Just Eat receives biting criticism from activist investor

Just Eat has come under attack from activist investor Cat Rock Capital Management, which owns 2% of the FTSE 100 takeaway food marketplace.

Cat Rock, which is based in Connecticut, USA, has demanded management “address key issues” and produce a new three-year plan within 30 days, or failing that to pursue "strategic alternatives" of selling off non-core assets including Brazil-based iFood and other non-European businesses.

Just Eat is poised to tumble out of the FTSE 100 index after its shares lost a quarter of their value in 2018, returning to whence they were last seen in early summer 2017 despite achieving doubling revenues over the last two years.

In a letter to the Just Eat board, Cat Rock called for management pay to be linked to growth in profit rather than revenue.

"Just Eat’s shareholders have been very patient, but online food delivery is a rapidly evolving sector. Further delays in planning and decision-making will only continue to destroy shareholder value," said Cat Rock founder and managing partner Alex Captain.

Captain claimed that shareholders were frustrated with management’s "lack of accountability for delivering" on the potential of the group, which was damaging the company's value and performance.