In this April 4, 2014 file photo, a sign for GrubHub is displayed on the door of a New York restaurant.Shares in Grubhub are down more than 30% after it sharply cut its revenue expectations for the year and warned of intense competition.
The steep decline in share price wiped away almost $2 billion of the company’s valuation in the public market at the opening bell. In a letter to shareholders the company said, “supply innovations in online takeout have been played out” and that annual growth is slowing to a longer-term rate of low double digits.The Chicago food delivery company cut its fourth-quarter revenue projections to between $315 million and $335 million and forecast earnings of between $15 million and $25 million.Executives will speak with industry analysts Tuesday in a conference call.