DoorDash surge makes the delivery company more valuable than many of the franchises it delivers for

DoorDash Biker
DoorDash Biker

  • The 86% surge in DoorDash’s first day of trading on Wednesday sent the delivery company’s valuation soaring to $72 billion. 
  • That valuation makes DoorDash more valuable than many of the companies it delivers for, including Chipotle, Taco Bell, KFC, and Pizza Hut combined.
  • The delivery company is now worth even more than all but 2 long-haul delivery companies in the railroad space, and is just a 7% move away from eclipsing FedEx in value.
  • Watch DoorDash trade live here.

DoorDash, the last-mile delivery company that posted a strong IPO debut on Wednesday, is now worth more than many of the companies it makes deliveries for. 

On Wednesday, DoorDash surged 86% in its first day of trading, vaulting its market valuation to $72 billion.

That surge makes DoorDash more valuable than the likes of Chipotle, Taco Bell, KFC, and Pizza Hut combined.

Chipotle has a market valuation of $38 billion, while Yum Brands, parent company to Taco Bell, KFC, and Pizza Hut, sports a market valuation of $32 billion.

Other popular fast food companies that DoorDash delivers for and has surpassed in market valuation include Domino’s, Burger King, and Wendy’s

Read More: Morgan Stanley is warning that the stock market’s economic recovery trade may soon be over. Here are 4 strategies they recommend for finding the returns that still exist.

According to DoorDash, some of the top 10 food items delivered by the company in 2020 include tacos, burritos, pizza and sushi. 

DoorDash’s market valuation is also competing with another group of well-established delivery companies that focus on long-haul, cross country deliveries: railroads.

As of Wednesday’s close, DoorDash is now more valuable than all but two publicly traded railroad companies. The firm’s $72 billion valuation has surpassed CSX Corporation’s $69 billion valuation, as well as Norfolk Southern Corporation’s valuation of $60 billion. 

The next delivery company DoorDash is close to surpassing in market value? FedEx. A 7% surge higher from Wednesday’s close would propel DoorDash to overtake FedEx’s current market valuation of $77 billion.

In the first nine months of 2020, DoorDash recorded $1.9 billion in revenue and is not yet profitable, while FedEx notched $54 billion in revenue and $1.2 billion in profits over the same time period.

Read more: We spoke to the top 5 European fund managers of 2020 to uncover their tips and tools for delivering stellar returns – and their star stock-picks for 2021

Read the original article on Business Insider