Jin Lee | Bloomberg | Getty Images
Shares of Grubhub surged as much as 10% on Wednesday after The Wall Street Journal reported that the company has hired financial advisers to explore strategic options, including a possible sale.
A Grubhub spokesperson told CNBC that the company doesn’t “comment on market rumors or speculation.”
The food delivery company has struggled in recent months after it posted disappointing third-quarter earnings and gave weak fourth-quarter guidance in October.
Grubhub has lost more than half of its market value this year as it continues to buckle under pressure from competitors including UberEats, DoorDash and PostMates. Grubhub has ramped up its marketing spend to better compete with its rivals, which have flooded the market with rewards and incentives, causing consumers to shift from one service to another.
–CNBC’s Jim Forkin contributed to this report.
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