Yahoo Finance Just Eat delivering itself back into London's FTSE 100 index
Just Eat is delivering itself back into London’s FTSE 100 after getting booted from the benchmark index late last year.
Britain’s popular food delivery service is set to formally re-enter the FTSE 100 (^FTSE) on Monday morning, according to the global index compiler, FTSE Russell, which is a subsidiary of the London Stock Exchange (LSE.L). The move is part of a semi-regular reshuffle that kicks out shrinking companies and brings in growing firms.
Just Eat will be joined by the insurer Phoenix Group Holdings (PHNX.L), which is also slated to enter the FTSE 100 on Monday. They are replacing GVC Holdings (GVC.L) and Wood Group (WG.L).
The FTSE 100 tracks the 100 largest companies traded in London, though many of these firms are multinational giants with the majority of their sales in international markets. The FTSE 250 (^FTMC) tracks the next 250 companies that are traded in London and have missed the valuation cut-off mark. These mid-sized companies are known for having more of their sales and operations on British soil.
“Just Eat reported a 43% increase in revenues last year, and it’s successive years of that sort of growth that’s earnt it a place at the top table,” according to Nicholas Hyett, an equity analyst at investment service provider Hargreaves Lansdown.
Just Eat (JE.L) is on a bumpy road after losing its CEO in January amid calls for change from US hedge fund Cat Rock Capital Management.
The company is also up against tough competition in the food delivery space, facing off against the likes of Uber Eats and Deliveroo.
“It’s a turf war, and it comes at a cost, with all the operators investing heavily in their new services,” Steve Clayton, a fund manager at Hargreaves Lansdown, said.
Just Eat is valued at around £5bn ($6.6bn). Shares in the company have shot up by more than 150% over the past five years. But the stock cratered last year and is still down about 10% since peaking in early 2018.
FTSE Russell said other companies that could soon join the FTSE 100 include JD Sports Fashion (JD.L) and Aveva Group (AVV.L).
