Business Maverick: DoorDash Beats Sales Estimates on Resilient Food-Delivery

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DoorDash Inc. reported first-quarter revenue that beat analysts’ estimates, reflecting the sustained demand in food delivery even as restaurants begin to reopen and more people get vaccinated. The shares jumped about 7% in extended trading.

Sales increased 198% in the three months ended March 31, the company said in a statement Thursday. Revenue totaled $1.1 billion, surpassing Wall Street’s expectations.

DoorDash has increased its footprint in the sector by pushing into categories like grocery and convenience items and through its launch of Storefront, an online ordering product that helps restaurants create their own websites for pickup and delivery. Though DoorDash boosted its full-year outlook for gross order value to $35 billion-$38 billion it took a cautious stance. “We expect the combination of summer seasonality, market reopenings, and the waning impact of stimulus to result in some impact to our business in the near term,” the company wrote in a letter to shareholders.

 

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