Aramark (NYSE:ARMK) Hits New 12-Month High Following Strong Earnings

Shares of Aramark (NYSE:ARMK) hit a new 52-week high during trading on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $51.18 and last traded at $48.9270, with a volume of 858943 shares trading hands. The stock had previously closed at $44.56.

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

Aramark Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 3rd. Shareholders of record on Wednesday, May 20th will be issued a dividend of $0.12 per share. The ex-dividend date of this dividend is Wednesday, May 20th. This represents a $0.48 dividend on an annualized basis and a yield of 1.0%. Aramark’s dividend payout ratio (DPR) is currently 40.34%.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the company. Oppenheimer upped their price objective on Aramark from $43.00 to $50.00 and gave the stock an “outperform” rating in a research note on Wednesday, March 25th. Weiss Ratings reissued a “hold (c)” rating on shares of Aramark in a report on Friday, March 27th. Stifel Nicolaus upped their price target on Aramark from $44.00 to $47.00 and gave the stock a “buy” rating in a research note on Wednesday, February 11th. Morgan Stanley set a $45.00 price objective on shares of Aramark in a report on Tuesday, February 10th. Finally, Citigroup boosted their target price on shares of Aramark from $49.00 to $51.00 and gave the stock a “buy” rating in a report on Thursday, February 12th. Eight investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $48.67.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of ARMK. Activest Wealth Management bought a new stake in Aramark in the fourth quarter worth $27,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of Aramark in the 3rd quarter worth $28,000. Cedar Mountain Advisors LLC bought a new stake in shares of Aramark in the 1st quarter worth about $32,000. Kestra Advisory Services LLC bought a new stake in shares of Aramark in the 4th quarter worth about $32,000. Finally, Quarry LP purchased a new stake in shares of Aramark during the 3rd quarter valued at about $35,000.

Aramark Trading Up 8.7%

The company has a debt-to-equity ratio of 1.94, a quick ratio of 1.13 and a current ratio of 1.27. The stock’s fifty day moving average is $42.55 and its 200 day moving average is $39.87. The stock has a market cap of $12.73 billion, a P/E ratio of 40.75, a P/E/G ratio of 1.10 and a beta of 1.08.

Aramark Company Profile

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.