Worldwide leader in the food-service industry, with strong positions in Europe, Japan, and the U.S.; Stable and predictable revenues and cash flow, thanks to established brands, long-term contracts, and high renewal rates (95% in fiscal 2002); Generally good return on capital (slightly less than 10%) and free cash flow generation, owing to the business' low capital requirements (about 3% of sales); Very diversified customer base, as no customer accounts for more than 3% of sales; and Good combination of food contracting, concession, and vending businesses, which help Compass outperform the organic growth rate of the industry. Leading consolidator in the industry, resulting in increasing leverage in the past two years; however, leverage is expected to decrease owing to a slower
