*
Compass sees strong North America growth, up 9.1% in
organic
revenue
*
Smaller public sector exposure shields Compass from U.S.
shutdown disruptions
*
Shares dip on in-line expectations for 2026
(Rewrites with details of results, outlook)
Nov 25 (Reuters) - Food catering firm Compass Group's ( CMPGF )
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 ( ARMK ) 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.