Aramark (NYSE:ARMK) Stock

Aramark

Aramark provides food, facilities, and uniform services to a variety of clients and institutions. The majority of company revenue comes from its North American food and support services segment. Smaller but substantial segments include food and support services international, food and support services united states and uniform and career apparel. The food and support services segments provide food for school districts; colleges; healthcare facilities; correctional institutions; and business, sports, and entertainment venues. The uniform segment rents, delivers, cleans, and maintains work clothes and ancillary items like towels and mats to customers in North America and Japan. The company has hundreds of service locations and distribution centers across the United States and Canada.

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U.S. stocks advanced midday Tuesday, demonstrating resilience despite escalating geopolitical tensions and trade uncertainties between the world’s two largest economies.

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Aramark beats Q1 earnings but misses revenue estimates; expects revenue growth to accelerate in H2 with a strong FY25 outlook.

Aramark Beats Q1 Earnings, Company Expects Revenue Growth To Pick Up

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Aramark's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARMK#NYSE">ARMK</a>) short percent of float has fallen 23.92% since its last report. The company recently reported that it has 4.20 million shares sold short, which is 1.59% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.56 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Aramark Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1739804428_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Aramark has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Aramark's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Aramark's peer group average for short interest as a percentage of float is 9.23%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Trading Ideas

Looking Into Aramark's Recent Short Interest

Aramark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARMK#NYSE">ARMK</a>) has been analyzed by 8 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">2</td>
<td align="right">2</td>
<td align="right">4</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">2</td>
<td align="right">1</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Analysts have set 12-month price targets for Aramark, revealing an average target of $44.38, a high estimate of $47.00, and a low estimate of $40.00. Surpassing the previous average price target of $41.62, the current average has increased by 6.63%.
<img src="https://www.benzinga.com/files/images/story/2025/1738875656_0.png" alt="price target chart" />
<h2>Deciphering Analyst Ratings: An In-Depth Analysis</h2>
The standing of Aramark among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Karl Green</td>
<td>RBC Capital</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$47.00</td>
<td>$47.00</td>
</tr>
<tr>
<td>Toni Kaplan</td>
<td>Morgan Stanley</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$43.00</td>
<td>$40.00</td>
</tr>
<tr>
<td>Andrew Wittmann</td>
<td>Baird</td>
<td>Raises</td>
<td>Neutral</td>
<td>$45.00</td>
<td>$44.00</td>
</tr>
<tr>
<td>Shlomo Rosenbaum</td>
<td>Stifel</td>
<td>Raises</td>
<td>Buy</td>
<td>$45.00</td>
<td>$43.00</td>
</tr>
<tr>
<td>Jasper Bibb</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$46.00</td>
<td>$42.00</td>
</tr>
<tr>
<td>Andrew Steinerman</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$45.00</td>
<td>$41.00</td>
</tr>
<tr>
<td>Toni Kaplan</td>
<td>Morgan Stanley</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$40.00</td>
<td>$38.00</td>
</tr>
<tr>
<td>Andrew Wittmann</td>
<td>Baird</td>
<td>Raises</td>
<td>Neutral</td>
<td>$44.00</td>
<td>$38.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Aramark. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Aramark compared to the broader market.</li>
<li>Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Aramark's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Capture valuable insights into Aramark's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/ARMK/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Aramark analyst ratings.</a>
<h2>Get to Know Aramark Better</h2>
Aramark provides food, facilities, and uniform services to a variety of clients and institutions. The majority of company revenue comes from its North American food and support services segment. Smaller but substantial segments include food and support services international, food and support services united states and uniform and career apparel. The food and support services segments provide food for school districts; colleges; healthcare facilities; correctional institutions; and business, sports, and entertainment venues. The uniform segment rents, delivers, cleans, and maintains work clothes and ancillary items like towels and mats to customers in North America and Japan. The company has hundreds of service locations and distribution centers across the United States and Canada.
<h3>Financial Milestones: Aramark's Journey</h3>
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Growth: Over the 3 months period, Aramark showcased positive performance, achieving a revenue growth rate of 5.16% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Aramark's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 2.77%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Aramark's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 4.09%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Aramark's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.97%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 1.83, Aramark adopts a prudent financial strategy, indicating a balanced approach to debt management.
<h2>How Are Analyst Ratings Determined?</h2>
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
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Analyst Ratings

What 8 Analyst Ratings Have To Say About Aramark

RBC Capital analyst Karl Green reiterates Aramark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARMK#NYSE">ARMK</a>) with a Outperform and maintains $47 price target.

Price Target

Reiteration

RBC Capital Reiterates Outperform on Aramark, Maintains $47 Price Target

U.S. stocks advanced midday Tuesday, demonstrating resilience despite escalating geopolitical tensions and trade uncertainties between the <a href="https://www.benzinga.com/news/econ-s">world&#8217;s two largest economies.</a>
China responded to President Donald Trump&#8216;s 10% import tariff with targeted countermeasures, including restrictions on key mineral exports to the U.S. and tariffs on American energy products.
Beijing is raising tariffs by 10%-15% on select U.S. imports, including coal, liquefied natural gas, crude oil, agricultural machinery and vehicles. Additionally, China added PVH Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PVH#NYSE">PVH</a>) and Illumina Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ILMN#NASDAQ">ILMN</a>) to its &#8220;Unreliable Entity List,&#8221; citing the need to &#8220;safeguard national sovereignty, security, and development interests,&#8221; and opened an antitrust investigation on Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>).
Market participants had anticipated a call between Trump and Chinese President Xi Jinping on Tuesday, but media reports indicated the conversation would not happen today.
The trade developments had an immediate impact on oil markets, with West Texas Intermediate crude futures plunging 3% overnight to as low as $70 per barrel. 
Yet, prices rebounded sharply Tuesday morning following reports that Trump is considering issuing a memorandum aimed at inflicting <a href="https://www.benzinga.com/economics/macro-economic-events/25/02/43469234/trump-prepares-maximum-pressure-on-iran-oil-jumps-above-73-energy-stocks-rally">maximum economic damage on Iran</a>, potentially leading to a sharp decline in Iranian oil production.
Energy stocks outperformed on the day, while utilities lagged. 
Among individual stocks, Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) rocketed 22% after posting strong earnings and a revenue beat. 
In the commodities market, gold added more than 1%, extending its all-time high, and silver jumped 2.2%. Meanwhile, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) declined 2% to $99,000.
<h1 class="wp-block-heading">Tuesday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day % chg</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,281.54</td>
<td>1.0%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>21,495.31</td>
<td>0.9%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>6,029.97</td>
<td>0.6%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>44,501.00</td>
<td>0.2%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:55 p.m. ET</figcaption></figure>
According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020325&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>&nbsp;data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;rose 0.5% to $600.53.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) inched 0.1% higher to $444.77.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)&nbsp;rose 0.9% to $522.81.</li>
<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rallied 1.1% to $226.80.</li>
<li>The&nbsp;Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) outperformed, up 1.9%; the&nbsp;Utilities Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) lagged, down 0.8%.</li>
</ul>
<h1 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h1>
Stocks reacting to earnings report included: 
<ul>
<li>Pfizer Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>): down 1.53%</li>
<li>PepsiCo Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>): down 4.43%</li>
<li>Merck &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRK#NYSE">MRK</a>): down 10.49%</li>
<li>PayPal Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>): down 11.57%</li>
<li>Archer-Daniels-Midland Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ADM#NYSE">ADM</a>): down 3.58%</li>
<li>KKR &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KKR#NYSE">KKR</a>): down 7.90%</li>
<li>Cummins Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMI#NYSE">CMI</a>): up 3.81%</li>
<li>Enterprise Products Partners L.P. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EPD#NYSE">EPD</a>): down 0.99%</li>
<li>Marathon Petroleum Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPC#NYSE">MPC</a>): up 5.85%</li>
<li>Estee Lauder Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EL#NYSE">EL</a>): down 16.35%</li>
<li>Apollo Global Management Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APO#NYSE">APO</a>): down 2.78%</li>
<li>Fox Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FOXA#NASDAQ">FOXA</a>): up 4.00%</li>
<li>Ametek Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AME#NYSE">AME</a>): down 1.00%</li>
<li>Xylem Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XYL#NYSE">XYL</a>): up 5.85%</li>
<li>Ferrari NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RACE#NYSE">RACE</a>): up 7.62%</li>
<li>Spotify Technology SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>): up 10.46%</li>
<li>Regeneron Pharmaceuticals Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/REGN#NASDAQ">REGN</a>): up 4.71%</li>
<li>Jacobs Solutions Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/J#NYSE">J</a>): down 2.72%</li>
<li>Aramark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARMK#NYSE">ARMK</a>): down 1.51%</li>
<li>Gartner Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IT#NYSE">IT</a>): up 0.77%</li>
<li>Centene Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNC#NYSE">CNC</a>): down 3.41%</li>
<li>Atkore Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ATKR#NYSE">ATKR</a>): down 20.50%</li>
<li>Berry Global Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BERY#NYSE">BERY</a>): up 4.15%</li>
<li>WEC Energy Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WEC#NYSE">WEC</a>): down 1.52%</li>
<li>Hubbell Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUBB#NYSE">HUBB</a>): down 0.55%</li>
<li>TransDigm Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDG#NYSE">TDG</a>): down 1.60%</li>
<li>Graphic Packaging Holding Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GPK#NYSE">GPK</a>): down 1.76%</li>
<li>CNH Industrial NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNHI#NYSE">CNHI</a>): up 1.71%</li>
<li>Ingredion Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INGR#NYSE">INGR</a>): down 6.12%</li>
<li>ATI Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ATI#NYSE">ATI</a>): up 7.02%</li>
<li>Ball Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BALL#NYSE">BALL</a>): down 8.03%</li>
<li>Lancaster Colony Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LANC#NASDAQ">LANC</a>): up 9.27%</li>
<li>Premier Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PINC#NASDAQ">PINC</a>): down 15.36%</li>
<li>MPLX LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPLX#NYSE">MPLX</a>): up 2.92%</li>
<li>Oaktree Specialty Lending Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OCSL#NASDAQ">OCSL</a>): down 3.42%</li>
<li>PJT Partners Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PJT#NYSE">PJT</a>): up 12.77%</li>
<li>Energizer Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ENR#NYSE">ENR</a>): down 4.45%</li>
<li>Silicon Laboratories Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SLAB#NASDAQ">SLAB</a>): down 1.05%</li>
<li>Hamilton Lane Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HLNE#NASDAQ">HLNE</a>): down 0.01%</li>
<li>Madison Square Garden Sports Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSGS#NYSE">MSGS</a>): down 3.74%</li>
<li>Pentair Plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PNR#NYSE">PNR</a>): down 1.89%</li>
<li>Amcor Plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMCR#NYSE">AMCR</a>): up 3.87%</li>
<li>Inmode Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INMD#NASDAQ">INMD</a>): up 2.82%</li>
<li>Willis Towers Watson Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WTW#NASDAQ">WTW</a>): down 3.54%</li>
<li>Axalta Coating Systems Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXTA#NYSE">AXTA</a>): up 7.86%</li>
<li>Mesa Laboratories Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MLAB#NASDAQ">MLAB</a>): up 10.48%</li>
</ul>
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Photo: Marek Masik via Shutterstock

US Stocks Rise Despite China's Trade Fears, Palantir Defies Gravity, Gold Rallies Further: What's Driving Markets Tuesday?

Aramark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARMK#NYSE">ARMK</a>) shares are <a target="_blank" href="https://www.benzinga.com/pressreleases/25/02/b43457429/aramark-reports-first-quarter-earnings" rel="noreferrer noopener">trading lower on Tuesday.</a>
The company reported first-quarter adjusted earnings per share 51 cents, beating the street view of 48 cents. Quarterly sales of $4.55 billion (+3%) missed the analyst consensus estimate of $4.62 billion.
Revenue growth outweighed the loss of lower-margin accounts in the FSS U.S. segment.
Food service revenue rose 5%, with a 6% increase in organic revenue due to strong business and new contracts. Currency translation reduced revenue by $62 million.
Operating income grew 30% year-over-year to $217 million, while AOI increased 13% to $258 million. Profitability improved due to higher revenue, supply chain efficiencies and cost management.
Currency translation reduced operating income by $3 million.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/global/25/02/43465657/trumps-tariff-push-divides-executives-negative-outcomes-are-not-priced-into-markets" rel="noreferrer noopener">Trump&#8217;s Tariff Push Divides Executives: &#8216;Negative Outcomes Are Not Priced Into&#8217; Markets</a>
Aramark saw stronger cash flow, with net cash used in operating activities improving by $70 million and free cash flow up by $63 million, driven by higher net income and favorable working capital.
The company ended the quarter with over $1.7 billion in cash availability.
Dividend: The company approved a quarterly dividend of 10.5 cents per share of common stock, as announced on January 27. The dividend will be payable on Feb. 24.
Outlook: Aramark expects revenue growth to pick up, especially in the second half of the year with double-digit growth.
The company forecasts FY25 organic revenue growth of 7.5% to 9.5% and adjusted EPS growth of 23% to 28%.
&#8220;Our new business pipeline is significant, and we are already having success this fiscal year in both new account wins and client retention,&#8221; said Aramark CEO John Zillmer.
&#8220;We have the strategy, sales pipeline, and talent in place around the globe to capitalize on the many value-creating opportunities ahead. I firmly believe the best is yet to come.&#8221;
ARMK Price Action: Aramark shares are trading lower by 2.55% to $37.47 at publication Tuesday.
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</ul>
Photo: Courtesy Aramark

Aramark shares are trading higher after the company reported better-than-expected Q1 adjusted EPS results.

Aramark Continues To Anticipate FY25 Organic Revenue Growth Of 7.5% - 9.5%, Adjusted EPS Growth Of 23% - 28%

The Company's new business pipeline across the organization remains significant, including in first-time outsourcing. Aramark is confident in its ability to achieve Net New of 4% to 5% of prior year revenue—with retention levels above 95%—in fiscal 2025 and beyond.&nbsp;

Aramark Continues To Expect Revenue Growth To Accelerate, Particularly In H2 Of The Year, Resuming Double-digit Top-line Growth; Reaffirms Performance Expectations For FY25

Aramark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARMK#NYSE">ARMK</a>) reported quarterly earnings of $0.51 per share which beat the analyst consensus estimate of $0.48 by 6.25 percent. This is a 24.39 percent increase over earnings of $0.41 per share from the same period last year. The company reported quarterly sales of $4.55 billion which missed the analyst consensus estimate of $4.62 billion by 1.41 percent. This is a 3.27 percent increase over sales of $4.41 billion the same period last year.

Earnings Beats

Earnings Misses

Aramark Q1 2025 Adj EPS $0.51 Beats $0.48 Estimate, Sales $4.55B Miss $4.62B Estimate

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Earnings Scheduled For February 4, 2025

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Shares of companies within the broader consumer discretionary sector are trading higher following softer-than-expected December inflation data.

Morgan Stanley analyst Toni Kaplan maintains Aramark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARMK#NYSE">ARMK</a>) with a Equal-Weight and raises the price target from $40 to $43.

Morgan Stanley Maintains Equal-Weight on Aramark, Raises Price Target to $43

Throughout the last three months, 9 analysts have evaluated Aramark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARMK#NYSE">ARMK</a>), offering a diverse set of opinions from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">4</td>
<td align="right">2</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">2</td>
<td align="right">1</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $43.61, along with a high estimate of $46.00 and a low estimate of $40.00. Marking an increase of 9.02%, the current average surpasses the previous average price target of $40.00. 
<img src="https://www.benzinga.com/files/images/story/2024/1734019255_0.png" alt="price target chart" />
<h2>Investigating Analyst Ratings: An Elaborate Study</h2>
The analysis of recent analyst actions sheds light on the perception of Aramark by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Andrew Wittmann</td>
<td>Baird</td>
<td>Raises</td>
<td>Neutral</td>
<td>$45.00</td>
<td>$44.00</td>
</tr>
<tr>
<td>Shlomo Rosenbaum</td>
<td>Stifel</td>
<td>Raises</td>
<td>Buy</td>
<td>$45.00</td>
<td>$43.00</td>
</tr>
<tr>
<td>Jasper Bibb</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$46.00</td>
<td>$42.00</td>
</tr>
<tr>
<td>Andrew Steinerman</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$45.00</td>
<td>$41.00</td>
</tr>
<tr>
<td>Toni Kaplan</td>
<td>Morgan Stanley</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$40.00</td>
<td>$38.00</td>
</tr>
<tr>
<td>Andrew Wittmann</td>
<td>Baird</td>
<td>Raises</td>
<td>Neutral</td>
<td>$44.00</td>
<td>$38.00</td>
</tr>
<tr>
<td>Lizzie Dove</td>
<td>Goldman Sachs</td>
<td>Raises</td>
<td>Buy</td>
<td>$41.00</td>
<td>$38.00</td>
</tr>
<tr>
<td>Joshua Chan</td>
<td>UBS</td>
<td>Raises</td>
<td>Buy</td>
<td>$44.00</td>
<td>$40.00</td>
</tr>
<tr>
<td>Karl Green</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$42.50</td>
<td>$36.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Aramark. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Aramark compared to the broader market.</li>
<li>Price Targets: Understanding forecasts, analysts offer estimates for Aramark's future value. Examining the current and prior targets provides insight into analysts' changing expectations.</li>
</ul>
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Aramark's market standing. Stay informed and make well-considered decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/ARMK/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Aramark analyst ratings.</a>
<h2>Discovering Aramark: A Closer Look</h2>
Aramark provides food, facilities, and uniform services to a variety of clients and institutions. The majority of company revenue comes from its North American food and support services segment. Smaller but substantial segments include food and support services international, food and support services united states and uniform and career apparel. The food and support services segments provide food for school districts; colleges; healthcare facilities; correctional institutions; and business, sports, and entertainment venues. The uniform segment rents, delivers, cleans, and maintains work clothes and ancillary items like towels and mats to customers in North America and Japan. The company has hundreds of service locations and distribution centers across the United States and Canada.
<h3>Financial Milestones: Aramark's Journey</h3>
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Positive Revenue Trend: Examining Aramark's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.16% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 2.77%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Aramark's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 4.09%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.97%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Aramark's debt-to-equity ratio is below the industry average. With a ratio of 1.83, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
<h2>How Are Analyst Ratings Determined?</h2>
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Peeling Back The Layers: Exploring Aramark Through Analyst Insights

Baird analyst Andrew Wittmann maintains Aramark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARMK#NYSE">ARMK</a>) with a Neutral and raises the price target from $44 to $45.

Baird Maintains Neutral on Aramark, Raises Price Target to $45

In the current session, the stock is trading at $42.00, after a 0.94% spike. Over the past month, Aramark Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARMK#NYSE">ARMK</a>) stock increased by 5.18%, and in the past year, by 48.83%. With performance like this, long-term shareholders are optimistic but others are more likely to look into the price-to-earnings ratio to see if the stock might be overvalued.

<img src="https://www.benzinga.com/files/images/story/2024/1733768111_0.png" alt="Past Year Chart" />

<h3>Comparing Aramark P/E Against Its Peers</h3>
The P/E ratio measures the current share price to the company's EPS. It is used by long-term investors to analyze the company's current performance against it's past earnings, historical data and aggregate market data for the industry or the indices, such as S&amp;P 500. A higher P/E indicates that investors expect the company to perform better in the future, and the stock is probably overvalued, but not necessarily. It also could indicate that investors are willing to pay a higher share price currently, because they expect the company to perform better in the upcoming quarters. This leads investors to also remain optimistic about rising dividends in the future. 
Aramark has a lower P/E than the aggregate P/E of 91.15 of the Hotels, Restaurants &amp; Leisure industry. Ideally, one might believe that the stock might perform worse than its peers, but it's also probable that the stock is undervalued. 

<img src="https://www.benzinga.com/files/images/story/2024/1733768111_1.png" alt="Guage" />

In summary, while the price-to-earnings ratio is a valuable tool for investors to evaluate a company's market performance, it should be used with caution. A low P/E ratio can be an indication of undervaluation, but it can also suggest weak growth prospects or financial instability. Moreover, the P/E ratio is just one of many metrics that investors should consider when making investment decisions, and it should be evaluated alongside other financial ratios, industry trends, and qualitative factors. By taking a comprehensive approach to analyzing a company's financial health, investors can make well-informed decisions that are more likely to lead to successful outcomes.

Intraday Update

Price Over Earnings Overview: Aramark

A large exercise of company stock options by James Tarangelo, SVP and CFO at Aramark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARMK#NYSE">ARMK</a>) was disclosed in a new SEC filing on November 21, as part of an insider exercise.
What Happened: Tarangelo, SVP and CFO at Aramark, exercised stock options for 8,365 shares of ARMK stock. This information was disclosed in a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0001584509/000158450924000226//Archives/edgar/data/1584509/000158450924000226/0001584509-24-000226-index.htm">U.S. Securities and Exchange Commission</a> on Thursday. The exercise price of the options was $20.67 per share.
As of Friday morning, Aramark shares are down by 4.85%, with a current price of $38.46. This implies that Tarangelo's 8,365 shares have a value of $148,813.
<h3>Discovering Aramark: A Closer Look</h3>
Aramark provides food, facilities, and uniform services to a variety of clients and institutions. The majority of company revenue comes from its North American food and support services segment. Smaller but substantial segments include food and support services international, food and support services united states and uniform and career apparel. The food and support services segments provide food for school districts; colleges; healthcare facilities; correctional institutions; and business, sports, and entertainment venues. The uniform segment rents, delivers, cleans, and maintains work clothes and ancillary items like towels and mats to customers in North America and Japan. The company has hundreds of service locations and distribution centers across the United States and Canada.
<h3>A Deep Dive into Aramark's Financials</h3>
Positive Revenue Trend: Examining Aramark's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.16% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Exploring Profitability:
<ul>
<li>
Gross Margin: The company faces challenges with a low gross margin of 8.99%, suggesting potential difficulties in cost control and profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): With an EPS below industry norms, Aramark exhibits below-average bottom-line performance with a current EPS of 0.46.
</li>
</ul>
Debt Management: Aramark's debt-to-equity ratio is below the industry average. With a ratio of 1.83, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Valuation Overview:
<ul>
<li>
Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 40.83 is lower than the industry average, indicating potential undervaluation for the stock.
</li>
<li>
Price to Sales (P/S) Ratio: The current P/S ratio of 0.62 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): The company's EV/EBITDA ratio of 13.05 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
</li>
</ul>
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
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<h3>Why Insider Activity Matters in Finance</h3>
Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
<h3>A Closer Look at Important Transaction Codes</h3>
Examining transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001584509">Check Out The Full List Of Aramark's Insider Trades.</a>
Insider Buying Alert: Profit from C-Suite Moves
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

Options Movement At Aramark: James Tarangelo Exercises Worth $148K

Stifel analyst Shlomo Rosenbaum maintains Aramark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARMK#NYSE">ARMK</a>) with a Buy and raises the price target from $43 to $45.

Stifel Maintains Buy on Aramark, Raises Price Target to $45

Truist Securities analyst Jasper Bibb maintains Aramark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARMK#NYSE">ARMK</a>) with a Buy and raises the price target from $42 to $46.

Truist Securities Maintains Buy on Aramark, Raises Price Target to $46

Aramark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARMK#NYSE">ARMK</a>) Monday reported upbeat earnings for <a href="https://www.benzinga.com/news/earnings/24/11/41886688/crude-oil-down-3-aramark-posts-upbeat-earnings">its fiscal fourth quarter</a>.
The Philadelphia-based company announced a "material" share repurchase in fiscal 2025, for the first time in nearly eight years, according to Truist Securities.
<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/65522755a54dc20001b245f7/jasper-bibb">Analyst Jasper Bibb</a> maintained a Buy rating on Aramark, while raising the price target from $42 to $46.
Aramark Thesis: The company&#8217;s total revenues grew by 5% year-on-year to $4.417 billion, missing the consensus of $4.455 billion possibly due to incremental forex headwinds, Bibb said in the note.  
Check out <a href="https://www.benzinga.com/analyst-stock-ratings">other analyst stock ratings</a>.
"Margin drivers included operating leverage, cost discipline and supply chain efficiencies," and the company reported adjusted earnings of 54 cents per share, ahead of consensus of 52 cents per shares, he added.
Aramark guided to organic growth of around 7.5%-9.5% in constant currency terms, implying full-year revenues in the range of $18.61 billion to $18.96 billion, versus consensus of $18.53 billion, net of a forex headwind of $95 million, the analyst stated.
While management announced the authorization of a share buyback program of $500 million, the earnings guidance "does not include any impact from potential share repurchase activity," Bibb further wrote.
Price Action: Shares of Aramark had declined by 0.62% to $38.44 in premarket trading on Tuesday.
Read More: 
<ul>
<li><a href="https://www.benzinga.com/news/buybacks/24/11/41876916/food-company-aramark-posts-mixed-q4-increases-dividend-by-11-more">Food Company Aramark Posts Mixed Q4, Increases Dividend By 11% &amp; More</a></li>
</ul>
Image: Shutterstock

Analyst Color

Long Ideas

Why This Aramark Analyst Is Raising Forecasts After Mixed Q4 Results

JP Morgan analyst Andrew Steinerman maintains Aramark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARMK#NYSE">ARMK</a>) with a Overweight and raises the price target from $41 to $45.

JP Morgan Maintains Overweight on Aramark, Raises Price Target to $45

Press Releases

Aramark to Participate in Upcoming Redburn Atlantic CEO Conference

Avendra International Acquires Spanish-Based Quantum

Aramark to Host Conference Call on First Quarter Fiscal 2025 Results

Aramark Canada Pledges 25% Cut in Food-Related Emissions by 2030 and Introduces "Coolfood Meals" Nationwide

Ancora Nominates Majority Slate of Director Candidates and Proposes Industry Legend Alan Kestenbaum as New CEO to Turn Around U.S. Steel

Aramark Declares Quarterly Dividend

Aramark Reports First Quarter Earnings

Aramark Sports + Entertainment Named Food and Beverage Provider for Nebraska Athletics Venues

Aramark Announces Successful Closing of Debt Refinancing

Aramark Facilities Management Recognized for Innovation at District Administration's Ed Tech Future of Education Conference

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