Grubhub says the online food-ordering and delivery business is slowing.
The Chicago-based company missed analyst expectations for sales and profit in the latest quarter. And it didn’t offer guidance for the coming year.
Shares fell about 40% Tuesday afternoon to around $33.
In a letter to investors, Grubhub says new customers are less loyal and that they’re not ordering as often as diners used to in markets like Chicago and New York.
In other Chicago business news:
The real estate firm redeveloping the Old Post Office has added more than $100 million of debt to the project after a leasing hot streak.
They’ll spend the money to accelerate rehabbing more of the space.
Since its original $500 million construction loan, 601W has leased up most of the building at a faster rate than it thought it would.
The project is set to open its doors later this week.
Finally, Zebra Technologies has landed a contract with the U.S. Postal Service worth more than half a billion dollars.
The Lincolnshire-based maker of barcode scanners will supply more than 300,000 of the handheld devices to the Postal Service, which is grappling with the real-time demands of e-commerce, and competitors like FedEx and UPS.
The deal is valued at $570 million.
Crain’s Headlines is a joint production between WTTW and Crain’s Chicago Business. It airs every Monday through Thursday on the WTTW News program “Chicago Tonight.”