ARAMARK Holdings Corp. (ARMK)
NYSE:ARMK
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ARAMARK Holdings
(NYSE:ARMK)
Select Model
Select Model
Rating:65Neutral
Price Target:
$55.00
▲(21.55% Upside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by stable-but-debt-constrained financials and a constructive earnings outlook with raised revenue guidance and continued margin expansion. Technicals are supportive but show overbought conditions, while valuation is a headwind due to a higher P/E and modest yield.
Positive Factors
Contracted, Recurring Business Model
Aramark’s core model relies on multi-year contracts across food, facilities and uniforms, creating recurring revenue and high retention incentives. This structurally smooths revenue visibility, supports predictable cash flows, and ties growth to contract wins and retention rather than one-off demand spikes.
Negative Factors
Elevated Leverage
A debt-heavy capital structure increases refinancing and interest-rate sensitivity, constraining strategic flexibility. Even with cash generation improvements, elevated leverage limits room for large M&A, increases fixed financial costs and leaves the firm exposed to macro shocks or higher rates over the next 2–6 months.
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Positive Factors
Negative Factors
Contracted, Recurring Business Model
Aramark’s core model relies on multi-year contracts across food, facilities and uniforms, creating recurring revenue and high retention incentives. This structurally smooths revenue visibility, supports predictable cash flows, and ties growth to contract wins and retention rather than one-off demand spikes.
Read all positive factors
ARAMARK Holdings Key Performance Indicators (KPIs)
ARAMARK Holdings (ARMK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.48B
Dividend Yield1.14%
Average Volume (3M)3.21M
Price to Earnings (P/E)27.5
Beta (1Y)0.69
Revenue Growth10.15%
EPS Growth3.07%
CountryUS
Employees266,680
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)1.36
Shares Outstanding262,953,550
10 Day Avg. Volume4,336,480
30 Day Avg. Volume3,213,076
Financial Highlights & Ratios
PEG Ratio1.31
Price to Book (P/B)3.27
Price to Sales (P/S)0.56
P/FCF Ratio22.64
Enterprise Value/Market Cap1.44
Enterprise Value/Revenue1.00
Enterprise Value/Gross Profit15.59
Enterprise Value/Ebitda14.61
Forecast
1Y Price Target
$55.67Price Target Upside23.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)2.25
Revenue Forecast (FY)$19.95B
ARAMARK Holdings Business Overview & Revenue Model
Company Description
Aramark provides food, facilities, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally. It operates through three segments: Food and Support Servic...
How the Company Makes Money
Aramark makes money primarily by providing contracted, outsourced services to institutions and enterprises, typically under multi-year agreements. Its core revenue streams include: (1) Food services—operating cafeterias, dining halls, catering, an...
ARAMARK Holdings Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call highlighted broad-based revenue and profit acceleration, strong cash generation, high client retention and substantial new-business momentum, including a strategically important entry into the hyperscale AI data center market (Aramark Nexus) that could add significant upside. Near-term comparability is aided by a calendar/53rd-week benefit and Nexus ramp timing remains uncertain and excluded from FY26 guidance. Operationally the company emphasized disciplined cost and supply-chain management and raised the top-end of revenue guidance while reaffirming profit targets.Positive Updates
Record Organic Revenue Growth
Q2 organic revenue grew 12% to $4.8B (includes ~3% calendar/53rd-week benefit). FSS U.S. organic revenue +12% to $3.4B (would be ~8% without calendar shift). International organic revenue +13% to $1.4B (includes ~1% calendar benefit). Year-to-date organic revenue growth 8.5%.
Negative Updates
Calendar/53rd-Week Effects and Comparability Distortion
An estimated calendar shift (53rd week) drove a ~3% boost to Q2 organic revenue and benefited AOI by roughly $25M (~12%) and adjusted EPS growth by ~20%, creating a non-recurring comparator that inflates quarter-over-quarter growth metrics.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Organic Revenue Growth
Q2 organic revenue grew 12% to $4.8B (includes ~3% calendar/53rd-week benefit). FSS U.S. organic revenue +12% to $3.4B (would be ~8% without calendar shift). International organic revenue +13% to $1.4B (includes ~1% calendar benefit). Year-to-date organic revenue growth 8.5%.
Read all positive updates
Company Guidance
Management updated fiscal 2026 guidance by raising organic revenue growth to the high end of its prior 7%–9% range, while reaffirming adjusted operating income (AOI) growth of 12%–17% and adjusted EPS growth of 20%–25%, and saying they expect continued, accelerated AOI margin expansion (management cited historical 30–40 bps tailwinds from new‑business openings); the outlook does not yet include contributions from the new hyperscale AI data‑center engagement. For context, Q2 organic revenue was +12% to $4.8B (including an estimated +3% calendar/53rd‑week benefit; H1 organic +8.5%), operating income was $220M (+26%), AOI $258M (+24% constant currency; AOI margins +50 bps; calendar shift aided AOI by ~$25M or ~12%), GAAP EPS $0.38 and adjusted EPS $0.49 (+40% cc; calendar shift aided adj. EPS by ~20%), interest expense $82M, adjusted tax rate 25.3%, net cash from operations $400M (+56%), free cash flow $305M (+116%), ~$194M of share repurchases to date, $55M of term‑loan repayments, >$1.4B cash availability and a target leverage ratio below 3.0x by year‑end.ARAMARK Holdings Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
52
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.41B | 18.51B | 17.40B | 16.08B | 13.69B | 12.10B |
| Gross Profit | 1.25B | 1.07B | 1.43B | 1.31B | 1.07B | 1.09B |
| EBITDA | 1.33B | 1.25B | 1.19B | 1.44B | 830.05M | 831.55M |
| Net Income | 357.03M | 326.39M | 262.52M | 674.11M | 194.48M | -90.83M |
Balance Sheet | ||||||
| Total Assets | 13.84B | 13.30B | 12.67B | 16.87B | 15.08B | 14.38B |
| Cash, Cash Equivalents and Short-Term Investments | 475.72M | 639.10M | 714.83M | 2.04B | 329.45M | 532.59M |
| Total Debt | 6.42B | 5.72B | 5.57B | 6.94B | 7.79B | 7.83B |
| Total Liabilities | 10.50B | 10.14B | 9.63B | 13.15B | 12.04B | 11.64B |
| Stockholders Equity | 3.28B | 3.15B | 3.04B | 3.71B | 3.03B | 2.72B |
Cash Flow | ||||||
| Free Cash Flow | 639.38M | 454.46M | 299.09M | 305.02M | 329.74M | 281.74M |
| Operating Cash Flow | 870.29M | 921.03M | 726.51M | 766.43M | 694.50M | 657.08M |
| Investing Cash Flow | -556.47M | -722.42M | -415.86M | 208.91M | -831.29M | -634.39M |
| Financing Cash Flow | -768.75M | -234.63M | -1.56B | 653.65M | -37.69M | -2.01B |
ARAMARK Holdings Technical Analysis
Positive
45.25
Price Trends
44.53
Positive
41.90
Positive
40.00
Positive
Market Momentum
2.21
Negative
68.20
Neutral
72.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARMK, the sentiment is Positive. The current price of 45.25 is below the 20-day moving average (MA) of 47.96, above the 50-day MA of 44.53, and above the 200-day MA of 40.00, indicating a bullish trend. The MACD of 2.21 indicates Negative momentum. The RSI at 68.20 is Neutral, neither overbought nor oversold. The STOCH value of 72.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARMK.
ARAMARK Holdings Risk Analysis
ARAMARK Holdings disclosed 32 risk factors in its most recent earnings report. ARAMARK Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ARAMARK Holdings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $69.19B | 40.19 | 41.47% | 0.88% | 8.71% | 9.55% | |
69 Neutral | $4.61B | 49.97 | 6.24% | 0.71% | 0.76% | -8.22% | |
67 Neutral | $1.73B | 2.56 | 8.32% | ― | 28.34% | 67.93% | |
65 Neutral | $13.48B | 27.46 | 11.23% | 1.14% | 10.15% | 3.07% | |
65 Neutral | $2.35B | 17.89 | 8.80% | 2.20% | 5.59% | 100.00% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $15.67B | 13.26 | 6.51% | 2.20% | -0.33% | 20.26% |
* Industrials Sector Average
ARMK
ARAMARK Holdings
51.26
12.58
32.52%
ABM
ABM Industries
40.19
-9.59
-19.26%
CBZ
CBIZ
32.23
-39.70
-55.19%
CTAS
Cintas
172.93
-47.27
-21.47%
UNF
UniFirst
265.47
83.35
45.76%
RTO
Rentokil Initial
31.34
7.90
33.71%
ARAMARK Holdings Corporate Events
Executive/Board Changes
Aramark Grants Special RSUs to Key Operating Executives
Positive
Feb 20, 2026
On February 17, 2026, Aramark’s board-level Compensation and Human Resources Committee approved a special grant of $3 million in Restricted Stock Units to Marc Bruno, Chief Operating Officer, U.S. Food and Facilities. The award, effective Fe...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.