Sodexo

SW: XPAR (FRA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€81.00	Ntqlt	Cmbfypqb

Narrow-Moat Sodexo Just Warming Up in 2022

Michael Field

Jan 6, 2022

Narrow-moat Sodexo delivered an upbeat first-quarter release, with organic revenue growth of 17.5% and group activity now standing at 95% of pre-pandemic levels, up from 87% at the full year mark. This certainly represents a change in fortune from where we stood at this point last year, when the company was reporting organic revenue decline of 21%. Despite the ongoing threat of new variants, such as omicron, the company is maintaining its guidance for full year 2022, targets we believe are eminently attainable. We reiterate our recently upgraded EUR 100 fair value estimate, with Sodexo being our favored way to play the food services space currently.

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