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 2003); 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 over the past two years; leverage is expected to decrease in the near future, however, owing
