Wall Street Orders Up GrubHub in Market Debut

Wall Street appears to be in the mood for takeout. Investors sent shares of GrubHub Inc. up nearly 50 percent in early trading after an initial public offering that valued the online food ordering service at more than $2 billion.

GrubHub and its rivals are changing the way people order takeout from restaurants. Instead of calling a restaurant, people can order meals online or through a few taps on a smartphone app, and can search through many restaurants at once by cuisine or other specifications.

GrubHub makes money by taking a percentage of each order. The company doesn't say how much it charges, but restaurant owners have said it's about 15 percent. The more that a restaurant pays, the higher it appears in GrubHub's listings.

The company also owns Seamless, another online takeout company. GrubHub and Seamless merged in August, and both still operate separately. After the merger, the company named itself GrubHub Seamless, but has since dropped Seamless from its name. It also owns Allmenus.com and MenuPages, which posts menus from restaurants across the country.

GrubHub said it had revenue of $137.1 million in 2013, up 67 percent from the year before.

The Chicago company raised $192.5 million after pricing more than 7.4 million shares at $26 per share. That's above the company's previously expected range between $23 per share and $25 per share.

The stock is trading on the New York Stock Exchange under the ticker symbol "GRUB."

In morning trading, shares rose $12.70, or 49 percent, to $38.70.

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