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The FTSE 100 has a reputation for being steady, rather than spectacular, when it comes to investment returns. But Compass Group (LSE:CPG) might be an interesting exception.
Including the dividend, the stock has returned over 10% per year on average during what has been an unusually challenging last 10 years. I think it’s worth investors taking a closer look.
Contract catering
Compass Group provides catering services to places like hospitals, sports stadiums, and schools. In other words – places that would rather not be running their own food operations.
One obvious benefit to this type of business is that it’s not especially cyclical. Whatever’s going on with inflation or interest rates, people still need to eat.
While there’s competition in this industry, Compass also has an important advantage over other operators. Specifically, its scale puts it in a better…
