Compass shares fall as catering giant disappoints investors on profit outlook

Shares fell 4% despite firm reporting a 15% jump in third-quarter organic revenue

Compass, whose food service brands cater to offices, universities and sports stadiums across 40 countries, emerged bigger from the pandemic as new clients turned to the contract caterers amid high inflation. Picture: iStock

Shares in Compass Group fell 4% at one stage, even after the firm maintained its annual outlook and reported a 15% jump in third-quarter organic revenues, as its update fell short of investors' hopes.

The world's largest catering group said it had benefited from new business, higher prices and strong demand in Europe during the third quarter, and kept its full-year guidance for underlying operating margin and organic revenue growth in place.