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Grubhub stock jumps after announcing nationwide Dunkin' delivery

Key Points
  • Dunkin' is taking delivery nationwide through its partnership with Grubhub.
  • The coffee chain began testing delivery with Grubhub in February.
  • Dunkin' also has a delivery partnership with Grubhub's privately held rival, DoorDash.
Jin Lee | Bloomberg | Getty Images

Shares of Grubhub jumped 4% Monday morning after Dunkin' Brands said it would be delivering its coffee and doughnuts nationwide through a partnership with the third-party delivery service.

The delivery provider's stock, which has a market value of $6.7 billion, is down 38% over the last year. Once the market leader, Gruhub has lost market share to rivals like DoorDash and Uber Eats, according to analysts.

Dunkin' delivery through Grubhub will be available at 400 New York City locations through Seamless, Grubhub's New York brand. The companies plan to expand to other markets in the coming months, including Boston, Chicago and Philadelphia.

Dunkin' began testing delivery with Grubhub in February. The coffee chain also has a delivery partnership with DoorDash in select markets, including parts of New York and New Jersey.

Meanwhile, Dunkin shares were little changed on the news. The stock, which has a market cap of $6.6 billion, is up less than 1%.