(Reuters) -Food catering firm Compass Group’s annual profit and revenue slightly beat market expectations on Tuesday, fuelled by strong demand at office canteens and new business wins in its largest market of the United States.
The world’s largest caterer, which serves office workers at the likes of Google, Amazon and Microsoft, also forecast profit growth of about 10% and organic revenue growth around 7% for the new financial year, roughly in line with expectations.
Compass is also benefiting from new business wins in the region, including at J.P.Morgan’s new headquarters in New York, where it won the contract to run a pub and full service restaurants at the 60-storey location.
Concerns about the U.S. economy and the impact of President Donald Trump’s policies on healthcare and education had initially weighed on the outlook for catering firms.
But Compass’ diversified model and smaller exposure to the public sector, where a 43-day government shutdown had disrupted operations, has helped alleviate those fears.
U.S. rival Aramark had forecast an encouraging 2026 despite fourth-quarter revenue missing market expectations, while France’s Sodexo last month flagged slower revenue growth in 2026 due to challenges in the U.S., from contract losses and a lack of competitiveness.
Compass’ organic revenue in North America increased 9.1% in the year, with business and industry, mainly catering to office workers, particularly strong, while other sectors also performed well, the company said.
In recent years, the company has grown significantly in its key markets of the United States, Europe and Britain through acquisitions, and as more businesses outsource canteen operations to cut costs.
Compass also sources 85% of its food locally, making it less exposed to higher U.S. import tariff costs.
The company, which serves offices, hospitals, universities and sports and leisure events in about 30 countries globally, reported underlying operating profit of $3.34 billion on revenue of $46.1 billion for the year ended September 30.
Analysts in a company-compiled poll expected underlying operating profit of about $3.31 billion on revenue of $45.4 billion for fiscal 2025.
Its London-listed shares were down about 1.3% in early trading, with analysts citing the in-line guidance.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Mrigank Dhaniwala, Eileen Soreng and Clarence Fernandez)
