Aramark Website

Aramark

NYSE-ARMK

Company Overview

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 Services United States, Food and Support Services International, and Uniform and Career Apparel. The company offers food-related managed services, including dining, catering, food service management, and convenience-oriented retail services; non-clinical support services, such as patient food and nutrition, retail food, and procurement services; and plant operations and maintenance, custodial/housekeeping, energy management, grounds keeping, and capital project management services. It also provides on-site restaurants, catering, convenience stores, and executive dining services; beverage and vending services; and facility management services comprising landscaping, transportation, payment, and other facility consulting services relating to building operations. In addition, the company offers concessions, banquet, and catering services; retail services and merchandise sale, recreational, and lodging services; and facility management services at sports, entertainment, and recreational facilities. Further, the company offers correctional food; and operates commissaries, laundry facilities, and property rooms. Additionally, it provides design, sourcing and manufacturing, delivery, cleaning, maintenance, and marketing services for uniforms and accessories; provides managed restroom services; and rents uniforms, work clothing, outerwear, particulate-free garments, and non-garment items and related services that include mats, shop towels, and first aid supplies. The company was formerly known as ARAMARK Holdings Corporation and changed its name to Aramark in May 2014. Aramark was founded in 1959 and is based in Philadelphia, Pennsylvania.

  • Name

    Aramark

  • CEO

    John J. Zillmer

  • Website

    www.aramark.com

  • Sector

    Hotels, Restaurants and Leisure

  • Year Founded

    1959

Company Statistics

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Bulls Say

  • Aramark’s food GPOs, Global Supply Chain Group and Avendra, are rapidly expanding their purchasing power, increasing the likelihood that they can close the margin gap with their global peers.

  • Economic tailwinds, such as high inflation and increasingly complex supply chains, increase the benefits of outsourcing food services, benefiting Aramark.

  • Employers are putting a greater focus on benefits outside of salary, increasing the importance of food services in Sodexo’s largest subsegment, business and industry.

Bears Say

  • Aramark’s food GPOs, Global Supply Chain Group and Avendra, have significantly lower compliance rates, which have led to historically lower margins compared with Compass and Foodbuy.

  • Greater adoption of work from home has permanently impaired the business and industry subsegment, which is most popular among younger workers.

  • Aramark has high negative exposure to the employment rate, most notably in the United States, leaving it vulnerable to an economic downturn.

Source: Morningstar Analysis - Dec 09, 2025

What's happening

Nov 12, 2025 - Dec 12, 2025

Aramark Faces Mixed Signals Amid Earnings Disappointment and Strategic Initiatives

  • Aramark announced its largest dividend increase ever at 14.3%, raising the quarterly payout to $0.12 per share.
  • Analyst upgrades from Citi raised ARMK's price target from $46.50 to $49, maintaining a Buy rating.
  • Partnerships aimed at enhancing operational efficiencies through AI were established with the Alabama Department of Corrections.

Over the past month, Aramark (NYSE: ARMK) experienced a decline of 2.1%. This underperformance is notable when compared to the S&P 500, which returned 0.7% during the same period, resulting in an underperformance of approximately -2.8% relative to this index. The decline followed a significant drop after its Q4 earnings report on November 17, where actual earnings per share (EPS) fell short of expectations at $0.57 versus an anticipated $0.65; this led shares to plummet by over 10% in premarket trading.

Despite these challenges, there were positive developments that contributed to some bullish sentiment around Aramark's stock throughout the month. On November 18, Aramark announced its largest dividend increase ever at a rate of 14.3%, elevating the quarterly payout to $0.12 per share and reflecting investor confidence in future cash flows despite recent setbacks.

Analyst support also played a role in stabilizing ARMK’s stock price as Citi raised its price target from $46.50 to $49 while maintaining a Buy rating just before month-end on November 19; this was interpreted positively by investors amid volatility surrounding earnings performance.

Additionally, partnerships such as that between Aramark Correctional Services and the Alabama Department of Corrections were announced early December; these initiatives are expected to bolster operational efficiencies through AI systems across multiple facilities and may enhance revenue streams moving forward.

Overall trends indicated mixed signals for investors considering ARMK’s trajectory over this one-month period marked by both promising initiatives and disappointing financial results leading up to year-end projections indicating revenues between $19 billion and nearly $20 billion for FY2026—these figures reflect strong business fundamentals despite immediate setbacks post-earnings announcement. Aramark outperformed the Consumer Discretionary (XLY) sector by 47.7%.

NYSE:ARMK