Aramark (NYSE:ARMK) Sets New 1-Year High Following Better-Than-Expected Earnings

Aramark (NYSE:ARMK)’s stock price hit a new 52-week high during mid-day trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $51.18 and last traded at $48.9270, with a volume of 858943 shares changing hands. The stock had previously closed at $44.56.

The company reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.47 by $0.02. Aramark had a net margin of 1.69% and a return on equity of 16.15%. The company had revenue of $4.91 billion for the quarter, compared to analysts’ expectations of $4.75 billion. During the same quarter in the previous year, the company earned $0.35 earnings per share. Aramark’s quarterly revenue was up 14.7% on a year-over-year basis. Aramark has set its FY 2026 guidance at 2.180-2.280 EPS.

Aramark Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 3rd. Stockholders of record on Wednesday, May 20th will be paid a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Wednesday, May 20th. Aramark’s dividend payout ratio (DPR) is presently 40.34%.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. Oppenheimer upped their price target on Aramark from $43.00 to $50.00 and gave the stock an “outperform” rating in a research note on Wednesday, March 25th. Stifel Nicolaus boosted their target price on shares of Aramark from $44.00 to $47.00 and gave the company a “buy” rating in a report on Wednesday, February 11th. Robert W. Baird set a $50.00 price target on shares of Aramark in a research note on Wednesday, February 11th. Bank of America began coverage on shares of Aramark in a research note on Tuesday, February 17th. They set a “buy” rating and a $50.00 price objective on the stock. Finally, Morgan Stanley set a $45.00 price objective on shares of Aramark in a report on Tuesday, February 10th. Eight equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $48.67.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Capital International Investors boosted its stake in shares of Aramark by 1.0% during the 4th quarter. Capital International Investors now owns 24,894,503 shares of the company’s stock worth $917,789,000 after acquiring an additional 247,594 shares during the last quarter. Massachusetts Financial Services Co. MA raised its holdings in Aramark by 3.4% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 19,312,451 shares of the company’s stock worth $741,598,000 after purchasing an additional 639,423 shares during the period. Janus Henderson Group PLC increased its position in Aramark by 0.7% in the fourth quarter. Janus Henderson Group PLC now owns 18,195,901 shares of the company’s stock worth $670,702,000 after buying an additional 128,199 shares in the last quarter. Farallon Capital Management LLC raised its stake in shares of Aramark by 4.0% in the fourth quarter. Farallon Capital Management LLC now owns 9,357,046 shares of the company’s stock worth $344,901,000 after buying an additional 360,844 shares during the period. Finally, AQR Capital Management LLC raised its stake in shares of Aramark by 163.1% in the fourth quarter. AQR Capital Management LLC now owns 8,860,010 shares of the company’s stock worth $326,580,000 after buying an additional 5,492,046 shares during the period.

Aramark Trading Up 8.7%

The stock has a 50-day moving average price of $42.55 and a two-hundred day moving average price of $39.87. The stock has a market capitalization of $12.73 billion, a PE ratio of 40.75, a PEG ratio of 1.10 and a beta of 1.08. The company has a debt-to-equity ratio of 1.94, a quick ratio of 1.13 and a current ratio of 1.27.

About Aramark

Aramark (NYSE: ARMK) is a global provider of food services, facilities management and uniform solutions, serving clients across a wide array of industries including education, healthcare, business and government. The company operates through three primary segments: Food and Support Services, Uniform and Career Apparel, and Facility Services, delivering integrated solutions designed to enhance guest experiences, improve operational efficiencies and maintain safe, clean environments. Aramark’s offerings include corporate dining, patient and senior nutrition, campus dining, sports and entertainment concessions, custodial services, technical maintenance and industrial laundry.

Founded in 1959 and headquartered in Philadelphia, Pennsylvania, Aramark has expanded its footprint to more than 20 countries, with a strong presence in North America, Latin America, Europe and Asia.