GrubHub’s stock is going crazy because it added so many new ‘active diners’ (GRUB)

GrubHub CEO Matt Maloney (C) applauds after ringing the opening bell before the company's IPO on the floor of the New York Stock Exchange in New York April 4, 2014. REUTERS/Lucas JacksonThomson Reuters

Online food delivery service GrubHub saw a big uptick in customers during the first three months of the year, sending its shares surging more than 18% in mid-day trading on Thursday.

The company said “active diners” on its app totaled 8.75 million in the first quarter of the year, up 26% from the year-ago period. Gross food sales of $828 million were also up 26%.

GrubHub CEO Matt Maloney attributed the growth to broader marketing reach, a growing selection of restaurants and product improvements.

The strong performance comes despite heated competition from other food-delivery startups and tech giants such as Uber, Amazon and Yelp.

GrubHub’s Q1 revenue rose 39% year on year to $156.1 million, ahead of the $153 million expected by analysts polled by Thomson Reuters. The company’s net income increased 70% year-on-year to $17.7 million, with earnings per share, excluding certain items, of $0.29.

GrubHub’s stock was up 18.45% at $41.51, with nearly three times the average volume of shares trading hands on Thursday.

Look at that chart:

GrubHubYahoo Finance

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