As the country continues to battle coronavirus,
cities, including San Francisco, and likely by the time you read this, New
York, will have issued shelter in place orders. This means people living in
these places, which totals well into the millions, should simply stay
I’ve talked a lot in the past few weeks about
the “at home” stocks, whether it’s working from home, or simply doing
activities at home that you might normally do elsewhere.
The shelter in place orders have taken this to a
new level. And, while temporary, these actions by federal, state, and local
governments should, believe it or not, have a lasting positive impact on some
I don’t know about you, but people I know who
are not subject to these orders, have begun cocooning and don’t want to go to
the store on a regular basis anymore. But, they also don’t want to give up
being able to have variety in what they eat. None of my friends are eating
cereal for every meal yet.
As we navigate these unprecedented times and
actions here in the U.S. and globally as coronavirus numbers increase, there
will be winners and losers. Ill keep trying to find stocks like these for you
that may prosper in the current adversity we are experiencing.
delivers food from a huge variety of restaurants directly to your door. The
company has signed contracts with the likes of Burger King, Taco Bell, and
And, not only does Grubhub deliver for major
chains, but brings delivery options to local mom and pop restaurants that have
either not been able to offer delivery options, or have a very limited area of
Even in restaurants that have delivery
offerings, which have both a robust software to manage delivery offerings, as
well as an in-place driver stable (not sure what that is?; audience may not
either), the delivery may be cheaper and more efficient with Grubhub.
In its most recent quarter, the company reported
$322.1 million in revenue, a
30% year-over-year increase from $247.2 million in the third quarter of 2018. Gross Food Sales grew 15% year-over-year to
$1.4 billion, up from $1.2 billion in the same period last year.
Another company delivering
food to homes under a different model is Blue Apron (APRN). Blue Apron
lets you pick your food choices from a large menu, and then provides all of the
ingredients to make tasty meals for your family.
While the company has been
struggling to get its cost structure in line with its product offering, the
business model is a perfect fit for this shelter in place environment. Not only
does Blue Apron deliver food, but it gives families stuck at home an activity
they can do together.
I believe as customers turn
to companies like Blue Apron, it will give the company a short term bump. But,
it also gives the company a real chance of gaining a number of longer-term
In its latest earnings
report, the company reported net revenue for the full year 2019 decreased 32%
to $454.9 million from $667.6 million for the full-year 2018. The company went
after a lower-end customer in offering huge discounts upfront in its marketing
early on. They are in the process of pivoting from this customer profile, but
the current crisis may redirect that thinking.
Finally, not only is the
encouragement to stay home and shelter in place order impacting where we humans
get our food, but where we get food for our pets. I believe Chewy (CHWY)
is definitely worth a look here.
The order by mail pet supply
company should also see an uptick in business in this environment. The company
offers discounts for subscribing to a recurring delivery schedule for its pet
food offerings. And, I believe they will pick up both short term and long term
In its latest quarter, the
company had net sales of $1.23 billion, up 40% year-over-year. While the
company lost $30.2 million, this was a 56% improvement year-over-year. Like
many of the other delivery services, Chewy is still working through its
business model to profitability, but the boost it should see from coronavirus
fallout should give it a major shot in the arm moving forward.
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