Talabat's Profit Upgrade Strengthens Delivery Hero's Turnaround Case as Woowa Exit Draws Near

Delivery Hero shares rally 46% in a week as activist investor Aspex pushes for change, Talabat raises profit outlook, and a potential $5.9B Woowa Brothers sale looms.

Delivery Hero's stock has staged an extraordinary recovery, driven by a confluence of activist pressure, leadership changes, and a striking profit upgrade from its Middle Eastern subsidiary. The shares closed at €28.99 on Friday, capping a weekly gain of roughly 46% — a rally that has nearly doubled the price from its March low and forced short sellers to scramble for cover.

The surge traces back to a shifting balance of power in the shareholder register. Activist investor Aspex Management has built a 15% stake and is pressing hard for greater profitability. That push triggered a management shake-up: co-founder Niklas Östberg announced in mid-May that he will step down as chief executive by March 2027, though he will remain at the helm to oversee the ongoing strategic review. The supervisory board has begun searching for a successor.

Talabat's record numbers add operational heft

Far from Germany, the strongest fundamental support comes from Delivery Hero's Dubai-listed subsidiary Talabat, which operates across the MENA region. Talabat reported first-quarter gross merchandise value of $2.7 billion, a 19% increase, while revenue jumped 23% to cross the $1 billion mark. More importantly, the unit now expects full-year net profit of between $300 million and $330 million.

Bernstein analyst Annick Maas attributed the improved outlook to "noticeably better business trends" in the region. The numbers reinforce Delivery Hero's earnings narrative, which has long been overshadowed by restructuring, debt reduction and portfolio questions. Talabat's accelerating profitability lends credibility to the parent company's adjusted operating profit target of €910 million to €960 million for the current year, with free cash flow projected above €200 million.

Woowa Brothers sale speculation heats up

Alongside the operational progress, the strategic review is zeroing in on a potential landmark disposal. According to media reports, Delivery Hero is exploring the sale of its South Korean subsidiary Woowa Brothers at a valuation of around 8 trillion won ($5.9 billion). Talks are said to have involved global heavyweights such as Uber, Alibaba and DoorDash. Neither the company nor any of the potential acquirers have confirmed the discussions, and no binding agreement is yet in place.

A deal of that scale would radically reshape Delivery Hero's balance sheet, providing ammunition for debt reduction and possibly share buybacks. The review, initiated in December 2025, remains the central focus for investors.

Management takes the stage at key conferences

The coming days will test management's ability to translate the rally into a sustained uptrend. On May 20, Delivery Hero executives will appear at the UBS Technology, Media and Internet Conference and the Berenberg European Conference. The following day brings the J.P. Morgan European Technology, Media and Telecoms Conference.

Market participants will press for updates on the Woowa process and the broader strategic review. Any concrete signals about timing or use of proceeds could reshape the debate around leverage reduction and capital allocation.

Technical picture brightens, next hurdles in sight

The stock's technical profile has improved markedly. At €28.99, the share price sits 34.6% above its 200-day moving average, while the relative strength index of 46.3 suggests the recent climb has not yet overheated short-term conditions. Resistance stands at around €30.80, with support pegged at €27.20.

The immediate formal milestone remains the annual general meeting scheduled for June 23, 2026, in Berlin. By then, investors will be looking for concrete outcomes from the strategic review — and for evidence that both Talabat's momentum and potential portfolio changes can underpin the rally with genuine operational substance.

Delivery Hero's first-quarter results already laid a solid foundation. Gross merchandise value rose nearly 9% to €12.5 billion, with segment revenue climbing to €3.7 billion. The quick-commerce business, which now accounts for almost a fifth of total volume, posted 30% growth. Saudi Arabia, led by strong subscription penetration, remained the standout driver in the MENA region. The question now is whether the strategic pieces can fall into place fast enough to sustain the kind of momentum that short sellers have already been forced to acknowledge.