Home Food Delivery’s Questionable Value, for Consumers and Investors

Serving food with a side of technology was the perfect pandemic business model. Now old doubts are back with a vengeance: Just how many people will pay what it costs to have grub delivered to their door?

HelloFresh shares fell 9% Tuesday after the meal-kit company said it was targeting revenue growth of anywhere between 2% and 10% this year, stripping out currency movements—a wide bracket but below most analysts’ forecasts at the midpoint. Its profit guidance also came in below expectations.