Sodexo SA's shares plummeted drastically, marking the largest drop in nearly seven years after the French food services company revised its revenue forecast downwards due to a deceleration in growth at its US university division. The stock tumbled by up to 16% in Paris, the sharpest intraday decline since March 2018. Competing catering firms like London-listed Compass Group Plc also experienced declines, with a drop of up to 4.1%.

CEO Sophie Bellon explained during a media conference call that Sodexo's US university segment was adversely impacted by a decrease in the number of first-year students in the Northeast region. She mentioned the recent appointment of a new manager for the business. Bellon also noted delays in the commencement of certain contracts in the company's healthcare sector in North America.

Established outside Paris and founded by Bellon's father, Pierre, in 1966, Sodexo offers catering, facilities management, and various services at educational institutions, hospitals, and government entities globally. The company adjusted its projected organic revenue growth for the fiscal year ending in August to be between 3% and 4%, down from the initial forecast of 5.5% to 6.5%. Additionally, Sodexo revised its expectations regarding an increase in a key profitability metric. The industry as a whole reacted to the slowdown, reflecting broader implications.