Compass Group Plc

Overview Key strengths Key risks Leading global player in the food services industry with a portfolio of established brands and an extensive global footprint. Competitive and fragmented industry, with relatively low barriers to entry and limited pricing flexibility. Track record of maintaining strong credit metrics and liquidity, along with solid free operating cash flow (FOCF). Exposure to macroeconomic uncertainties in Europe as well as North America. Supportive financial policy including a conservative leverage target over the medium term. Despite a strong rebound after the pandemic, the industry remains sensitive to health and safety issues. Solid cost flexibility and proven ability to pass through increases in food prices and labor costs. The company continues to see strong topline growth, with organic

...Compass' strong growth and stable EBITDA margins support its credit measures. The company continues to see strong topline growth, with organic growth of 10.6% in fiscal 2024 (ending Sept. 30, 2024) and about 9.2% in the first quarter of fiscal 2025 (ending Dec. 31, 2024). Favorable market conditions, new business wins, a high client retention rate of 96%, price...

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