Sodexo: Transition phase before coming back to accretive growth

Research evidence excerpt

Sodexo: Transition phase before coming back to accretive growth

Deutsche Bank

Research

Rating Company Date

Hold Sodexo 16 July 2026

Strategy Update

Europe

France

Reuters Bloomberg Exchange Ticker Price at 15 Jul 2026 (EUR) 52.70

EXHO.PA SW FP PAR EXHO

Price Target (EUR) 53.00

Leisure & Hotels

ADR ISIN 52-week range (EUR) 56.15 - 38.62

Catering

SDXAY US8337921048

Transition phase before coming back to

Valuation & Risks accretive growth

Andre Juillard

Transition phase in FY26-27e before accretive growth Research Analyst

Sodexo is organizing today a CMD in Paris to present its mid-term strategy based +33-1-4495-6585

on three pillars: i) Rebuilding the growth engine. ii) Simplifying and standardizing

Tim Barrett

the operating model. iii) Reigniting a high-performance culture. Research Analyst

+44-20-7541-1559

This strategy is targeting the following financial objectives: i) For FY27e: +2-3%

David Brockton

organic revenue growth and an underlying operating profit margin of 3.2-3.4% at

Research Analyst

constant rates. ii) For FY28-29e: Acceleration phase with progressive benefits from

+44-20-754-11721

the actions put in place in FY26-27e. iii) For FY30e: >+5% organic revenue growth,

including net new business above +3% and an underlying operating profit margin Shubhi Bansal

above 5%. Research Associate

To deliver such a strategy, Sodexo plans to have a disciplined capital allocation Ben Wild

framework: i) Increased investment, ii) Capital expenditure of around 2.5% to 3.0% Research Analyst

of revenue, iii) A balanced shareholder return policy with a dividend payout ratio +44-20-754-15334

maintained at 50%, iv) Targeted bolt-on acquisitions, v) A solid investment-grade

financial policy.

The phasing of these objectives is not surprising to us with first a phase of