# Compass cashes in on more firms opting to outsource catering

By Russ Mould — 2026-05-11

Russ Mould, investment director at AJ Bell, said: “In the current uncertain environment, the steadiness and resilience demonstrated by Compass had plenty of investors with their knives and forks at the ready, hungry to gobble up the shares.

“The company is benefiting from a long-term shift from businesses and other large organisations doing their catering in-house to having third parties do the job.

“This is reflected in a strong set of first-half results which are accompanied by increased guidance for the full year.

“Equally as important as winning new business is holding on to existing clients and Compass got this part right too – with retention rates remaining healthy.

“While acquisitions have been a part of the growth story, organic growth in the first half was solid.

“As the leading operator in this market, Compass’ scale allows it to achieve significant operational efficiencies and strike attractive deals with suppliers, and this is reflected in profit growing faster than revenue.

“This lends encouragement to the view that Compass can deal with any inflationary pressures associated with the Iran war and resulting energy price shock.

“A strong balance sheet and robust cash generation enabled a generous increase in the dividend which speaks to the company’s confidence in the outlook.”

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