Examining the Future: Aramark's Earnings Outlook

Aramark ARMK is set to give its latest quarterly earnings report on Monday, 2024-11-11. Here's what investors need to know before the announcement.

Analysts estimate that Aramark will report an earnings per share (EPS) of $0.54.

Investors in Aramark are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings Track Record

During the last quarter, the company reported an EPS beat by $0.01, leading to a 1.32% increase in the share price on the subsequent day.

Here's a look at Aramark's past performance and the resulting price change:

Stock Performance

Shares of Aramark were trading at $38.97 as of November 07. Over the last 52-week period, shares are up 36.64%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Observations about Aramark

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Aramark.

The consensus rating for Aramark is Buy, derived from 6 analyst ratings. An average one-year price target of $41.42 implies a potential 6.29% upside.

Comparing Ratings with Peers

The analysis below examines the analyst ratings and average 1-year price targets of Texas Roadhouse, Shake Shack and Dutch Bros, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Texas Roadhouse received a Buy consensus from analysts, with an average 1-year price target of $198.44, implying a potential 409.21% upside.
• The consensus outlook from analysts is an Neutral trajectory for Shake Shack, with an average 1-year price target of $121.8, indicating a potential 212.55% upside.
• For Dutch Bros, analysts project an Buy trajectory, with an average 1-year price target of $45.89, indicating a potential 17.76% upside.

Snapshot: Peer Analysis

In the peer analysis summary, key metrics for Texas Roadhouse, Shake Shack and Dutch Bros are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Aramark ranks highest in revenue growth among its peers. It also leads in gross profit margin. However, it has the lowest return on equity compared to its peers.

Get to Know Aramark Better

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.

Aramark's Financial Performance

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: Aramark displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 7.97%. This indicates a notable 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 1.33%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Aramark's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.99%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Aramark's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.46%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Aramark's debt-to-equity ratio is below the industry average. With a ratio of 2.13, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Aramark visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.