Just Eat shareholder Cat Rock Capital Management LP has called on management of the online food order and delivery company to sell businesses and align executive pay to financial targets.
The US hedge fund, which owns about 2% of Just Eat, asked Just Eat to present a three-year financial plan before its shareholder meeting in May and consider selling its stake in online food delivery platform iFood.
Sliding Shares
Just Eat has grown rapidly since it floated in 2014 but its shares have slid more than 25% this year amid repeated warnings that its expenses would increase, as it fights rivals Deliveroo and Uber Eats in markets ranging from Canada to Australia and the UK.
Selling its iFood stake could fetch as much as £650 million, Cat Rock said.
"We are concerned that the slow pace of planning and decision-making at Just Eat will not only continue to destroy shareholder value but will also result in competitors eroding Just Eat's leading market position," Cat Rock said.
Just Eat said it has a "clear strategy in place to deliver long-term sustainable value" for its shareholders.
Forecasts And Investment Strategy
The company last month forecast revenue towards the top end of its range, but warned that full-year core earnings would come in towards the lower end of forecasts due to higher-than-expected investment in Brazil and Mexico.
Analysts said then they backed the group's strategy to keep investing as the market develops rapidly around the world..
The FTSE 100 company, founded in Denmark in 2001 by five entrepreneurs, now operates in 12 markets with over 2,900 employees.
Sidley Austin LLP is legal adviser to Cat Rock Capital.
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