The week’s best buys

Compass Group Shares

The catering giant runs more than 50,000 canteens and cafeterias in 50 countries, employing some 500,000 staff. It also provides cleaning and building maintenance services. A solid track record justifies the premium. Buy. £16.59.

John Menzies Investors Chronicle

Menzies’s earnings are set to grow as it reduces exposure to its traditional distribution business. The acquisition of aircraft services provider Asig promises global expansion and cross-selling opportunities. Yields 3.1%. Buy. 723p. The wine and spirits retailer’s turnaround is on track, boosted by soaring gin sales. Revenues are up, thanks to increased sales at both Naked Wines (up 26%) and Lay & Wheeler. Expanding internationally. Buy. 349.25p.

Royal Bank of Scotland The Daily Telegraph

A “pariah stock”, this bailed-out lender is still 73% state-owned. But the industry is now highly regulated, and RBS is “very conservatively” run, with a growing loan book and a stronger balance sheet. Buy. 252.2p.

Ted Baker Investors Chronicle

High-street fashion chain Ted Baker is seeing revenues grow in its retail and wholesale sides, with margins in line with expectations. Online sales are storming ahead as it expands globally. Worth the premium. Buy. £24.77.

The People’s Operator The Mail on Sunday

TPO is a mobile phone provider which piggybacks on Three’s network. Beset with early problems, this is a punt on recovery: US revenue has grown 25.6%, and shares have yet to rise to reflect the improving outlook. Buy. 5.5p.