London, Feb 6, 2026, 08:47 GMT — Regular session
- Compass Group shares slipped in early London trading following Thursday’s steep selloff
- Caterer stuck to its 2026 outlook and announced it will switch to dollar trading on the LSE starting April 1
- Traders are focused on whether management can ease concerns about AI’s impact on office catering demand
Shares of Compass Group PLC (CPG.L) slipped roughly 1.4% to 2,149 pence by 08:47 GMT, following a previous close at 2,179 pence. The stock fluctuated between 2,145 and 2,184 pence during the session. (Investing)
The world’s biggest contract caterer reported 7.3% organic revenue growth for the quarter ending Dec. 31 on Thursday, excluding currency impacts and acquisitions. It stuck to its 2026 guidance, targeting roughly 10% underlying operating profit growth at constant currency. The $1.7 billion Vermaat acquisition, completed in December, was confirmed. The company also announced plans to switch its London Stock Exchange trading currency from sterling to U.S. dollars starting April 1, while maintaining its listing and FTSE index membership. Dividends will remain in sterling unless shareholders opt for dollars. CEO Dominic Blakemore described the quarter as “a strong start to the year.” A sector strategy “deep dive” is scheduled for Feb. 9. (TradingView)
The update failed to steady a jittery market: shares plunged as much as 8% on Thursday, hitting their lowest point in over three years. Investors are weighing how artificial intelligence might disrupt office work—and, by extension, workplace catering. Reuters noted that roughly 20% of Compass’s revenue comes from technology, professional, and financial services sectors. Blakemore told analysts there was “more opportunity than risk,” but JPMorgan warned the quarterly results were “unlikely to be sufficient to improve sentiment.” (Reuters)
The focus is on Business & Industry — the office and industrial contracts that fueled Compass’s growth and turned it into a key indicator for outsourcing demand. If white-collar headcount falls or office occupancy declines, investors fear growth won’t hold the steady pace seen since the pandemic.
Compass insists its contract mix extends beyond just desks, pointing to other portfolio segments it can rely on when certain markets cool off. Yet, the stock continues to trade as if it’s a stand-in for the “office economy,” a tricky spot as investors wrestle with pricing in a rapid tech transformation.
The planned shift to dollar trading has stirred some speculation in London. Dan Coatsworth of AJ Bell suggested Compass might be gearing up to move its primary stock listing from the UK to the US. The company, however, insists the change is intended to cut down on foreign-exchange volatility in its share price. (Sharecast)
Rivals like France’s Sodexo and U.S.-based Aramark jostle for many of the same corporate and institutional contracts, keeping the battle for outsourcing deals intense. For Compass, the focus isn’t so much on landing new clients but on how those contracts evolve if clients adjust staffing, schedules, or space.
The risk scenario involves cost inflation picking up again, a drop in pricing power, and weakening office demand all hitting volumes and margins simultaneously. There’s also uncertainty around whether shifts in health and eating habits—like the rise of weight-loss drugs—will reshape what clients purchase from foodservice operators.
Traders will watch closely to see if selling pressure eases following Thursday’s sharp drop, or if the stock stays trapped in a cycle where “good numbers” only spark new doubts. In that case, attention will shift from the headline growth rate to the next round of management’s explanations.
Up next: a dividend-related exchange-rate update on Feb. 10, with the dividend payment set for Feb. 26. Compass will release its half-year results on May 11. (Compass Group Corporate Website)
