Sodexo Earnings: Full-Year Results Confirm Strong Momentum Still With the Business

Narrow-moat Sodexo finished out the fiscal year strongly, delivering organic revenue growth of close to 12%, with operating margins now back above prepandemic levels. The most interesting part of the release was the outlook—management is expecting 6%-8% organic revenue growth over the next two years, a huge uplift from prepandemic levels. Additionally, management has guided to between 30 and 40 basis points in operating margin improvement per year. We reiterate our EUR 118 fair value estimate and believe the shares offer plenty of upside potential from here.