Compass Group

Should I buy Compass Group stock in 2025?

Pauline Laurore
P. Laurore updated on 2 May 2025

verified information

Compass Group
4.3
hellosafe-logoScore

Is Compass Group stock a buy right now?

At the start of May 2025, Compass Group PLC trades at approximately 2,543 GBp on the London Stock Exchange, with a robust average daily trading volume of 3.61 million shares—underscoring persistent investor interest in the UK’s leading contract food and support services provider. The company’s recent Q1 results reflected sustained strength: organic revenue growth surpassed 7.5%, and margins continued to improve, aligning with full-year guidance. Notably, Compass Group has sharpened its focus on core markets, exiting nine non-core geographies in 2024 while complementing this with targeted acquisitions across Europe, such as HOFMANNS in Germany and CH&CO in the UK and Ireland. These strategic moves are fostering operational efficiencies and unlocking fresh growth opportunities, especially as demand for outsourced food services accelerates in both corporate and public sectors. Despite a relatively high valuation (P/E 40.55) and some recent technical softness, analyst sentiment remains broadly constructive, supported by the company’s innovation and strong client retention. For investors seeking stable exposure to a defensive yet steadily growing sector, Compass Group’s consensus target price—set at 3,306 GBp by over 33 national and international banks—reflects ongoing confidence in its fundamentals and future prospects.

  • Consistent double-digit organic revenue growth and margin progression reported for FY 2024.
  • Strong client retention rates of 96% highlight customer loyalty and operational dependability.
  • Strategic focus on core markets and timely acquisitions boost growth and efficiency.
  • Robust cash generation supports rising dividends and ongoing shareholder returns.
  • Market leader in global contract food services with diversified, resilient sector exposure.
  • Current valuation is elevated (P/E 40.55), limiting immediate upside compared to peers.
  • Trading below 50- and 100-day moving averages suggests possible medium-term share price softness.
Table of Contents
  • What is Compass Group?
  • How much is Compass Group stock?
  • Our full analysis on Compass Group </b>stock
  • How to buy Compass Group stock in United Kingdom?
  • Our 7 tips for buying Compass Group stock
  • The latest news about Compass Group
  • FAQ
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Why trust HelloSafe?

At HelloSafe, our expert has been monitoring the performance of Compass Group for more than three years. Each month, hundreds of thousands of users in the United Kingdom rely on our insights to interpret market trends and pinpoint the best investment opportunities. Our analyses are intended for informational purposes only and should not be construed as investment advice. In line with our ethical charter, we have never received, and will never accept, payment from Compass Group.

What is Compass Group?

IndicatorValueAnalysis
🏳️ NationalityUnited KingdomUK-based multinational, aligning with strong home market presence and governance.
💼 MarketLondon Stock Exchange (LSE)Primary listing in London, ensuring visibility and liquidity for UK investors.
🏛️ ISIN codeGB00BD6K4575Unique international identifier for shares, essential for trading and settlement.
👤 CEODominic BlakemoreBlakemore has led strategic refocus and successful growth since 2018.
🏢 Market cap£42.62 billionLarge-cap status underlines strong sector leadership and institutional investor interest.
📈 Revenue$42.2 billion (FY 2024)Significant revenue base, driven by organic growth and portfolio focus.
💹 EBITDA$3.37 billion (FY 2024)Robust operating cash flow supports reinvestment, M&A, and dividends.
📊 P/E Ratio (Price/Earnings)40.55High valuation signals growth optimism but also potential limited near-term upside.
Key indicators and analysis for the company.
🏳️ Nationality
Value
United Kingdom
Analysis
UK-based multinational, aligning with strong home market presence and governance.
💼 Market
Value
London Stock Exchange (LSE)
Analysis
Primary listing in London, ensuring visibility and liquidity for UK investors.
🏛️ ISIN code
Value
GB00BD6K4575
Analysis
Unique international identifier for shares, essential for trading and settlement.
👤 CEO
Value
Dominic Blakemore
Analysis
Blakemore has led strategic refocus and successful growth since 2018.
🏢 Market cap
Value
£42.62 billion
Analysis
Large-cap status underlines strong sector leadership and institutional investor interest.
📈 Revenue
Value
$42.2 billion (FY 2024)
Analysis
Significant revenue base, driven by organic growth and portfolio focus.
💹 EBITDA
Value
$3.37 billion (FY 2024)
Analysis
Robust operating cash flow supports reinvestment, M&A, and dividends.
📊 P/E Ratio (Price/Earnings)
Value
40.55
Analysis
High valuation signals growth optimism but also potential limited near-term upside.
Key indicators and analysis for the company.

How much is Compass Group stock?

The price of Compass Group stock is rising this week. Currently trading at 2,543.00 GBp, the stock has gained 1.64% today and is up 2.41% over the past seven days. With a market capitalisation of £42.62 billion and an average three-month daily trading volume of 3.61 million shares, Compass Group stands as a market heavyweight. Its price-to-earnings ratio is 40.55, the dividend yield is offered at 1.90%, and the stock carries a beta of 0.60, indicating relatively low volatility compared to the market. Investors may find the company’s steady growth and resilience appealing, though the premium valuation warrants thoughtful consideration.

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Our full analysis on Compass Group stock

Having carefully reviewed Compass Group PLC's latest financial results and scrutinised its share price dynamics over the past three years, our analysis leverages a blend of up-to-date financial indicators, technical signals, market data, and peer benchmarking processed through proprietary screening algorithms. The results highlight a multifaceted opportunity in a defensive sector poised for technological evolution and consumption-driven growth. So, why might Compass Group once again emerge as a potential strategic entry point into the European and global food services sector in 2025?

Recent Performance and Market Context

Compass Group has exhibited a robust recovery narrative supported by both solid fundamentals and favourable market context. As of 2 May 2025, the share price stands at 2,543.00 GBp, registering a 1.64% gain during the latest trading session and a 2.41% advance over the past week—a telling resilience in the context of a challenging six-month window (-7.53%). Importantly, the stock boasts an impressive 14.5% annual advance, substantially outperforming several sector peers and the broader FTSE indices.

Recent events underline confidence in Compass’s business trajectory. In its February 2025 trading update, the company reported organic revenue growth of over 7.5% in Q1—fully aligned with expectations and reinforcing management’s guidance for the full year. This positive momentum comes as Compass continues to reshape its portfolio, divesting from nine non-core markets in 2024 to focus capital and resources where they can generate superior long-term returns. Strategic acquisitions in key European markets (notably HOFMANNS, CH&CO, Dupont Restauration, and 4Service AS) further secure a platform for continued growth.

More broadly, global demand for outsourced food services continues to rise, supported by changing corporate practices, a growing emphasis on workplace wellbeing, and increasing outsourcing penetration in Europe and beyond. In this environment, best-in-class operators like Compass are uniquely positioned to consolidate market share and unlock value through scale and efficiency.

Technical Analysis

From a technical perspective, Compass Group shares appear to be navigating a tactical inflection. The stock is currently trading above its 20-day moving average (2,499 GBp), while remaining marginally under the 50-day (2,581 GBp) and 100-day (2,648 GBp) averages—a configuration often observed at the outset of recovery phases, where short-term momentum begins to outpace medium-term drag.

  • RSI (14-day) at 51.92 sits comfortably in the neutral zone, indicating neither overbought nor oversold conditions and pointing to upside flexibility if buying interest intensifies.
  • MACD (12,26,9) has turned positive on a short-term basis, with a reading of +10.00, hinting at an emerging drift higher as medium-term pressures abate.
  • Well-defined support at 2,400 GBp and resistance at 2,830 GBp offer clear technical reference points—recent price action holding above support while challenging resistance could result in a break higher on any positive catalysts.

The current technical backdrop, with momentum stabilising and buyers finding value near historical support, suggests the stock may be recalibrating for a new bull phase, offering investors an attractive risk/reward setup for short- and medium-term positioning.

Fundamental Analysis

  • Revenue for FY2024 reached $42.2 billion, up 10.6% organically year-on-year. Growth is broad-based across geographies, buoyed by strong first-time outsourcing wins and impressive client retention (96%).
  • Operating profit (underlying) surged 16.4% to $2,998 million, and margins improved by 30bps to 7.1%. Underlying EPS advanced by 14.6%, with EBITDA at $3.37 billion, reflecting both robust top-line expansion and diligent cost discipline.
  • The company raised its annual dividend by 13.7%, demonstrating both conviction in its growth trajectory and commitment to rewarding shareholders.

Valuation wise, Compass trades at a P/E ratio of 40.55—a premium, but largely justified by its sector leadership, reliable earnings quality, and recurring, non-cyclical cash flows. Compared to global consumer service peers, the multiple reflects confidence in long-term organic growth, margin progression, and continued acquisition opportunities. With an analyst consensus target price of 2,755.22 GBp (an implied upside of over 8%), Compass may present attractive medium- and long-term value, especially for high-quality, growth-at-a-reasonable-price portfolios.

Above all, Compass’s structural strengths—global scale, diversified revenue streams, flexibility to innovate on ESG and menu offerings, and embedded technology for operational efficiency—create an enduring competitive moat.

Volume and Liquidity

Trading liquidity remains a hallmark of confidence and market interest in Compass shares. With a three-month average daily volume of 3.61 million shares and a free float of 94.78%, the shares exhibit excellent marketability and tight bid-ask spreads—characteristics highly valued by institutional investors. High trading volumes around support levels signal robust investor engagement and suggest that price dips are being well-supported by new entrants or incremental accumulation from existing holders.

Furthermore, institutional ownership (75.39%) confirms the stock’s status as a core holding for UK and international managed portfolios, while manageable insider ownership (0.17%) and transparent bi-annual dividend payments enhance appeal for both retail and professional investors.

Catalysts and Positive Outlook

  • Accelerating outsourcing trends in Europe and North America, driven by corporates seeking operational agility, cost control, and a focus on core competencies, will expand Compass’s total addressable market.
  • Integration of recent acquisitions promises synergy realisation and new cross-selling platforms, particularly in large, underpenetrated regions.
  • Ongoing investment in digitalisation, sustainability, and innovative food solutions keeps Compass relevant to evolving consumer tastes and regulatory demands.
  • Management’s guidance for high single-digit operating profit and organic revenue growth in 2025 supports an optimistic trajectory.
  • The group’s strong balance sheet and resilient free cash flow generation provide ample room for further attractive bolt-on deals or incremental capital return.

Sector-wise, the food service outsourcing space benefits from structural tailwinds—urbanisation, flexible working arrangements, and rising demand for tailored, healthy, and ESG-compliant food offerings all serve to underpin demand.

Investment Strategies

  • Short-term: The recent rebound off key support levels and improving technical indicators hint at near-term trading upside, especially with volatility potentially catalysed by upcoming earnings or acquisition updates.
  • Medium-term: Investors focused on 6–12 month windows could see further share price appreciation driven by operating momentum, synergy crystallisation, and continued buyback or dividend enhancements—especially if Compass outperforms peers or delivers positive surprises on margin or revenue growth.
  • Long-term: For those constructing core sector allocations, Compass offers rare exposure to a global, defensible growth story, combining recurring cash generation, a progressive dividend, and prudent capital allocation. Entry at or near the current technical base—well above support but still below all-time highs—suggests a compelling foundation for durable compounding.

Aggressive investors may look to scale in selectively on minor pullbacks toward the 2,400–2,500 GBp support zone, while more cautious portfolios might time entries around upcoming financial updates or in anticipation of acquisition-related progress.

Is It the Right Time to Buy Compass Group?

Bringing together financial, technical, and strategic perspectives, Compass Group demonstrates a confluence of strengths: double-digit organic growth, sector-leading operating margins, proven management, and a clear focus on growth markets. The current valuation, while at a sector premium, reflects highly defensible earnings power, superior client retention, and the prospect of further upside as positive sector and company-specific catalysts unfold.

Technical signals are stabilising, volume remains robust, and strategic portfolio optimisation continues to redefine the group’s core. For investors seeking participation in the transformation of the food services sector, Compass may well be entering a new phase of outperformance, with risk/reward increasingly tilted to the upside.

In summary, the fundamentals, technical setup, and strategic positioning all appear to justify renewed and serious interest. With the sector set for further evolution and Compass Group poised at the nexus of multiple growth trends, the stock seems to represent an excellent opportunity for those targeting robust exposure to global consumer services—laying the groundwork for compelling returns in 2025 and beyond.

For disciplined investors prepared to embrace a market-leading, innovative, and increasingly agile sector champion, Compass Group’s current profile may offer precisely the blend of stability and upside potential sought in today’s market landscape.

How to buy Compass Group stock in United Kingdom?

Buying Compass Group (CPG) shares online is straightforward and secure when you choose a regulated UK broker. Investors can access the stock in just a few clicks via the London Stock Exchange. The two main ways to invest are: spot buying, where you actually own the shares, and trading Contracts for Difference (CFDs), which allow for leveraged speculation on the share price without taking ownership. Both methods are accessible, but they suit different needs and risk profiles. To help you get started, you’ll find a detailed comparison of leading UK brokers further down this page.

Spot Buying

When you buy Compass Group shares for cash, you become a shareholder and own real shares listed on the London Stock Exchange. This traditional investment method means you can benefit from price appreciation and dividends if applicable. UK online brokers typically charge a fixed commission per order, usually between £5 and £10.

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Important Example

For example, if the Compass Group share price is 2,543 GBp (or £25.43), a £1,000 investment (around $1,250) would let you buy about 39 shares (£25.43 × 39 = £992), factoring in a typical brokerage fee of £5.
✔️ Gain scenario:
If the share price rises by 10%, your holding increases in value to £1,100.
Result: That’s a £100 gross gain, or +10% on your initial investment, excluding fees and taxes.

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on Compass Group’s share price movements without actually owning the shares. CFDs are popular for their leverage: you can control a larger exposure with a smaller initial outlay, but you’re also exposed to higher risk. Fees vary by broker, but commonly include the spread (difference between buy/sell price) and overnight financing costs if you hold positions beyond a day.

icon

Important Example

For example, putting £1,000 into a Compass Group share CFD with 5x leverage gives you exposure to £5,000 worth of shares.
✔️ Gain scenario:
If the share price climbs by 8%, your position rises by 8% × 5 = 40%.
Result: That’s a £400 gain on a £1,000 deposit (excluding fees and potential overnight charges).

Final Advice

Before investing, it is crucial to compare brokers’ fees, trading platforms, and terms, as these can significantly affect your overall returns. The method you choose—spot buying for long-term growth and dividends, or CFD trading for leveraged, short-term strategies—depends on your personal objectives and comfort with risk. For more details, our trusted broker comparison tool is available further down the page to help you make the right choice.

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Forex Expert
#1Recommended Offer
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4.9
Eightcap, FCA-regulated, offers CFD trading & is the UK’s only dedicated TradingView broker
5 things to know about Eightcap

Is EightCap reliable?

Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.

Why choose EightCap?

EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.

What are the fees at EightCap?

At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.

Who is EightCap for?

Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.

Is it easy to withdraw your money from EightCap?

Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.

Is EightCap reliable?

Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.

Why choose EightCap?

EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.

What are the fees at EightCap?

At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.

Who is EightCap for?

Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.

Is it easy to withdraw your money from EightCap?

Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.

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30+ million users
#2Recommended by Forbes
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51% of CFD accounts lose money. You will never lose more than your investment.
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Is eToro reliable?

Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.

Why choose eToro?

With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.

What are the fees at eToro?

eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).

Who is eToro for?

eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).

Is it easy to withdraw your money from eToro?

Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.

Is eToro reliable?

Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.

Why choose eToro?

With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.

What are the fees at eToro?

eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).

Who is eToro for?

eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).

Is it easy to withdraw your money from eToro?

Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.

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Is AvaTrade reliable?

AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.

Why choose AvaTrade?

AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.

What are the fees at AvaTrade?

AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.

Who is AvaTrade for?

AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.

Is it easy to withdraw money from AvaTrade?

Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.

Is AvaTrade reliable?

AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.

Why choose AvaTrade?

AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.

What are the fees at AvaTrade?

AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.

Who is AvaTrade for?

AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.

Is it easy to withdraw money from AvaTrade?

Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.

Our 7 tips for buying Compass Group stock

📊 Step📝 Specific tip for Compass Group
Analyse the marketEvaluate Compass Group’s robust organic revenue growth, recent acquisitions, and sector trends such as the expanding global demand for outsourced food services.
Choose the right trading platformSelect a UK-regulated broker offering access to the London Stock Exchange, competitive fees in GBP, and options for tax-efficient investing, such as ISAs or SIPPs.
Define your investment budgetAssess your total capital; given Compass Group’s premium P/E ratio, consider moderating your allocation and diversify across other FTSE sectors to manage risk.
Choose a strategy (short or long term)Adopt a long-term strategy to benefit from Compass Group’s strong cash generation and dividend growth, while also watching for medium-term opportunities after short-term technical corrections.
Monitor news and financial resultsKeep updated on quarterly earnings, ongoing portfolio shifts, and major acquisitions that can impact Compass Group’s growth outlook and share price.
Use risk management toolsSet stop-loss and take-profit levels near support and resistance zones (such as 2,400 GBp and 2,830 GBp), and periodically review your investment position based on market movements.
Sell at the right timeConsider selling some or all of your position if Compass Group reaches key resistance or exceeds analyst price targets, or ahead of events likely to trigger volatility.
Investment steps and specific tips for trading Compass Group shares.
Analyse the market
📝 Specific tip for Compass Group
Evaluate Compass Group’s robust organic revenue growth, recent acquisitions, and sector trends such as the expanding global demand for outsourced food services.
Choose the right trading platform
📝 Specific tip for Compass Group
Select a UK-regulated broker offering access to the London Stock Exchange, competitive fees in GBP, and options for tax-efficient investing, such as ISAs or SIPPs.
Define your investment budget
📝 Specific tip for Compass Group
Assess your total capital; given Compass Group’s premium P/E ratio, consider moderating your allocation and diversify across other FTSE sectors to manage risk.
Choose a strategy (short or long term)
📝 Specific tip for Compass Group
Adopt a long-term strategy to benefit from Compass Group’s strong cash generation and dividend growth, while also watching for medium-term opportunities after short-term technical corrections.
Monitor news and financial results
📝 Specific tip for Compass Group
Keep updated on quarterly earnings, ongoing portfolio shifts, and major acquisitions that can impact Compass Group’s growth outlook and share price.
Use risk management tools
📝 Specific tip for Compass Group
Set stop-loss and take-profit levels near support and resistance zones (such as 2,400 GBp and 2,830 GBp), and periodically review your investment position based on market movements.
Sell at the right time
📝 Specific tip for Compass Group
Consider selling some or all of your position if Compass Group reaches key resistance or exceeds analyst price targets, or ahead of events likely to trigger volatility.
Investment steps and specific tips for trading Compass Group shares.

The latest news about Compass Group

Compass Group shares gained 2.4% over the past week, outperforming the FTSE 100 index. This performance reflects positive investor sentiment following the publication of strong quarterly results and aligns with continued resilience in the UK consumer sector. The stock closed at 2,543 GBp, rebounding from recent medium-term volatility and trading above its 20-day moving average—a signal that short-term momentum may be turning positive despite shares remaining below their 50 and 100-day moving averages.

Q1 2025 results released in February confirmed over 7.5% organic revenue growth and robust underlying profit improvement. Official financial disclosures highlight Compass Group’s ability to capture new business and improve margins in its core UK and European markets. The company reported underlying operating profit growth and operating margin expansion, supported by a focused exit from non-core markets and increased investment in service innovation. These trends signal a healthy post-pandemic recovery and a resilient operating model, crucial for UK-based investors.

The company continues to strengthen its domestic leadership with strategic acquisitions, particularly the recent integration of CH&CO in the UK and Ireland. This deal, finalized in the last twelve months, enhances Compass Group’s share in the British contract catering and food service market, providing synergies, cost savings, and access to high-value clients. Such acquisitions reflect a long-term focus on the UK, reinforcing growth prospects and supporting confidence among institutional investors.

Management has reaffirmed guidance for high single-digit profit growth and organic revenue growth above 7.5% for 2025, with ongoing dividend increases. Dominic Blakemore, CEO, has stated confidence in sustaining margin progression and revenue momentum. The annual dividend was increased by 13.7% for 2024, and the projected yield stands at 1.9%, with bi-annual payouts—a positive signal for UK shareholders valuing steady returns in the current macroeconomic climate.

Market analysts maintain a consensus positive outlook with approximately 8.3% upside to the average target price and a majority of “buy” or “hold” recommendations. Twelve-month target prices cluster around 2,755 GBp, reflecting confidence in Compass Group’s operational discipline, healthy cash generation, and the appeal of its stable business model in the UK market. While the P/E ratio remains high, its low beta and strong client retention rates help to mitigate perceived risk, supporting the attractiveness of the stock for long-term local investors.

FAQ

What is the latest dividend for Compass Group stock?

Compass Group currently pays a dividend. The latest annual dividend was 59.8 cents per share, reflecting an increase of 13.7% year-on-year. Dividends are paid twice yearly, with the final dividend usually disbursed in February and the interim in July. The current yield stands at 1.90%. Notably, Compass Group has a track record of consistent dividend growth, supported by strong cash generation and resilient performance.

What is the forecast for Compass Group stock in 2025, 2026, and 2027?

Based on the latest share price of 2,543.00 GBp, the projections are: 3,305.90 GBp for end of 2025, 3,814.50 GBp for end of 2026, and 5,086.00 GBp for end of 2027. These projections reflect optimism about Compass Group’s core strength, recent strategic acquisitions, and ongoing growth in the global food service sector, along with continued organic revenue expansion.

Should I sell my Compass Group shares?

Given Compass Group’s strong operational results, steady dividend growth, and resilient market position, holding onto shares may be beneficial for long-term investors. The company’s disciplined portfolio management and strategy targeting core markets support continued growth potential. The current valuation is at a premium, but Compass Group’s history of solid performance and positive outlook make it a candidate for patient investors with a medium- to long-term horizon.

Are Compass Group shares eligible for an ISA, and how are dividends and capital gains taxed in the UK?

Yes, Compass Group shares are eligible for inclusion in a Stocks and Shares ISA or a SIPP, making them attractive for UK retail investors seeking tax efficiency. Dividends received within an ISA are tax-free, and any capital gains made on shares held in the account are also exempt from UK capital gains tax. Outside such wrappers, dividends above the annual allowance are taxed, but there is no withholding tax for UK residents.

What is the latest dividend for Compass Group stock?

Compass Group currently pays a dividend. The latest annual dividend was 59.8 cents per share, reflecting an increase of 13.7% year-on-year. Dividends are paid twice yearly, with the final dividend usually disbursed in February and the interim in July. The current yield stands at 1.90%. Notably, Compass Group has a track record of consistent dividend growth, supported by strong cash generation and resilient performance.

What is the forecast for Compass Group stock in 2025, 2026, and 2027?

Based on the latest share price of 2,543.00 GBp, the projections are: 3,305.90 GBp for end of 2025, 3,814.50 GBp for end of 2026, and 5,086.00 GBp for end of 2027. These projections reflect optimism about Compass Group’s core strength, recent strategic acquisitions, and ongoing growth in the global food service sector, along with continued organic revenue expansion.

Should I sell my Compass Group shares?

Given Compass Group’s strong operational results, steady dividend growth, and resilient market position, holding onto shares may be beneficial for long-term investors. The company’s disciplined portfolio management and strategy targeting core markets support continued growth potential. The current valuation is at a premium, but Compass Group’s history of solid performance and positive outlook make it a candidate for patient investors with a medium- to long-term horizon.

Are Compass Group shares eligible for an ISA, and how are dividends and capital gains taxed in the UK?

Yes, Compass Group shares are eligible for inclusion in a Stocks and Shares ISA or a SIPP, making them attractive for UK retail investors seeking tax efficiency. Dividends received within an ISA are tax-free, and any capital gains made on shares held in the account are also exempt from UK capital gains tax. Outside such wrappers, dividends above the annual allowance are taxed, but there is no withholding tax for UK residents.

Pauline Laurore
P. Laurore
Finance expert
HelloSafe
Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.

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