Compass Group PLC (CPG) Stock Today: Citi Upgrade, Insider Buying and Earnings Momentum

Compass Group PLC (LON: CPG), the world’s largest contract caterer, stayed firmly on investors’ radar on Thursday as a fresh broker upgrade, insider share buying and ongoing reaction to this week’s full‑year 2025 results shaped market sentiment.

Compass Group share price today

Compass Group shares closed around 2,383p in London on 27 November 2025, up roughly 0.5% on the day, modestly outperforming the FTSE 100, which edged up about 0.2%. ^[1]

The move comes after a sharp pull‑back earlier in the week, leaving the stock still well below its highs and roughly 11% down year‑to‑date, according to recent Financial Times data. ^[2]

Key Compass Group news on 27 November 2025

The main Compass Group‑related headlines published today include:

Citigroup upgrade to “buy” with a 3,000p price target ^[3]
Board insider Leanne Wood’s share purchase disclosed overnight ^[4]
Automated earnings‑call coverage highlighting robust FY25 performance ^[5]
A new valuation review asking if CPG is trading near intrinsic value ^[6]

These sit on top of a busy news flow earlier in the week, including full‑year results, AI/data‑centre growth commentary, and a €1.5bn European acquisition. ^[7]

Citi lifts Compass Group to “buy” with 3,000p target

In a London broker round‑up published this morning, Citigroup upgraded Compass Group from “neutral” to “buy” and lifted its price target from 2,750p to 3,000p. ^[8]

Based on today’s closing level near 2,383p, Citi’s target implies roughly 26% potential upside if its thesis plays out. The upgrade follows Tuesday’s full‑year 2025 results, where Compass reported stronger‑than‑expected profit and reiterated guidance for solid growth in the year ahead. ^[9]

The new rating reflects:

Resilient organic growth, especially in North American business & industry (office catering)
Margin progress despite easing food inflation
Strong cash generation and dividend growth
Structural tailwinds from clients outsourcing food services and using catering to support employee retention

Insider purchase sends a confidence signal

Fresh regulatory filings highlighted that Leanne Wood, a Compass Group insider, bought 444 shares on 25 November at 2,392p, a transaction worth about £10,600. ^[10]

The MarketBeat report noting the trade also pointed out that the shares recently traded near the lower end of their 52‑week range and below both the 50‑day and 200‑day moving averages, after a bout of post‑earnings selling on heavy volume. ^[11]

While a single small purchase doesn’t transform the investment case, insider buying after a pull‑back is typically read as a modest vote of confidence in the company’s long‑term prospects from within the boardroom.

Earnings‑call coverage reinforces FY25 growth story

News desks and automated services continued to digest Compass Group’s full‑year 2025 results and earnings call, with fresh coverage today summarising key themes: ^[12]

Underlying operating profit grew about 11.7% at constant currency, to roughly $3.3–3.4bn
Organic revenue rose around 8.7% to about $46.1bn, beating market expectations
Underlying operating margin improved to 7.2%, up 10 basis points year‑on‑year
Free cash flow approached $2bn, with cash conversion close to 88%
Net new business of ~4.5% and client retention above 96% kept growth broad‑based

Management guided to around 10% underlying operating‑profit growth and roughly 7% organic revenue growth for the new financial year, broadly in line with consensus forecasts. ^[13]

Commentary across outlets emphasised the strength of North America, especially office and technology‑sector catering, alongside solid performances in healthcare, education and sports & leisure venues. ^[14]

Full‑year 2025 in numbers

According to Compass Group’s official results release and supporting analysis: ^[15]

Revenue: about $46.1bn, up roughly 9–10% on a statutory basis
Underlying operating profit: up 11–12% at constant currency
Operating margin: increased to 7.2%
Statutory operating profit: grew around 15%
Underlying free cash flow: about $1.98bn, up more than 13% year‑on‑year

On the shareholder‑returns side, data from Hargreaves Lansdown indicates: ^[16]

Total ordinary dividend for FY25 of roughly $0.66 per share, up from $0.60 in 2024
A prospective final dividend of 43.3 US cents, expected to be paid in February 2026 (subject to approval)
A dividend yield around 2%, with earnings covering the payout about twice over

Overall, the numbers paint a picture of a business delivering steady double‑digit profit growth while maintaining a disciplined balance between reinvestment, acquisitions and cash returns.

Strategic focus: AI data centres, tech clients and European M&A

Today’s reaction is still anchored in strategic themes that surfaced in this week’s broader coverage:

Riding the AI and data‑centre boom

A Financial Times piece highlighted how Compass is targeting the artificial intelligence and data‑centre build‑out as a major growth opportunity. The group already provides catering at remote data‑centre construction sites and wants more contracts as Big Tech companies plan to spend over $300bn on data‑centre infrastructure this year. ^[17]

Beyond construction, Compass is deepening relationships with technology firms that see high‑quality food on campus as part of their talent strategy, using catering to support staff retention and hybrid‑working policies. ^[18]

Vermaat acquisition and European expansion

Several outlets, including DirectorsTalk and Investors Chronicle, underlined the strategic rationale for acquiring Dutch premium food‑service operator Vermaat in a deal valued at around €1.5bn. ^[19]

The transaction:

Expands Compass’s footprint in continental Europe, particularly in high‑end corporate and leisure catering
Adds more exposure to airport, travel and hospitality venues
Comes alongside a pipeline of smaller bolt‑on deals, which together lift growth but also increase borrowing

Investors Chronicle noted that the ramp‑up in M&A means leverage is likely to push above Compass’s usual target range in 2026, making execution and cash generation key watch‑points over the next 18–24 months. ^[20]

Broader international expansion

Earlier this year, Reuters reported that Compass plans to increase its Indian workforce by up to 75% over three years, as it wins more contracts with global capability centres and domestic corporates. ^[21] This underscores the company’s long‑term focus on emerging‑market growth, alongside its mature but still expanding US and European operations.

Valuation: quality at a price?

A new Simply Wall St article published today asks whether investors are over‑paying for Compass Group shares at current levels, based on discounted cash‑flow calculations and peer comparisons. ^[22]

Key valuation markers include:

A price/earnings multiple around the mid‑20s on latest earnings
EPS growth in the low‑double‑digits
A dividend yield of roughly 2%, with room for further increases if cash generation remains strong

The article concludes that the stock is not obviously cheap, but that its premium partly reflects Compass’s scale, resilience and consistent execution through different economic cycles. ^[23]

US listing and broader investor access

Another development this week has been Compass Group’s move onto the OTCQX Best Market in the United States, making its shares easier to access for US‑based investors under over‑the‑counter tickers such as CMPGF and CMPGY. ^[24]

Combined with the company’s FTSE 100 status in London, this dual accessibility could support trading liquidity and global institutional ownership over time.

ESG and community initiatives in focus

Beyond hard numbers, Compass has continued to emphasise ESG themes:

In the US, the company was recognised among the “Healthiest 100 Workplaces in America” earlier in November for its focus on employee wellbeing. ^[25]
In the UK, Compass is sponsoring community events such as the “Food Invention Challenge” in Chertsey on 27 November 2025, aimed at tackling hunger and food waste while engaging volunteers. ^[26]

These initiatives feed into a broader narrative of sustainability, health and local community impact, which is increasingly important to large corporate and public‑sector clients.

Outlook: what to watch after today

Putting today’s news together, Compass Group enters the new financial year with:

Solid growth guidance (c. 7% organic revenue, ~10% profit growth) ^[27]
Healthy cash generation to fund dividends, acquisitions and potential buybacks ^[28]
Strategic exposure to structurally growing areas like AI data centres, healthcare and education catering ^[29]

But investors will also be monitoring:

The impact of higher interest costs from recent and future acquisitions ^[30]
Whether office attendance and corporate catering volumes hold up if economic growth slows, particularly in North America ^[31]
How quickly leverage can be brought back towards Compass’s target range as deals bed in ^[32]

For now, 27 November 2025 finds Compass Group PLC at an interesting juncture: a high‑quality, cash‑generative global caterer, enjoying a supportive broker upgrade and boardroom buying, but still working to convince the market that its recent earnings momentum and strategic bets can justify a premium valuation.

This article is for informational and news purposes only and does not constitute investment advice. Investors should do their own research or consult a regulated financial adviser before making investment decisions.

Compass Stock Analysis