Sodexo SA (SJ70) AI Stock Analysis

Company Guidance

For fiscal 2027, Sodexo expects organic growth of between +2% and +3%, with a minimum price increase of 2%, a net new contribution between 0.5% and 1%, like-for-like volume neutral to maybe slightly positive, and the North American contract reclassification impacting growth by around 30-35 basis points for the year and 100 basis points for Q1; organic growth is expected to start below the full year range and build progressively through the year, while the underlying operating margin is expected to be broadly in line with the 3.4% achieved in fiscal 2026, with H1 margin potentially slightly softer and H2 margin potentially slightly stronger. Other operating income and expenses are expected to represent a net expense of around EUR 240 million, including approximately EUR 190 million of restructuring cost; net financial expense is expected to be around EUR 190 million, leverage between 2.6x and 2.8x, and most of the remaining restructuring cash impact is expected in fiscal 2027, with a residual amount in fiscal 2028. Across the cycle, capital expenditure is expected to be between 2.5% and 3% of revenue, working capital is expected to be broadly neutral, and EUR 500 million-EUR 600 million is planned for technology and data as a cumulative investment through fiscal 2030; fiscal 2030 ambitions remain organic growth above 5%, net new business above 3%, and underlying operating margin above 5%.