An online takeaway firm is ready to join the ranks of Britain’s biggest companies this week.
Eat only what is expected to be promoted to the FTSE 100 on the back of its soaring stock price, and comes just three years after its stock market debut.
Their elevation would be the first example of the firm to join the blue chip index.
The next FTSE reshuffle is based on the closing price of the shares on Tuesday, with the engineer Babcock and Alton Towers-owner Merlin at risk of decline.
Just Eat’s shares have risen 43% this year on the back of revenue growth and acquisitions. Is £5.5 bn market value makes it bigger than Sainsbury’s.
Just Eat takes online orders from customers and acts as the delivery of intermediary between them and restaurants.
Nicholas Hyett, equity analyst at Hargreaves Lansdown, said Just Eat’s growth highlights the change of consumption habits and the impact of the consumer-facing tech firms.
“Remodeling inside and outside of the FTSE 100 are somewhat symbolic, but it can highlight companies whose stars are on the rise, Just Eat a good example – have just floated a little over three years ago,” he said.
“The customers are the rapid adoption of online ordering as its default sort of the route, and Just Eat has been the increase in orders and revenue at a rate of knots.”
Earlier this month, the Competition and Markets Authority clean Eat Just € 240 million acquisition of its rival Hungryhouse.The downgrade
Babcock, one of the uk’s oldest engineering companies, has seen its share price hit over concerns about the costs of defense, and is one of the companies most likely to be demoted to the FTSE 250.
Merlin, which also owns Madame Tussauds wax museum and the London Eye, has seen the number of visitors of the tail-off in response to the growing uk threat level, with the guilt also set in the good end of the summer, the weather across the uk and northern Europe.
The third company with the point for the FTSE 100 ejection is the hospital group Mediclinic International, which recently ended acquisition talks with the Needle of Health care.
In addition to the Eating of the promotion, Lord Hyett says paper packaging business DS Smith Halma, the health and safety of the technology of the company, are on course to join the FTSE 100.
Changes in the FTSE 100 and 250 will take effect in mid-December.