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US office canteen demand lifts Compass' profit above expectations
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US office canteen demand lifts Compass' profit above expectations
Nov 25, 2025 12:57 AM

*

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.

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