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Just Eat says investment in Brazil and Mexico to hit earnings

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Just Eat says investment in Brazil and Mexico to hit earnings

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LONDON (Reuters) - Britain's Just Eat <JE.L> said higher than expected investments in Brazil and Mexico would push full-year core earnings towards the lower end of its forecasts, wiping out the benefit of higher sales at the FTSE 100 takeaway group.

Just Eat has grown rapidly since it floated in 2014 but it has spooked investors this year by repeatedly increasing the amount it is spending to keep ahead of rivals Deliveroo and Uber Eats.

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It said on Thursday it now expected full-year revenue to be towards the top end of the 740 million pound to 770 million pound range, but with underlying core earnings at the lower end of the 165 million pound to 185 million pound range.

"The group has delivered another strong quarter as we helped our 97,000+ restaurant partners serve over 54 million takeaways to millions of hungry customers," Chief Executive Peter Plumb said.

Founded in Denmark in 2001 by five entrepreneurs, Just Eat's platform connects customers with local takeaway restaurants which generally provide their own delivery service, unlike competitors Deliveroo and Uber Eats.

As the market has developed however, Just Eat has trialled using its own delivery riders in some key markets including Britain, increasing the amount if needs to spend.

(Reporting by Kate Holton; Editing by Susan Fenton and Sarah Young)

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