Public companies are required to disclose risks that can affect the business and impact the stock. These disclosures are known as “Risk Factors”. Companies disclose these risks in their yearly (Form 10-K), quarterly earnings (Form 10-Q), or “foreign private issuer” reports (Form 20-F). Risk factors show the challenges a company faces. Investors can consider the worst-case scenarios before making an investment. TipRanks’ Risk Analysis categorizes risks based on proprietary classification algorithms and machine learning.

Just Eat Takeaway.com disclosed 17 risk factors in its most recent earnings report. Just Eat Takeaway.com reported the most risks in the “Legal & Regulatory” category.

Risk Overview Q4, 2021

Risk Distribution

41% Legal & Regulatory

29% Tech & Innovation

18% Finance & Corporate

12% Ability to Sell

0% Production

0% Macro & Political

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

This chart displays the stock's most recent risk distribution according to category. TipRanks has identified 6 major categories: Finance & corporate, legal & regulatory, macro & political, production, tech & innovation, and ability to sell.

Risk Change Over Time

S&P500 Average

Sector Average

Risks removed

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Just Eat Takeaway.com Risk Factors

New Risk (0)

Risk Changed (0)

Risk Removed (0)

No changes from previous report

The chart shows the number of risks a company has disclosed. You can compare this to the sector average or S&P 500 average.

The quarters shown in the chart are according to the calendar year (January to December). Businesses set their own financial calendar, known as a fiscal year. For example, Walmart ends their financial year at the end of January to accommodate the holiday season.

Risk Highlights Q4, 2021

Main Risk Category

Legal & Regulatory

With 7 Risks

Legal & Regulatory

With 7 Risks

Number of Disclosed Risks

S&P 500 Average: 31

Recent Changes

0Risks added

0Risks removed

0Risks changed

Since Dec 2021

0Risks added

0Risks removed

0Risks changed

Since Dec 2021

Number of Risk Changed

S&P 500 Average: 3

See the risk highlights of Just Eat Takeaway.com in the last period.

Risk Word Cloud

The most common phrases about risk factors from the most recent report. Larger texts indicate more widely used phrases.

Risk Factors Full Breakdown - Total Risks 17

Legal & Regulatory

Total Risks: 7/17 (41%)Above Sector Average

Regulation5 | 29.4%

Regulation - Risk 1

Just Eat Takeaway.com faces risks associated with the independent contractor model, which is subject to evolving government regulation of, and judicial intervention in, the "gig economy." Changes in government regulation of or successful challenges to the independent contractor model used by Just Eat Takeaway.com in certain markets may require Just Eat Takeaway.com to change its existing business models and operations.

Risk category: Social Change, Legal and Regulatory (Gig Economy / Logistics) Government regulation of the "gig economy" (a labour market characterised by the prevalence of short-term missions or freelance work as opposed to permanent jobs) has evolved considerably over the past few years and continues to do so. Just Eat Takeaway.com has adopted an independent contractor model in Australia, Canada, Ireland, New Zealand, Slovakia, the UK, and the US, where it engages independent contractors directly as delivery couriers, such that its delivery couriers are not employees of Just Eat Takeaway.com, which classification remains subject to evolving government regulation and judicial interpretation. Due to uncertainties in the interpretation of applicable law, as well as constant legislative evolution, this sector has been subject to scrutiny and, in some cases, the commencement of class actions with workers claiming they should have been treated as employees or workers rather than self-employed contractors. As a result of uncertainties surrounding the interpretation of applicable law and the evolving legislative and regulatory landscape concerning the "gig economy", there is a risk that Just Eat Takeaway.com's independent contractor models in Australia, Canada, Ireland, New Zealand, Slovakia, the UK and the US may be subject to further challenge. Just Eat Takeaway.com is growing and may continue to grow its delivery services. As a result, to the extent such growth involves engaging additional independent contractors, the effects of any such successful challenges may be material. It is also possible that Just Eat Takeaway.com may be subjected to fines and/or other sanctions in respect of its independent contractor models. Such events could have a material and adverse effect on Just Eat Takeaway.com's business, results of operations, financial condition and/or prospects.

Regulation - Risk 2

Just Eat Takeaway.com's operations are subject to numerous legal and regulatory regimes and its businesses could be harmed by changes to, or interpretation or application of, the laws and regulations of each of the jurisdictions in which it operates.

Risk category: Social Change, Legal and Regulatory (Operating in Various Jurisdictions) Just Eat Takeaway.com faces certain inherent risks due to the geographic scope and the nature of its businesses. Just Eat Takeaway.com is exposed to laws and regulations which vary, and sometimes conflict, from one jurisdiction to another. Just Eat Takeaway.com's ability to comply with existing laws and regulations applicable to its businesses across the multiple jurisdictions in which it operates and to predict and adapt to changes in those jurisdictions, is important to its success. Any uncertainty or changes in applicable laws or regulations, in particular in relation to payment services, competition, the internet, e-commerce, consumer protection, cookies, privacy, electronic marketing, platform regulation and legislation or rules relating to the right to be forgotten, or the takeaway food industry specifically, in one or more of the markets in which Just Eat Takeaway.com operates, could have a material adverse effect on Just Eat Takeaway.com's reputation, business, results of operations, financial condition and/or prospects.

Regulation - Risk 3

Just Eat Takeaway.com is subject to extensive government regulation and oversight relating to the provision of payment and financial services. Failure to comply with, loss of privileges pursuant to or material modifications to applicable regulations could severely impact its ability to process payments or result in penalties or costly and time-consuming remediation efforts.

Risk category: Social Change, Legal and Regulatory (Regulated Online Payment Services) Just Eat Takeaway.com is affected by the revised Payment Services Directive 2015/2366/EU ("PSD II") and its implementation in the European countries where it operates regulated payment services. PSD II entered into force and was implemented in the Netherlands on 19 February 2019. Takeaway.com Payments B.V., a Dutch incorporated 100% subsidiary of the Company, has obtained a licence from the Dutch Central Bank (De Nederlandsche Bank N.V., the "DNB") in accordance with PSD II and as a payment institution falls under the supervision of the DNB. All online payments for food in Austria, Belgium, Germany, Poland, Portugal, Luxembourg, and the Netherlands are facilitated by Takeaway.com Payments B.V. In all other applicable countries within the European Economic Area ("EEA") (except for France, where Just Eat Takeaway.com relies on the limited network exemption), Just Eat Takeaway.com relies on its commercial agent exemption, and therefore the payment services it provides are not regulated and do not require a licence. For these markets, Just Eat Takeaway.com may continue to rely on this exemption because it receives payments as a commercial agent authorised via an agreement to negotiate or conclude the sale of goods on behalf of its partners and does not act as a commercial agent on behalf of the consumers. Should Takeaway.com Payments B.V.'s licence be revoked by the DNB in the future, or other enforcement measures be taken by the DNB, such as imposing penalties and/or forcing Just Eat Takeaway.com to cease offering certain payment facilities, Just Eat Takeaway.com's ability to process online payments would be severely impacted and/or Just Eat Takeaway.com may be forced to involve third-party payment service providers, or be subjected to a combination of the possible consequences referred to above. In addition, Just Eat Takeaway.com, in the countries where payments are not facilitated by Takeaway.com Payments B.V., is subject to the Payment Card Industry ("PCI") and Data Security Standard (the "Standard"). The Standard is a comprehensive set of requirements for enhancing payment account data security that was developed by the PCI Security Standards Council to help facilitate the broad adoption of consistent data security measures. Just Eat Takeaway.com is required by payment card network rules to comply with the Standard. Under certain circumstances specified in the payment card network rules, Just Eat Takeaway.com may be required to submit to periodic audits, self-assessments, or other assessments of its compliance with the Standard. Such activities may reveal that Just Eat Takeaway.com has failed to comply with the Standard, which may result in fines or restrictions on its ability to accept card payments and/or costly remediation efforts.

Regulation - Risk 4

Just Eat Takeaway.com is subject to pricing and platform regulations and may become subject to related litigation or regulatory inquiries. Modifications to pricing and/or platform regulations or the outcome of related litigation or regulatory inquiries may, among other things, require changes to the pricing models of Just Eat Takeaway.com and may negatively impact financial results and/or increase its costs of doing business.

Risk category: Social Change, Legal and Regulatory (Pricing Regulations) Just Eat Takeaway.com is subject to pricing regulations in the jurisdictions in which it operates. For instance, the implementation of European Directive 2011/83/EU on consumer rights has in the past affected and may continue to affect Just Eat Takeaway.com's operations. Additionally, fees and commissions charged by online food delivery marketplaces and other business practices of online platforms are currently under increased scrutiny and are expected to continue to be subject to political and public debate in the jurisdictions in which Just Eat Takeaway.com operates. This increased scrutiny may lead to changes in platform regulation or legislation, negative publicity or investigations or litigation commenced by governmental authorities or other parties. Further changes in platform regulation, legislation or related litigation resulting from such increased scrutiny may require changes to certain business practices of Just Eat Takeaway.com, including changes to fees and commissions. Changes to fees and commissions may, among other things, negatively affect Just Eat Takeaway.com's ability to generate revenue or result in dissatisfaction or loss of consumers or partners on Just Eat Takeaway.com's platforms. Similarly, in response to Covid-19, several jurisdictions, predominantly in North America, have implemented or are considering implementing fee caps, fee disclosure requirements and similar measures that have negatively impacted Just Eat Takeaway.com's financial results, and could negatively impact Just Eat Takeaway.com's financial results and/or increase its cost of doing business. See also "Item 5.A Operating Results-Key Factors Affecting Results of Operations-Revenue".

Regulation - Risk 5

Just Eat Takeaway.com is subject to the competition laws of the countries it operates in and changes in, or its failure to comply with, competition laws could adversely affect its businesses, results of operations, financial condition and/or prospects.

Risk category: Social Change, Legal and Regulatory (Competition Laws) Just Eat Takeaway.com is subject to the competition laws of the countries it operates in and such laws may restrict Just Eat Takeaway.com's ability to agree with partners on a price guarantee (that is, the guarantee that partners do not charge consumers a lower price for the same food if ordered directly through the partner's own online order channels, or if applicable via another online platform, as opposed to if ordered via Just Eat Takeaway.com's platforms). Competition authorities in several markets in which Just Eat Takeaway.com is active have considered the impact of such price guarantees. Accordingly, there is a risk that the price guarantee clauses in agreements between certain restaurants and Just Eat Takeaway.com could be found to violate competition laws. Any such violations of competition law could result in fines, the relevant terms or the agreements themselves being unenforceable, consequential amendments to agreements, claims for damages and reputational damage, each of which could potentially have a material adverse effect on Just Eat Takeaway.com's business, results of operations, financial condition and/or prospects.

Taxation & Government Incentives1 | 5.9%

Taxation & Government Incentives - Risk 1

Just Eat Takeaway.com is subject to the tax laws and regulations of different jurisdictions, changes to which could materially affect its businesses, results of operations, and financial condition.

Risk category: Social Change, Legal and Regulatory (Tax Regulations) Just Eat Takeaway.com is subject to tax laws and regulations of different jurisdictions. Given that tax laws and regulations are subject to frequent change and their meaning may be subject to interpretation, the tax positions taken by Just Eat Takeaway.com may at times be subject to challenge by the relevant authorities. More generally, any failure to comply with the tax laws or regulations applicable to Just Eat Takeaway.com may result in reassessments, late payment interest, fines, and penalties. As future developments, including initiatives relating to the taxation of the digital economy and taxation of self-employed individuals, are uncertain and partly beyond management's control, assumptions are necessary to estimate future tax costs, taxable profits as well as the period in which deferred tax assets will recover. Any significant increase in Just Eat Takeaway.com's tax burden due to the factors described above is likely to have a material adverse effect on its results of operations, business, financial condition and/or prospects.

Environmental / Social1 | 5.9%

Environmental / Social - Risk 1

Just Eat Takeaway.com's operations involve the processing of personal data of consumers, restaurant owners and contracted couriers, which processing is regulated under privacy and data protection laws and governmental regulations. Compliance with such laws and regulations could give rise to additional costs and failure to comply, including as the result of security breaches, could give rise to liabilities and could have a material and adverse effect on its reputation, business, financial condition, results of operations and/or prospects because of privacy and data protection laws and governmental regulations and risks of security breaches.

Risk category: Social Change, Legal and Regulatory (Data Privacy Regulations) Just Eat Takeaway.com's operations involve the processing of personal data of consumers, restaurant owners and contracted couriers. In its capacity as an online food delivery marketplace and as a facilitator of online payments, Just Eat Takeaway.com acts as an intermediary or agent, as applicable, between partners, consumers purchasing from these partners, and entities controlling the payment methods that the consumers choose to use. In furtherance of the services, Just Eat Takeaway.com provides and receives personal data of consumers, restaurant owners and contracted couriers. Such personal data includes identification data, location data, and payment transaction data that consumers supply when they wish to make a payment for an order, or in the case of restaurant owners and contracted couriers, bank routing and account information so that they can hold a business account and receive payments from Just Eat Takeaway.com. Consequently, Just Eat Takeaway.com is subject to the privacy rules of the countries in which it operates. Any failure to comply with applicable data protection and privacy laws may harm Just Eat Takeaway.com's reputation or lead to investigations, sanctions, penalties, proceedings or actions against Just Eat Takeaway.com by governmental agencies or other persons, including class action litigation in certain jurisdictions. In addition, Just Eat Takeaway.com faces the possibility of security breaches, which themselves may result in a violation of applicable data protection and privacy laws. Any failure of Just Eat Takeaway.com and its affiliated partners, suppliers, service providers or others to adequately protect personal or sensitive data could have a material and adverse effect on its reputation, business, financial condition, results of operations and/or prospects.

Tech & Innovation

Total Risks: 5/17 (29%)Above Sector Average

Innovation / R&D1 | 5.9%

Innovation / R&D - Risk 1

If Just Eat Takeaway.com does not continue to innovate or otherwise meet consumer expectations, it may not remain competitive, and its businesses and results of operations could suffer.

Risk category: Competition (Innovation) Just Eat Takeaway.com's success depends on the quality and user-friendliness of its websites and mobile applications and the quality of its back-end technology infrastructure. To remain competitive, Just Eat Takeaway.com believes that it will need to continuously enhance and improve the functionality and features of its websites and mobile applications to maintain a convenient, efficient, and reliable user experience for consumers, partners, and couriers. Just Eat Takeaway.com may be unable to keep pace with developments in its websites and mobile applications or its back-end technology infrastructure and other trends or disruptive innovations in the e-commerce industry relative to its competitors, such as the development of predictive software or variants of artificial intelligence. In addition, Just Eat Takeaway.com may fail to adequately manage and execute other opportunities for innovation. Any failure to keep pace with technological developments could affect the ability of Just Eat Takeaway.com to retain consumers, partners and couriers and have a material adverse effect on the pursuit of its strategic goals, as well as on its business, results of operations, financial condition and/or prospects.

Trade Secrets2 | 11.8%

Trade Secrets - Risk 1

Just Eat Takeaway.com may face certain risks in connection with the supply of its restaurant devices.

Risk category: Technology Reliability & Availability (Resilience) Just Eat Takeaway.com relies upon the suppliers of partner devices which facilitate the receiving and processing of orders by partners on Just Eat Takeaway.com's platforms. If any of these suppliers were to terminate their supply relationship with Just Eat Takeaway.com or become unable for any reason to supply Just Eat Takeaway.com with the requisite numbers of devices, the ability of Just Eat Takeaway.com to service the partners in its existing networks and expand its network of partners may be materially adversely affected. Furthermore, in the event of product damage, failure in a particular delivery of devices, or a systemic hardware or software quality or reliability issue, there may be consequential constraints upon Just Eat Takeaway.com's ability to supply such devices to partners that utilise them. Any inability to overcome supply constraints to meet higher levels of demand from an expanding network of partners may have a material adverse effect on Just Eat Takeaway.com's reputation, business, financial condition and/or results of operations.

Trade Secrets - Risk 2

Just Eat Takeaway.com may be adversely affected if it fails to obtain or maintain adequate protection for its intellectual property rights.

Risk category: Social Change, Legal and Regulatory (Intellectual Property Rights) Just Eat Takeaway.com's intellectual property rights, whether developed organically or acquired because of an acquisition (in particular, website domain names and trademarks), are crucial for the operation of its businesses. These intellectual property rights protect Just Eat Takeaway.com's brands and are at the core of its efforts to raise consumer awareness for its services and are thus directly related to its reputation. Each of Just Eat Takeaway.com's brands will be dependent on its ability to protect and promote its intellectual property rights, specifically its trademarks. Just Eat Takeaway.com cannot guarantee that third parties will not infringe upon Just Eat Takeaway.com's trademark rights, or that a third party will not purchase domain names that are identical to Just Eat Takeaway.com's domain names, except for its extension. In addition, Just Eat Takeaway.com may be unable to adequately register and protect its trademarks or purchase at a reasonable price relevant domain names as it enters new markets. Should Just Eat Takeaway.com's trademarks be challenged or infringed upon, or should it be unable to adequately register and protect trademarks or purchase domain names when entering new markets, this may have an adverse effect on Just Eat Takeaway.com's brands and, as a result, on its businesses, results of operations and/or financial condition.

Cyber Security1 | 5.9%

Cyber Security - Risk 1

Compromised security and performance failures due to hacking, viruses, fraud-motivated attacks or other malicious attacks could adversely affect Just Eat Takeaway.com's reputation.

Risk categories: Data Security & Privacy and Brand & Reputation (Information Security) Like all online services, Just Eat Takeaway.com's platforms are vulnerable to computer viruses, break-ins, phishing attacks, ransomware attacks, attempts to overload its servers with distributed denial-of-service ("DDoS") attacks, credential stuffing attacks, misappropriation of data through website scraping or other attacks or similar disruptions from unauthorised use of Just Eat Takeaway.com's computer systems. Despite Just Eat Takeaway.com's information security measures, the occurrence of any of the foregoing with respect to Just Eat Takeaway.com's platforms or any third-party service providers which Just Eat Takeaway.com currently or in the future relies upon could lead to interruptions, delays, or website shutdowns, potentially causing lost business, temporary inaccessibility of critical data, or account details, including personal data, being stolen, or released. The coverage under the insurance policies of Just Eat Takeaway.com may not be adequate to reimburse Just Eat Takeaway.com for losses caused by security incidents, or other adverse consequences related to a security incident.

Technology1 | 5.9%

Technology - Risk 1

Any disruptions to Just Eat Takeaway.com's IT systems and related infrastructure, including due to system outages or supply chain failures affecting telecommunications, cloud providers, internet service providers, payment service providers or technology manufacturers upon which it depends, may adversely affect its performance.

Risk category: Technology Reliability & Availability (Resilience) Despite the resilience and disaster recovery capabilities of Just Eat Takeaway.com's IT systems and infrastructure, there is no assurance that the IT systems underlying Just Eat Takeaway.com's platforms will not temporarily fail. Any failure of, or disruptions to, such IT systems may adversely affect Just Eat Takeaway.com's performance. Any system outages affecting the operation of telecommunications, or the internet may restrict the ability of consumers to access Just Eat Takeaway.com's platforms or partners and Just Eat Takeaway.com's ability to receive and process orders. In addition, Just Eat Takeaway.com operates some of its e-commerce workloads in the cloud. Any outages that affect the operation of the cloud may additionally therefore affect the efficiency of the service provided by Just Eat Takeaway.com. Any such failures in services provided by Just Eat Takeaway.com or third-party telecommunications providers, co-location providers, internet service providers or cloud and payment services providers could adversely affect Just Eat Takeaway.com's business, results of operations, financial condition and/or prospects.

Finance & Corporate

Total Risks: 3/17 (18%)Below Sector Average

Corporate Activity and Growth3 | 17.6%

Corporate Activity and Growth - Risk 1

Just Eat Takeaway.com may not be able to establish, maintain or expand its leadership positions and establish, maintain, or increase its profitability in some or all the jurisdictions in which it currently operates, including because of competition.

Risk category: Competition (Profitability) Online food delivery services are highly competitive and prone to rapid changes. Just Eat Takeaway.com currently faces competition in each of the jurisdictions in which it operates from other online food delivery marketplaces as well as independent partners and regional and national chain restaurants, including those that offer their own online ordering services, delivery services and/or their own mobile applications. Most partners that participate on Just Eat Takeaway.com's platforms can simultaneously work with or switch to one or more of its competitors or use their own online ordering services, delivery services and/or mobile applications, which may result in fewer consumers ordering from such partners via Just Eat Takeaway.com's platforms. The competitive landscape in each particular jurisdiction in which Just Eat Takeaway.com operates is likely to change over time, including due to consolidation among existing competitors or the emergence of new market entrants and technological developments and innovation by competitors. Larger competitors, including those formed as a result of consolidation or new market entrants, particularly if they have greater financial resources, could undertake extensive marketing campaigns aimed at increasing consumers' awareness, website visits, mobile application downloads and orders through such competitors' online platforms, which may compel Just Eat Takeaway.com to increase its own marketing expenditures in order to maintain its market share, or could lead to it losing market share (notwithstanding its efforts to maintain its market share). Increased competition by larger competitors could also adversely impact Just Eat Takeaway.com to the extent that it results in downward pressure on the commission rates that it is able to charge partners and/or the fees that it is able to charge consumers. In addition to the risk of competition from new entrants or existing online food delivery marketplaces, the success of different business models in the food delivery and pick-up industry, such as logistics-focused food delivery companies (that is, companies that partner with restaurants to provide logistics and deliver food on their behalf) might attract and retain current or potential consumers of Just Eat Takeaway.com.

Corporate Activity and Growth - Risk 2

Just Eat Takeaway.com may be unable to integrate successfully or achieve the expected benefits of any prior or future acquisitions or may be unable to identify and acquire suitable acquisition candidates.

Risk category: Acquisitions (Integration and Transformation, and Synergies) Just Eat Takeaway.com has undertaken significant acquisitions in the past and it may continue to do so to establish or maintain leading positions in terms of overall orders in certain markets in the future. The integration of any prior or future acquisitions may not generate sufficient benefits for Just Eat Takeaway.com to justify the costs that it will incur in completing such acquisitions. The integration of local operations may place substantial demands on Just Eat Takeaway.com's management and departments, may take longer or be more costly than anticipated, may result in material tax liabilities, the loss of key employees and may pose organisational challenges, including challenges to their operations, and IT-related challenges, any or all of which Just Eat Takeaway.com may fail to address effectively, resulting in the disruption of its businesses, its inability to maintain relationships with partners, consumers and employees, and its ability to achieve the anticipated benefits of any prior or future acquisition or maintain quality standards. In particular, Just Eat Takeaway.com completed the Just Eat and Grubhub transactions, which were transformative in nature and for which the process of integrating Grubhub is ongoing. Just Eat Takeaway.com may encounter difficulties integrating Grubhub into its existing business. The failure to meet the challenges involved in integrating acquired operations into Just Eat Takeaway.com's business may exacerbate the risks Just Eat Takeaway.com faces in integrating acquirees or any future business it acquires and could cause an interruption of, or a loss of momentum in, Just Eat Takeaway.com's activities and could have a material adverse effect on its business, financial condition, and results of operations. Any acquisition may also require substantial marketing efforts to raise partner and consumer awareness in the relevant market and to reach and broaden the addressable market. Despite such efforts and investments, consumer and restaurant awareness and acceptance for Just Eat Takeaway.com's platforms may not increase or increase at a slower pace than anticipated, which could adversely affect progress towards profitability and/or cash flows. Just Eat Takeaway.com may also need to record impairment charges related to potential write-downs of acquired assets, goodwill, or other intangible assets in relation to prior or future acquisitions. Just Eat Takeaway.com can also not be certain that it will be able to identify and acquire, on reasonable terms, if at all, suitable acquisition candidates. With consolidation being likely to continue as an industry trend, Just Eat Takeaway.com could be faced with increasing competition for attractive acquisition candidates. Failure to identify and/or acquire suitable acquisition candidates or the acquisition of unsuitable candidates could impair Just Eat Takeaway.com's ability to achieve its strategic goals. Compliance with antitrust or any other regulations may delay proposed acquisitions or prevent Just Eat Takeaway.com from closing acquisitions, if at all. If this risk were to materialise, this could adversely affect Just Eat Takeaway.com's business, results of operations, financial condition and/or prospects.

Corporate Activity and Growth - Risk 3

Just Eat Takeaway.com's entry into new business areas or markets may not be successful and may expose it to additional risks and uncertainties.

Risk category: Competition and Innovation (Portfolio Management / Project Governance) Where Just Eat Takeaway.com grows its operations by expanding its businesses into new markets or offering new services, it may not be able to do this in a cost-effective and/or timely manner. New business endeavours launched or expanded by Just Eat Takeaway.com may not be favourably received by corporate customers, consumers, partners or by governments or regulators, or may not become profitable. Any such expansion of Just Eat Takeaway.com's operations may also require significant additional investment, together with operations and resources, which may strain its management, personnel, financial and operational resources. The lack of market acceptance of such efforts or Just Eat Takeaway.com's inability to generate sufficient revenue from such expanded services, products or operations to offset its costs could have a material adverse effect on its business, results of operations, financial condition and/or prospects.

Ability to Sell

Total Risks: 2/17 (12%)Below Sector Average

Sales & Marketing1 | 5.9%

Sales & Marketing - Risk 1

The planned delisting of the Just Eat Takeaway.com ADSs from Nasdaq may adversely affect holders of the Company's ADSs.

Risk category: Legal and Regulatory (Listing venues) Throughout 2021, the Company's shares were traded at Euronext Amsterdam (ticker symbol: TKWY) and its CREST depositary receipts (CDIs) were traded at the London Stock Exchange (ticker symbol: JET). In addition, the Company's American Depositary Shares (ADSs) have been traded on Nasdaq Global Select Market (ticker symbol GRUB) since 15 June 2021. In light of the enlarged and more globalised investor base that Just Eat Takeaway.com has, following completion of the Grubhub acquisition, and in the interests of both Just Eat Takeaway.com and the Company's shareholders, in January 2021, the Company announced its intention to take a period of time in which to determine the optimal listing venues for its long-term future. As part of this assessment, the Company considered, amongst other things, liquidity, and trading volumes across the listings it has in Amsterdam, London and New York. As announced on 8 February 2022 on Form 6-K, the Company has progressed its review to determine optimal listing venues and decided to delist its ADSs from the Nasdaq Global Select Market by the end of the first quarter of 2022. The Company expects its ADSs to be quoted and traded on the OTC Markets via a sponsored Level I Programme following the voluntary delisting. The assessment of the optimal listing venues is ongoing and as a result, the Company will remain listed on Euronext Amsterdam and the London Stock Exchange until otherwise decided.

Brand / Reputation1 | 5.9%

Brand / Reputation - Risk 1

The success of Just Eat Takeaway.com depends on its reputation and the reputation and consumer awareness of its brands, which may be negatively impacted by negative publicity relating to them, any of its brands, the restaurants on its platforms or the food delivery industry in general.

Risk category: Brand & Reputation (Communication) Just Eat Takeaway.com's brands are a key part of its value proposition relative to actual and potential competitors, and therefore, any failure to maintain brand appeal is a potential business threat. The threat is heightened by the fact that Just Eat Takeaway.com generally focuses its platforms on a single brand in each market. Each of Just Eat Takeaway.com's brands could suffer as a result of a range of events beyond its control, such as a food poisoning incident (including as a result of food hygiene standards) or an allergic reaction involving one or more of the partners on its platforms (whether or not the food was ordered via its platforms), violation of food safety rules by partners on its platforms, failure by partners on its platforms to comply with food information regulations, to the extent applicable, other health scares involving partners generally, data breaches, traffic accidents caused by, or involving, couriers recognisably associated with any of Just Eat Takeaway.com's brands, whether or not employed or engaged by Just Eat Takeaway.com, or other misconduct by persons associated with items or merchandise bearing Just Eat Takeaway.com's brands. The risk of reputational damage due to the misconduct of individuals is increased by Just Eat Takeaway.com's expansion of its own complementary logistical food delivery services. In addition, Just Eat Takeaway.com's operations depend on various third parties to provide services, in particular telecommunications, internet, and cloud, as well as banks and payment service providers used by Just Eat Takeaway.com. Notwithstanding the redundant architectures and resilience measures that have been designed into Just Eat Takeaway.com's operational systems, there remains a risk that potential system outages or cyber-attacks may affect the operation of telecommunications, cloud, or internet services, as well as any unannounced action by telecommunications, cloud or internet service providers. As consumers and partners may attribute any performance failure or payment problem relating to a food delivery order to Just Eat Takeaway.com and its brands, regardless of the cause of the failure or problem, consumers may become dissatisfied with Just Eat Takeaway.com's value proposition. In addition, as Just Eat Takeaway.com's hybrid business model is premised on connecting partners and consumers, in many cases they rely on partners to deliver food, rather than Just Eat Takeaway.com performing this function directly or through third parties. Accordingly, delays in deliveries by partners, or Just Eat Takeaway.com's inability to offer a uniform food delivery experience, could adversely affect perceptions of its value proposition. Negative publicity because of any of the foregoing could have a material adverse effect on Just Eat Takeaway.com's reputation and the reputation of its brands. This risk is heightened by the fact that Just Eat Takeaway.com operates in an industry that is impacted by dynamic social change and public expectation, such as food safety, allergens, workers' rights, and sustainability. The effect of negative publicity could be exacerbated to the extent dissatisfaction with Just Eat Takeaway.com is disseminated via social media due to its immediacy and accessibility as a means of communication.

See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.

FAQ

What are “Risk Factors”?

Risk factors are any situations or occurrences that could make investing in a company risky.

The Securities and Exchange Commission (SEC) requires that publicly traded companies disclose their most significant risk factors. This is so that potential investors can consider any risks before they make an investment.

They also offer companies protection, as a company can use risk factors as liability protection. This could happen if a company underperforms and investors take legal action as a result.

It is worth noting that smaller companies, that is those with a public float of under $75 million on the last business day, do not have to include risk factors in their 10-K and 10-Q forms, although some may choose to do so.

How do companies disclose their risk factors?

Publicly traded companies initially disclose their risk factors to the SEC through their S-1 filings as part of the IPO process.

Additionally, companies must provide a complete list of risk factors in their Annual Reports (Form 10-K) or (Form 20-F) for “foreign private issuers”.

Quarterly Reports also include a section on risk factors (Form 10-Q) where companies are only required to update any changes since the previous report.

According to the SEC, risk factors should be reported concisely, logically and in “plain English” so investors can understand them.

How can I use TipRanks risk factors in my stock research?

Use the Risk Factors tab to get data about the risk factors of any company in which you are considering investing.

You can easily see the most significant risks a company is facing. Additionally, you can find out which risk factors a company has added, removed or adjusted since its previous disclosure. You can also see how a company’s risk factors compare to others in its sector.

Without reading company reports or participating in conference calls, you would most likely not have access to this sort of information, which is usually not included in press releases or other public announcements.

A simplified analysis of risk factors is unique to TipRanks.

What are all the risk factor categories?

TipRanks has identified 6 major categories of risk factors and a number of subcategories for each. You can see how these categories are broken down in the list below.

1. Financial & Corporate

Accounting & Financial Operations - risks related to accounting loss, value of intangible assets, financial statements, value of intangible assets, financial reporting, estimates, guidance, company profitability, dividends, fluctuating results.
Share Price & Shareholder Rights – risks related to things that impact share prices and the rights of shareholders, including analyst ratings, major shareholder activity, trade volatility, liquidity of shares, anti-takeover provisions, international listing, dual listing.
Debt & Financing – risks related to debt, funding, financing and interest rates, financial investments.
Corporate Activity and Growth – risks related to restructuring, M&As, joint ventures, execution of corporate strategy, strategic alliances.

2. Legal & Regulatory

Litigation and Legal Liabilities – risks related to litigation/ lawsuits against the company.
Regulation – risks related to compliance, GDPR, and new legislation.
Environmental / Social – risks related to environmental regulation and to data privacy.
Taxation & Government Incentives – risks related to taxation and changes in government incentives.

3. Production

Costs – risks related to costs of production including commodity prices, future contracts, inventory.
Supply Chain – risks related to the company’s suppliers.
Manufacturing – risks related to the company’s manufacturing process including product quality and product recalls.
Human Capital – risks related to recruitment, training and retention of key employees, employee relationships & unions labor disputes, pension, and post retirement benefits, medical, health and welfare benefits, employee misconduct, employee litigation.

4. Technology & Innovation

Innovation / R&D – risks related to innovation and new product development.
Technology – risks related to the company’s reliance on technology.
Cyber Security – risks related to securing the company’s digital assets and from cyber attacks.
Trade Secrets & Patents – risks related to the company’s ability to protect its intellectual property and to infringement claims against the company as well as piracy and unlicensed copying.

5. Ability to Sell

Demand – risks related to the demand of the company’s goods and services including seasonality, reliance on key customers.
Competition – risks related to the company’s competition including substitutes.
Sales & Marketing – risks related to sales, marketing, and distribution channels, pricing, and market penetration.
Brand & Reputation – risks related to the company’s brand and reputation.

6. Macro & Political

Economy & Political Environment – risks related to changes in economic and political conditions.
Natural and Human Disruptions – risks related to catastrophes, floods, storms, terror, earthquakes, coronavirus pandemic/COVID-19.
International Operations – risks related to the global nature of the company.
Capital Markets – risks related to exchange rates and trade, cryptocurrency.

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