SHARE OF THE WEEK: Deliveroo set to respond to investors who are concerned that the cost of living crisis has cut take-out orders
Deliveroo will provide a response to investors who fear the cost of living crisis will affect take-out orders.
The London-based food delivery app company is expected to inform shareholders next Thursday of its 2022 annual results.
Its findings will reveal whether consumers held back on takeout spending in the face of cost-of-living pressures following the invasion of Ukraine.
Since war broke out last year, households have been forced to deal with rising energy and grocery bills.
Delivery and takeaway businesses have also seen a drop in sales in recent months as post-pandemic behavior returns to normal.
Companies like Just Eat Take-away and Deliveroo have seen sales soar during the Covid shutdowns, but have suffered a drop in demand since restaurants and offices reopened.
Investors will be eager to learn more about the bosses’ painstaking efforts to make the tech company profitable.
In a recent quarterly update, Deliveroo said it had broken even and expected to turn a profit in 2023.
Founder and chief executive Will Shu explained a slew of job losses by saying Deliveroo needed to “go further” as it looked at profitability.
Last month the company said it would cut around 350 jobs, or around 9% of its workforce, with the UK expected to be hit hardest by the layoffs.
Deliveroo’s share price has fallen 20% in the past year after its March 2021 listing.