Story
Sodexo Lifts 2027 Growth Forecast, Eyes North American Turnaround
Summary
The French catering group raised its organic revenue growth target for 2027, signaling a strategic pivot to improve performance in the United States, its single largest market.
French food services and facilities management company Sodexo on Thursday announced it expects to accelerate revenue growth from 2027, banking on a strategic turnaround and expansion in North America.
Upgraded Financial Targets
Sodexo outlined a new set of financial goals, projecting a significant uptick in its growth trajectory. The company is now targeting 2% to 3% organic revenue growth in 2027, a notable increase from the 1.2% to 1.5% growth expected in 2026, according to a Reuters report.
Looking further ahead, the group aims for organic revenue growth to exceed 5% by the full-year 2030. It also set a goal for net new business to contribute more than 3% to its growth by that time.
A Strategic Focus on the U.S.
The strategy hinges on reviving performance in its largest market. "In terms of countries, obviously, the absolute priority is the United States," CEO Thierry Delaporte said on a call with reporters. North America currently generates approximately half of the company's total revenue.
AdDelaporte highlighted the strategic importance of the region, calling it "the largest market in the world, and it’s also a rapidly growing market." The push comes after the company warned in October 2025 that weak results in its North American education and healthcare segments would impact its performance.
Context for the Turnaround
Today's announcement follows a strategic review initiated by Delaporte in April. At the time, the new CEO cited a need to address issues of underinvestment, inconsistent performance across contracts, and slow internal decision-making.
The updated growth targets signal management's confidence that its new operational focus can resolve these past weaknesses and restore a stronger growth profile for the company, beginning in 2027.
Read next
More on Stocks
Netflix, HPE, and Fluence Hit by Key Analyst Downgrades
Wall Street analysts issued significant downgrades for several high-profile companies, with Netflix receiving its first-ever 'Sell' rating and Fluence Energy facing a cascade of cuts after slashing its guidance.
California's Proposition 40 Proposes One-Time 5% Tax on Billionaires Amid Heated Debate
California voters will decide in November on Proposition 40, a ballot initiative to impose a one-time 5% tax on its wealthiest residents. The measure faces significant opposition and uncertain polling despite the state's large concentration of billionaire wealth.
China Rare Earth Group in Reported Talks to Acquire Shenghe Resources
State-owned China Rare Earth Group is reportedly in talks to buy Shenghe Resources, a move that would consolidate Beijing's control over the sector and create a stake in a U.S. producer. Shenghe has denied the report.
Saudi, Gulf Stocks Decline After Houthi Group Claims Attack on Riyadh
Stock markets in Saudi Arabia and across the Gulf region fell after Yemen's Houthi group claimed responsibility for missile and drone attacks on Riyadh, amplifying investor concerns over escalating regional conflict.