Sodexo Shares Fall On Concern Over Slow Recovery

PARIS – French food services and facilities management group Sodexo vowed to accelerate its sales and profit growth under its new strategy plan but its shares fell on concerns the road to recovery would be long.

Shares in Sodexo, the world’s second-biggest catering company after Compass Group have come under strong pressure this year after warnings mostly related to weaknesses in the North American business where cost savings have lagged and several large contracts have taken time to pay off.

Sodexo said on Thursday it planned to deliver revenue growth above 3 percent by fiscal year 2019/20, and then return to an underlying operating profit margin above 6 percent.

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