Wonder Acquires Tastemade + February 2025 Investor Update

• HDR execution – e.g., Wonder is currently at 38 locations and is about to launch 15 in 12 weeks (including in the Philadelphia market); Wonder remains on track for +55 locations this year.
• Grubhub / Amazon partnership – Grubhub and Amazon have agreed in-principle to renew their partnership, offering Grubhub+ to Prime members; more broadly, the Grubhub integration is moving at a rapid clip.
• Chief Accounting Officer (CAO) hire – Alan Ramsay will be joining as Wonder’s CAO, having held the same title at Instacart (last 5+ years) and Yelp before that; Wonder considers this a key hire on its path towards IPO

Wonder Investor Update

February 2025

We remain laser-focused executing against our core strategy, building a 1P restaurant platform customers love: We launched three locations in January/February (in line with our plan), including two in Connecticut that were among our biggest yet. The pace picks up in the spring: 15 launches in 12 weeks, including Wonder’s first in Philly at the end of March. We remain on track for +55 this year.

HDR sales set a new monthly high in February, with a $97M annualized run rate. However, “class of ’23/’24”. locations have ramped slower than expected: Uber Eats removed Wonder restaurants from their platform (as we had anticipated, after the Grubhub deal) – although this has been partially offset by gains on Grubhub, and upside remains (e.g., in corporate). We have also been holding back a bit on marketing, in preparation for a big push starting Q2, and with our new Head of Wonder Marketing (Courtney Lawrie) fully up to speed.

The “class of ’23” locations continue to deliver steady restaurant-level operating margins, with expected gains coming from sales growth picking up in Q2. Recently launched suburban locations (“class of ’24/’25”) are already profitable, overall, led by average rent of just 7% of revenue.

We are also excited to share several big updates this month:

Tastemade acquisition:

Wonder acquired Tastemade – a media company that creates award-winning, food-centric video content and original programming – in an all-stock deal for $48M enterprise value. Tastemade generated ~$40M revenue and positive FCF last year, and we anticipate nearly $5M in annualized cost savings. The move will help build Wonder’s 1P restaurant brands and accelerate our ads platform across Wonder, Blue Apron and Grubhub. This is a big opportunity: Ads generate ~$1B for DoorDash and Uber, and ~20% of Instacart’s revenue. Larry Fitzgibbons, co-founder of Tastemade and media industry veteran, will lead Wonder Media, Advertising & Content. Press will hit throughout the day, including in the Wall Street Journal.

Grubhub / Amazon partnership:

We are close to signing a renewed 5-year partnership with Amazon, in which Prime members will continue to receive free Grubhub+, and Amazon will expand its marketing commitments. In lieu of Amazon’s prior warrants in Grubhub, we would make a “value exchange payment” (at the earlier of an IPO or 5 years), linked to 3P gross order value (GOV). More broadly, the Grubhub integration plans are moving at a rapid clip: We recently eliminated ~525 roles, realizing nearly $100M annualized savings (~30% vs. pre-acquisition). We are beginning to invest a portion back into the customer value prop and are already starting to see positive signs, providing confidence that Grubhub can return to growth by the end of this year.

Chief Accounting Officer key hire:

We are thrilled to announce Alan Ramsay as Wonder’s first Chief Accounting Officer (CAO). Alan most recently served as CAO of Instacart, helping take the company public in 2023, and previously held the same title at public company Yelp. In addition, CFO Kelley Morrell will be departing Wonder to start a new venture. In her nearly two years, Kelley helped lead several major acquisitions, raise $1.4B in capital, and strengthen the Finance function. Jay Naik will serve as interim CFO.

We will be providing more detail in our next Quarterly Investor Update (Q1 will be sent in April).

Marc Lore
Founder, Chairman & CEO of Wonder