European Food Delivery Firms Face Forecast Cuts as Inflation Surges, Says JP Morgan

European Food Delivery Firms Face Forecast Cuts as Inflation Surges, Says JP Morgan
A food delivery employee wearing a protective face mask rides a bike in Milan on March 14, 2020, as the Italian government continues restrictive movement measures to combat the COVID-19 outbreak. Daniele Mascolo/Reuters
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European food delivery companies will be forced to slash their forecasts in the second half of the year as record-high inflation and rising borrowing costs take a toll on consumers, analysts at J.P. Morgan said on Monday.

The brokerage said food delivery has so far not been “stress tested” in a recession, but views the sector as highly discretionary and expects a sharp drop in orders.