GRUB GrubHub Inc

GrubHub Inc. said it plans to appoint two new directors to its seven-member board as the online food ordering and delivery company also provided an upbeat fourth quarter outlook and unveiled plans to buy back an additional $100 million of its shares.

The company's shares rose 9.6% to $21 in recent premarket trading. Through Friday's close, the stock is down 46% in the past 12 months.

The move comes after venture capitalist Bill Gurley stepped down from GrubHub's board last month amid mounting competition—and growing potential for conflicts of interest—in the business of food delivery. GrubHub replaced Mr. Gurley with Katrina Lake, the chief executive of Stitch Fix, a Benchmark-backed online fashion startup.

GrubHub, which went public in April 2014, has generated increasing profits by charging restaurants a commission on orders booked through its service. The Chicago company's fast growth was helped by its merger with Seamless in August 2013. Still, GrubHub is facing increasing competition amid more options for home diners.

The company said it plans to identify two new independent directors for the board, one of which would succeed a current board member who will step down, but didn't provide further details in a news release on Monday.

GrubHub also expects its fourth quarter earnings before interest, taxes, depreciation and amortization to come in "modestly above" its guidance for between $23 million to $25 million and that revenue will be at the high-end of its earlier estimate of $98 million to $100 million.

During October, GrubHub said its third-quarter earnings rose 6.4% as the company continued to attract new diners, leading to growth in orders. However, the company's per-share earnings, excluding certain items, missed Wall Street estimates and revenue was near the lower end of the company's expectations.

GrubHub plans to release its fourth-quarter results Feb. 4.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

January 25, 2016 09:05 ET (14:05 GMT)

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