Edenred shares rose 6.4% on Tuesday, 10 November, finishing as the best performer on Europe's STOXX 600 index after a Brazilian judge suspended parts of new rules governing meal and food vouchers. The French payments group closed at 25.89 euros in Paris, up from 24.34 euros at the previous close.

The ruling, granted on 9 November by Judge Frederico Botelho de Barros Viana of the Federal Court in the Federal District, temporarily halts provisions of a decree that began to take effect on 7 November. It applies to companies in the ABBT trade group, including Pluxee and Edenred's Ticket brand, and restores the previous rules of Brazil's worker food programme until a final judgment is reached.

What the court suspended

The injunction suspends a 3.6% cap on the merchant discount rates charged to restaurants and supermarkets, as well as a 2% ceiling on interchange fees. The suspended measures were part of a new regulatory framework for food and meal vouchers that had been due to reshape how the sector operates in Brazil, one of Edenred's largest markets.

The decision covers the leading operators in the market, including Alelo, Pluxee, Ticket, VR and ValeShop. The interoperability obligation for voucher cards remains in force across the country. The injunction is provisional, and the federal government has been ordered to present its defence, so the legal dispute is set to continue.

Why investors welcomed the ruling

Merchant commission caps have been a drag on Edenred's voucher business. The company faces a 5% cap on meal voucher fees in Italy from September 2025 and the 3.6% cap in Brazil from late February 2026, both of which pressure revenue from its core benefits arm. Removing the Brazilian cap, even temporarily, eases that pressure and protects margins on transactions processed through its Ticket cards.

Edenred's wider business has been growing. The group reported organic revenue growth of 10.7% in its Mobility division in the third quarter, to 202 million euros, helped by double-digit growth in services such as fleet, tolls and electric vehicle charging.

Wider European market steadies

The wider European market also ended higher on Tuesday. The STOXX 600 index closed 0.27% higher at 658.32 points, within 0.8% of its record high last reached in early August, with banks up 1.7% to lead the gains. Spain's lender-heavy benchmark outperformed, adding 0.98%.

Stocks had risen more strongly earlier in the session as falling oil prices and easing fears of further military action against Iran supported risk appetite, before paring gains after hotter-than-expected US inflation data raised expectations of a Federal Reserve rate rise in December.