Aramark’s Upcoming Q1 Results Preview

Aramark (NYSE:ARMK) is a global leader in food, facilities, and uniform services. The company provides services to various sectors, including education, healthcare, and business. Aramark's competitors include companies like Compass Group and Sodexo. Recently, John J. Zillmer, the CEO of Aramark, purchased 6,387 shares of the company's common stock at $39.07 per share, increasing his total ownership to 831,825 shares.

Aramark's recent partnership with the Okaloosa County School District in Florida is a significant step in enhancing student nutrition. This collaboration will benefit over 27,000 public school students by introducing a farm-to-school program and creating career opportunities for local residents. Such initiatives highlight Aramark's commitment to community engagement and improving the student dining experience.

The current stock price of ARMK is $39.12, showing a slight decrease of 0.62%. The stock has experienced a drop of $0.245 today, with fluctuations between $38.72 and $39.63. Over the past year, ARMK's stock has seen a high of $44.49 and a low of $29.92, indicating some volatility in its market performance.

Aramark's market capitalization is approximately $10.28 billion, reflecting its substantial presence in the industry. Today's trading volume for ARMK is 2,322,239 shares on the NYSE, suggesting active investor interest. Despite the recent stock price decrease, the company's strategic initiatives, like the partnership with Okaloosa County, may positively impact its future performance.

• UBS sets a price target of $46 for NYSE:ARMK, indicating a potential upside of 16.28%.
• Aramark reports a 29% year-over-year increase in adjusted EPS to $0.40, aligning with analyst expectations.
• The company achieves record client retention levels over 97% and secures one of the largest new client contracts in its history.

Aramark Holdings (NYSE: ARMK) is a prominent player in the food services and facilities management industry. The company operates globally, providing essential services to various sectors, including education, healthcare, and business. Aramark is recognized as a leading provider in North America and holds a top-three position internationally in most of its significant markets.

On August 6, 2025, UBS set a price target of $46 for ARMK, suggesting a potential price increase of approximately 16.28% from its current price of $39.56. This optimistic outlook comes on the heels of Aramark's Q3 FY2025 earnings report, which revealed a 29% year-over-year increase in adjusted earnings per share (EPS), meeting analyst forecasts at $0.40. Despite a slight revenue miss, with GAAP total revenue at $4.63 billion compared to the estimated $4.65 billion, the company achieved record profitability.

Aramark's strong performance is driven by operational efficiency gains and robust business retention. The company has secured one of the largest new client contracts in its history and achieved record client retention levels, now exceeding 97%. These achievements, along with the integration of AI-driven solutions in its Supply Chain optimization initiatives, have prompted management to reaffirm a robust full-year outlook.

Historically, Aramark's stock has shown a 50:50 chance of moving up or down following earnings announcements, with an average one-day increase of 3.5% and a maximum recorded gain of 10%. In the second quarter of fiscal 2025, Aramark reported a 2% increase in revenue to $4.28 billion and 3% organic growth, despite facing external challenges. The company's operating income rose by 9% to $174 million, and adjusted earnings per share increased by 22% to $0.34.

Currently, ARMK's stock price is $39.56, reflecting a decrease of 8.23% with a change of -$3.55. The stock has fluctuated between a low of $39.29 and a high of $41.51 during the day. Over the past year, ARMK has reached a high of $44.49 and a low of $29.92. The company has a market capitalization of approximately $10.37 billion, with a trading volume of 6.41 million shares today.

Aramark (NYSE:ARMK) is a global leader in providing food, facilities, and uniform services. The company operates across various sectors, including education, healthcare, and business services. As a major player in the service industry, Aramark competes with companies like Compass Group and Sodexo. The company's financial health and performance are closely monitored by investors and analysts alike.

On February 4, 2025, Aramark is set to release its quarterly earnings, with Wall Street analysts estimating an earnings per share (EPS) of $0.48 and projected revenue of approximately $4.61 billion. This anticipated year-over-year increase in earnings is driven by higher revenues for the quarter ending December 2024. The market is keenly observing these expectations, as the actual results could significantly impact Aramark's stock price.

If Aramark surpasses these estimates, the stock may experience an upward movement. Conversely, a miss on these expectations could lead to a decline in stock value. The management's discussion during the earnings call will be crucial in determining the sustainability of any immediate price changes and future earnings projections. As highlighted by Zacks, Aramark is positioned for a potential positive EPS surprise.

Aramark's financial metrics provide insight into its market valuation. The company's price-to-earnings (P/E) ratio is approximately 39.11, indicating how much investors are willing to pay per dollar of earnings. The price-to-sales ratio stands at about 0.59, suggesting the market values its sales at this multiple. The enterprise value to sales ratio is around 0.87, reflecting the company's total valuation relative to its sales.

The enterprise value to operating cash flow ratio is approximately 20.92, showing the relationship between its enterprise value and cash flow from operations. The earnings yield is about 2.56%, providing insight into the return on investment for shareholders. Aramark's debt-to-equity ratio is approximately 1.83, indicating the proportion of debt used to finance the company's assets relative to equity. Lastly, the current ratio is around 0.81, suggesting the company's ability to cover its short-term liabilities with its short-term assets.

Aramark (NYSE:ARMK) is a global leader in providing food, facilities, and uniform services. The company operates across various sectors, including education, healthcare, and business services. As a major player in the service industry, Aramark competes with companies like Compass Group and Sodexo. The company's financial health and performance are closely monitored by investors and analysts alike.

On February 4, 2025, Aramark is set to release its quarterly earnings, with Wall Street analysts estimating an earnings per share (EPS) of $0.48 and projected revenue of approximately $4.61 billion. This anticipated year-over-year increase in earnings is driven by higher revenues for the quarter ending December 2024. The market is keenly observing these expectations, as the actual results could significantly impact Aramark's stock price.

If Aramark surpasses these estimates, the stock may experience an upward movement. Conversely, a miss on these expectations could lead to a decline in stock value. The management's discussion during the earnings call will be crucial in determining the sustainability of any immediate price changes and future earnings projections. As highlighted by Zacks, Aramark is positioned for a potential positive EPS surprise.

Aramark's financial metrics provide insight into its market valuation. The company's price-to-earnings (P/E) ratio is approximately 39.11, indicating how much investors are willing to pay per dollar of earnings. The price-to-sales ratio stands at about 0.59, suggesting the market values its sales at this multiple. The enterprise value to sales ratio is around 0.87, reflecting the company's total valuation relative to its sales.

The enterprise value to operating cash flow ratio is approximately 20.92, showing the relationship between its enterprise value and cash flow from operations. The earnings yield is about 2.56%, providing insight into the return on investment for shareholders. Aramark's debt-to-equity ratio is approximately 1.83, indicating the proportion of debt used to finance the company's assets relative to equity. Lastly, the current ratio is around 0.81, suggesting the company's ability to cover its short-term liabilities with its short-term assets.

Aramark (NYSE:ARMK) is a global leader in food, facilities, and uniform services. The company operates in various sectors, including education, healthcare, and sports, providing essential services to a wide range of clients. Aramark competes with companies like Compass Group and Sodexo in the service industry.

On November 11, 2024, Aramark reported earnings per share (EPS) of $0.54, slightly above the estimated $0.53. Despite this positive earnings performance, the company generated revenue of $4.42 billion, which was below the expected $4.66 billion. This revenue figure also represents a 9.9% decline compared to the same period last year, as highlighted by Zacks.

The company's EPS of $0.54 met the consensus estimate, indicating stability in earnings performance. However, the revenue shortfall resulted in a negative surprise of 0.51%. This mixed result has led analysts to adjust their forecasts, reflecting a more optimistic outlook for Aramark's future financial performance.

Aramark's financial metrics provide further insight into its valuation. The company has a price-to-earnings (P/E) ratio of 38.22, suggesting that investors are willing to pay a premium for its earnings. The price-to-sales ratio of 0.58 and enterprise value to sales ratio of 0.86 indicate how the market values the company's sales and overall valuation.

The company's debt-to-equity ratio of 1.83 highlights its reliance on debt financing, while a current ratio of 0.81 suggests potential liquidity challenges. Despite these factors, Aramark's earnings yield of 2.62% offers a perspective on the return on investment, providing a comprehensive view of its financial health.

Aramark (NYSE:ARMK) is a global leader in food, facilities, and uniform services. The company operates in various sectors, including education, healthcare, and sports, providing essential services to a wide range of clients. Aramark competes with companies like Compass Group and Sodexo in the service industry.

On November 11, 2024, Aramark reported earnings per share (EPS) of $0.54, slightly above the estimated $0.53. Despite this positive earnings performance, the company generated revenue of $4.42 billion, which was below the expected $4.66 billion. This revenue figure also represents a 9.9% decline compared to the same period last year, as highlighted by Zacks.

The company's EPS of $0.54 met the consensus estimate, indicating stability in earnings performance. However, the revenue shortfall resulted in a negative surprise of 0.51%. This mixed result has led analysts to adjust their forecasts, reflecting a more optimistic outlook for Aramark's future financial performance.

Aramark's financial metrics provide further insight into its valuation. The company has a price-to-earnings (P/E) ratio of 38.22, suggesting that investors are willing to pay a premium for its earnings. The price-to-sales ratio of 0.58 and enterprise value to sales ratio of 0.86 indicate how the market values the company's sales and overall valuation.

The company's debt-to-equity ratio of 1.83 highlights its reliance on debt financing, while a current ratio of 0.81 suggests potential liquidity challenges. Despite these factors, Aramark's earnings yield of 2.62% offers a perspective on the return on investment, providing a comprehensive view of its financial health.

Jefferies analysts increased their price target for ARAMARK (NYSE:ARMK) to $37 from $35, maintaining a Buy rating on the stock.

The analysts adjusted fiscal 2024 estimates to account for higher-than-expected foreign exchange headwinds but remain optimistic about the company's prospects.

The analysts highlighted attractive organic growth driven by strong outsourcing trends, favorable pricing, and continued new business wins.

The analysts also anticipate that ARAMARK's operating income margin will improve as new business matures, inflation eases, and cost-saving measures take effect.