Grubhub’s stock is up 27% after blowing away Wall Street estimates

GrubHub CEO Matt Maloney (C) applauds after ringing the opening bell before the company’s IPO on the floor of the New York Stock Exchange in New York April 4, 2014. Shares of GrubHub Inc, the biggest U.S. online food-delivery service, rose as much as 57 percent in its market debut as investors scrambled for a piece of the fast-growing consumer internet company.
REUTERS/Lucas Jackson

After five rough quarters, Grubhub might finally be on the rise.

The food delivery company’s stock is up more than 27% this morning, trading at $39.17 per share.

Grubhub’s second-quarter revenue increased 37% year-over-year to $120.2 million. Earnings, excluding certain items, were 23 cents per share, ahead of Wall Street estimates of 19 cents per share.

That’s quite a difference from the last few years, where Grubhub has seen its order growth rapidly decline in the face of mounting competition from food delivery companies UberEATS and Postmates.

According to analysts at Cowen and Company, Grubhub’s strong second quarter was driven by a better tech platform and mobile app, a better selection of couriers and higher spending in advertising.

Cowen and Company