGE -5.53% rose 2.5% as the alcoholic beverage maker halted its stock buyback and withdrew its financial guidance but said it would go ahead with a dividend payment planned for April.
U.K. home builder Redrow /zigman2/quotes/206663416/delayed UK:RDW -5.79% rose nearly 5%. It said it has been confirmed as an eligible issuer for the Bank of England’s COVID Corporate Financing Facility with an issuer limit under the facility of £300 million, which is currently undrawn. Negotiations for the additional £100 million of headroom under the group’s existing revolving credit facility are expected to be concluded by the end of April, which will take the facility to £350 million.