Citi: World Cup Fans' Food Orders Will Boost Delivery Firms

Citigroup Inc. analysts say that UK football fans who are watching the World Cup from the comfort of their sofas could boost delivery firms such as Just Eat Takeaway.com NV and Deliveroo Plc, as many people may opt to order food instead of cooking.

Analysts believe that the World Cup will lead to an increase in food delivery orders in the fourth quarter, especially in the UK. With most people planning to watch the matches from home, there is likely to be a high demand for takeaway food. Similar trends are expected in other European countries.

According to a recent Bloomberg Intelligence survey of 650 British respondents, more than three quarters of those planning to watch some World Cup matches would mainly tune in from home. Of that number, about 57% said they’d be munching on takeaway food as they enjoy the sporting spectacle.

According to a Citigroup survey, the World Cup may lead to an increase in food delivery orders, especially for Just Eat and Deliveroo, which have large exposure to European markets. However, Wall Street analysts have predicted a tough quarter for both firms, as consumers facing a cost-of-living crisis are likely to cut back on spending.

The analysts said that the impact of the World Cup on competitor Delivery Hero SE looks more nuanced. Latin American clients often choose to fire up their barbecues at home while they watch sports, which could impact the company's business.

However, its Middle East and North Africa arm could benefit from the event being held in Qatar. The company has not assumed any material top-line boost from the World Cup, the analysts said.

Food delivery stocks have been among the worst performers in Europe this year, with investors turned off by their steep losses at a time when borrowing costs are soaring.

Meanwhile, their growth has suffered as pandemic-fueled sales faded and the companies pared back promotions. Shares of Just Eat, Delivery Hero and Deliveroo have all declined by more than half this year.