There is a massive battle for companies to deliver my food.
Here is the landscape today:
Grubhub is already public and while the stock has struggled of late, it had a great run from 2016 to 2018.
The story this week is that Postmates is deciding if they can get public on their own or should sell to Walmart, Uber Eats or DoorDash and Recode covered the story.
I’m 53 and have never used ANY of the services including Uber Eats. I am not the market.
My kids love using all these services.
Looking at the large restaurant stocks, I believe McDonald’s has been the biggest beneficiary of the trend because young people recognize the McDonald’s brand when they open the food delivery apps.
Starbucks has done a fantastic job with their mobile app and this weekend I have watched my friend Ryan use it to order his large iced coffees 7 minutes before he gets to the store and than run in and grab it from the counter.
Domino’s has been the best performing restaurant stock because they embraced mobile the quickest and controls their own delivery service.
I would stick with the restaurant stocks and avoid the food delivery stocks.
As a McDonald’s shareholder, I hope a few of these survive and thrive.