Sodexo

SW: XPAR (FRA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	LQ	LOCK\|#wPF	LOCK\|gbbvMx

Sodexo Earnings: Stock Price Falls on Weak European Volumes; Shares Undervalued

Ben Slupecki

Jan 7, 2025

Narrow-moat Sodexo reported first-quarter fiscal 2025 earnings, delivering below-consensus organic revenue growth, sending shares down 8% on Jan. 7. Organic growth, which grew 5% in the quarter, was harmed by weak European volumes and decreased significantly from 7.7% in the fourth quarter of fiscal 2024. Management reiterated its fiscal 2025 guidance of organic revenue growth of 5.5%-6.5% and 30-40 basis points of operating margin growth. We maintain our EUR 96 fair value estimate.

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Sodexo

Sodexo Earnings: Stock Price Falls on Weak European Volumes; Shares Undervalued

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