Deliveroo reported Q2 earnings with revenue up 8%, beating FactSet consensus. Guidance narrowed to upper end for GTV and adjusted EBITDA targets. Shares down 0.06% on Aug 7. UK GTV up 10%, international growth steady but weak in France. Grocery saw growth, margin declined slightly. DoorDash acquisition proceeding as planned.

Enhancements to Deliveroo’s consumer value proposition led to 8% increase in orders, improved retention rates, and higher order frequency. GTV in UK up 10%, international growth steady. Gross margin declined slightly, adjusted EBITDA margin improved. DoorDash set to acquire Deliveroo for GBP 2.9 billion, expected in Q4 2025.

Maintaining fair value estimate of GBX 180 for Deliveroo. Shares appear fairly valued with market pricing in benefits from strategic initiatives and upcoming DoorDash acquisition. Acquisition proceeding as planned, subject to regulatory approval, expected to be completed in Q4 2025.

Read more at Morningstar: Consumer Value Proposition Enhancements Appear to be Bearing Fruit