PARIS (dpa-AFX) - French food services and facilities management company Sodexo S.A. (SDXAY) on Thursday unveiled its Shift & Grow 2030 strategy at an investor update in Paris, outlining plans to accelerate growth, restore competitiveness and improve profitability, while setting new medium-term financial targets through the end of the decade.
'Shift & Grow 2030 is about reconnecting with the values and operating principles that have always defined Sodexo: client proximity, operational discipline, accountability and an entrepreneurial mindset. By executing them consistently, we will restore our competitiveness and unlock the full potential of the company,' said hierry Delaporte, Sodexo Chief Executive Officer.
The company said the strategy is designed to address execution gaps that have weighed on recent performance and position Sodexo for sustainable long-term growth.
The plan will be rolled out in two phases, with fiscal 2026-2027 focused on restoring competitiveness and fiscal 2028 onward focused on accelerating growth and expanding margins.
For fiscal 2027, Sodexo expects organic revenue growth of 2% to 3% and an underlying operating margin of between 3.2% and 3.4%.
Looking further ahead, the company targets organic revenue growth of more than 5% and an underlying operating margin above 5% by fiscal 2030. The revenue target includes net new business growth of more than 3%.
Under the plan, North America will be Sodexo's primary growth market, supported by a client-focused approach and increased investment in commercial capabilities, technology, data and artificial intelligence.
To support the transformation, Sodexo plans around €100 million in incremental annualized operating costs and approximately €1 billion of non-recurring investments in technology, procurement and organizational transformation between fiscal 2026 and fiscal 2030.
The company said it will maintain a disciplined capital allocation framework, including capital expenditures of around 2.5% to 3.0% of revenue, a dividend payout ratio of 50%, targeted bolt-on acquisitions and an investment-grade financial policy.
Sodexo cited its recent selection by Meta as an early sign of progress under the plan. The contract covers food services at more than 130 locations across over 30 countries and is expected to be rolled out in the coming months.
Sodexo shares closed up 2.47% at $12.04 on Wednesday on the OTC market.
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