...June 12, 2024 Grubhub Inc.'s free operating cash flow (FOCF) remains negative, but the company is closer to stemming declines. The company's pivot in 2022, to focus on profitability over market share growth is ongoing. During 2023 and the first quarter of 2024, order volumes decreased 14% and 12%, respectively. This weighed on its topline, which declined about 10% and 7%, respectively. The profitability and FOCF improvement were favorable, albeit both remained negative. The company implemented several profitability initiatives including headcount reductions, improving efficiency in delivery, and reducing development expenses to stem the rate of its free cash flow deficits. The company's relationship with Amazon presents more opportunities than risk. We believe Grubhub's five-year deal with Amazon, integrating its platform into Amazon's mobile app and website, is an extension of its efforts to grow the customer base, drive down customer acquisition costs, and generate positive free cash...
