Louisiana food delivery company Waitr's stock price fell by half Friday — sending the company's market value to $134 million from a peak of $910 million just five months ago, our media partners at The Advocate report.
The company was coming off a financial report Thursday and conference call with analyst's that outlined its financial losses during April-June, a shake-up of its workforce — including its top executive's role in the company — and a rustling of independent restaurant owners feathers with higher commissions as Waitr continues to maneuver its way in a restaurant food delivery market that's been consolidating in the past few years, the Advocate reports.
Waitr also revealed that it has hired strategic advisers to keep an eye on industry competitors and guide the company — potentially toward a merger or sale, though that was downplayed in discussions with analysts — as it continues to hemorrhage cash and its stock price dropped to a new low, the Advocate reports.
To read the Advocate's full story, click here.
Waitr has been in the news lately. Back in June, the company laid off workers in Lafayette and Lake Charles - many of whom had been with the company since it started and helped build it from a start-up to a business attractive enough for a multi-million dollar buyout - just months after receiving a state tax credit for creating jobs.
Then days later, the company announced a rate structure that upset restaurants and resulted in organized boycotts in several cities. That change, coupled with the layoffs, led several restaurants to consider severing their connection with Waitr. Then just days ago, the founder of the company was removed as CEO and left as Chairman of the Board. His retention of the position of CEO and as Chair were part of the sale announced in May 2018. At that time, an acquisition company bought Waitr for $50 million cash for Texas billionaire Tilman Fertitta, with the remainder of the $308 million sale price being paid in Waitr stock.
