ARAMARK Holdings (ARMK)
NYSE:ARMK
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ARAMARK Holdings
(NYSE:ARMK)
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Rating:68Neutral
Price Target:
$44.00
▲(2.66% Upside)
Action:ReiteratedDate:02/21/26
The score is driven primarily by stable-to-improving fundamentals (strong revenue momentum and positive cash generation) and supportive technical uptrend. Offsetting factors are compressed margins and softer cash conversion, plus a relatively expensive valuation (high P/E with only a modest dividend). Earnings-call tone and reiterated FY26 guidance provide additional support.
Positive Factors
Recurring revenue & strong client retention
High client retention plus material new strategic wins create durable contracted revenue and reduce renewal risk. Recurring food, facilities and uniform contracts lock in cash flow, support predictable backlog, and amplify scale benefits across procurement and operations for multi-year revenue stability.
Negative Factors
Thin and compressed profitability
Very low operating and net margins limit earnings resilience to cost inflation or revenue mix shifts. Small margin buffers mean modest cost increases or contract mix changes can erase profits, constraining reinvestment, FCF conversion, and long-term returns unless structural margin recovery occurs.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue & strong client retention
High client retention plus material new strategic wins create durable contracted revenue and reduce renewal risk. Recurring food, facilities and uniform contracts lock in cash flow, support predictable backlog, and amplify scale benefits across procurement and operations for multi-year revenue stability.
Read all positive factors
ARAMARK Holdings (ARMK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.27B
Dividend Yield1.14%
Average Volume (3M)2.24M
Price to Earnings (P/E)25.0
Beta (1Y)0.69
Revenue Growth6.35%
EPS Growth24.07%
CountryUS
Employees266,680
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.51
Shares Outstanding262,836,000
10 Day Avg. Volume2,009,771
30 Day Avg. Volume2,239,030
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 Cap1.57
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit13.46
Enterprise Value/Ebitda13.92
Forecast
1Y Price Target
$48.36Price Target Upside12.83% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)2.22
Revenue Forecast (FY)$19.79B
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 generates revenue primarily through its three main business segments: Food and Support Services, Uniform and Career Apparel, and Facilities Management. The Food and Support Services segment, which includes services such as catering, dining...
ARAMARK Holdings Key Performance Indicators (KPIs)
ARAMARK Holdings Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call conveyed strong positive momentum: solid organic revenue growth, exceptional client retention, record-level new business wins (notably large healthcare system contracts), robust International performance, and meaningful GPO/supply chain expansion with AI-driven efficiencies. Short-term headwinds were largely timing-related (a 53rd-week calendar shift) and seasonal (higher working capital and elevated Q1 CapEx tied to new wins), plus isolated mobilization costs and commodity pressures. Management reiterated confident FY26 guidance and highlighted actions to improve capital structure and shareholder returns.Positive Updates
Strong Organic Revenue Growth
Organic revenue grew 5% in Q1 to $4.8 billion; excluding a calendar shift impact (~$125 million, ~3% of revenue) organic growth would have been approximately 8%.
Negative Updates
Calendar Shift Impact on Quarterly Comparisons
A 53rd week in FY2025 shifted activity timing into FY2026 quarters: Q1 was negatively impacted by ~3% of revenue (~$125 million) and AOI by ~$25 million; management noted adjusted EPS growth was adversely affected by ~13% in Q1. The shift alters quarter-to-quarter cadence though not full-year results.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Organic Revenue Growth
Organic revenue grew 5% in Q1 to $4.8 billion; excluding a calendar shift impact (~$125 million, ~3% of revenue) organic growth would have been approximately 8%.
Read all positive updates
Company Guidance
Aramark reiterated fiscal 2026 guidance and provided Q1 metrics: organic revenue was $4.8B, up 5% (would have been ~8% excluding a ~$125M/≈3% calendar-shift), FSS US organic revenue was $3.4B (+2%, ~+5% ex-shift), International was $1.5B (+>13% organic); operating income was $218M and adjusted operating income (AOI) was $263M (up 1% cc; AOI would have been ~+11% without an estimated $25M calendar-shift drag), US AOI down 1% (would have been ~+9% ex-shift), interest expense $81M, adjusted tax rate ~25%, GAAP EPS $0.36 and adjusted EPS $0.51 (calendar shift cut adjusted EPS growth by ~13%); Q2 should get an opposite ~3% revenue benefit from the calendar shift; full-year guidance remains organic revenue +7–9%, AOI +12–17%, adjusted EPS +20–25% and leverage below 3x; quarter-end cash availability ~$1.4B, $30M of share repurchases, $2.4B of 2030 term loans repriced saving 25 bps, Q1 CapEx ~4.5% of revenue (expected to normalize toward ~3.5% FY), and global supply‑chain/GPO contracted spend is >$20B with double‑digit growth.ARAMARK Holdings Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
72
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.79B | 18.51B | 17.40B | 16.08B | 13.69B | 12.10B |
| Gross Profit | 1.31B | 1.07B | 1.43B | 1.31B | 1.07B | 1.09B |
| EBITDA | 1.27B | 1.25B | 1.19B | 1.44B | 830.05M | 831.55M |
| Net Income | 316.94M | 326.39M | 262.52M | 674.11M | 194.48M | -90.83M |
Balance Sheet | ||||||
| Total Assets | 13.54B | 13.30B | 12.67B | 16.87B | 15.08B | 14.38B |
| Cash, Cash Equivalents and Short-Term Investments | 439.63M | 639.10M | 714.83M | 2.04B | 329.45M | 532.59M |
| Total Debt | 6.84B | 5.72B | 5.57B | 6.94B | 7.79B | 7.83B |
| Total Liabilities | 10.31B | 10.14B | 9.63B | 13.15B | 12.04B | 11.64B |
| Stockholders Equity | 3.21B | 3.15B | 3.04B | 3.71B | 3.03B | 2.72B |
Cash Flow | ||||||
| Free Cash Flow | 257.12M | 454.46M | 299.09M | 305.02M | 329.74M | 281.74M |
| Operating Cash Flow | 725.99M | 921.03M | 726.51M | 766.43M | 694.50M | 657.08M |
| Investing Cash Flow | -645.30M | -722.42M | -415.86M | 208.91M | -831.29M | -634.39M |
| Financing Cash Flow | -141.63M | -234.63M | -1.56B | 653.65M | -37.69M | -2.01B |
ARAMARK Holdings Technical Analysis
Positive
42.86
Price Trends
40.41
Positive
39.07
Positive
39.39
Positive
Market Momentum
0.76
Negative
60.99
Neutral
78.31
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 42.86 is above the 20-day moving average (MA) of 41.05, above the 50-day MA of 40.41, and above the 200-day MA of 39.39, indicating a bullish trend. The MACD of 0.76 indicates Negative momentum. The RSI at 60.99 is Neutral, neither overbought nor oversold. The STOCH value of 78.31 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 | $69.99B | 40.19 | 41.47% | 0.88% | 8.60% | 11.45% | |
69 Neutral | $4.45B | 49.97 | 6.24% | 0.71% | 0.20% | 2.72% | |
68 Neutral | $11.27B | 25.02 | 10.17% | 1.14% | 6.35% | 24.07% | |
65 Neutral | $2.30B | 17.89 | 8.80% | 2.20% | 4.62% | 102.72% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $1.49B | 27.64 | 6.21% | ― | 59.19% | -35.47% | |
60 Neutral | $16.76B | 31.61 | 6.51% | 2.20% | 1.56% | -32.50% |
* Industrials Sector Average
ARMK
ARAMARK Holdings
42.86
10.56
32.68%
ABM
ABM Industries
39.23
-6.55
-14.30%
CBZ
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27.03
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CTAS
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174.93
-32.90
-15.83%
UNF
UniFirst
256.22
82.42
47.42%
RTO
Rentokil Initial
33.60
11.58
52.56%
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...
Executive/Board ChangesShareholder Meetings
Aramark Shareholders Reaffirm Board, Auditor and Pay Plan
Positive
Feb 4, 2026
At its February 3, 2026 annual meeting, Aramark shareholders re-elected all 11 director nominees, overwhelmingly ratified Deloitte Touche as auditor for fiscal 2026, and approved executive compensation in a non-binding vote, signaling strong inve...
Private Placements and Financing
Aramark Holdings Reprices and Refinances U.S. Loans
Positive
Dec 12, 2025
On December 11, 2025, Aramark Services, Inc., a subsidiary of Aramark Holdings, entered into an amendment to its Credit Agreement, resulting in the repricing and refinancing of its U.S. Term B-8 Loans with new U.S. Term B-10 Loans amounting to app...
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.