PHILADELPHIA--(BUSINESS WIRE)--Aramark Destinations is celebrating a year of impactful community partnerships across its national park and conservation properties, reinforcing its commitment to supporting local communities through food donations, volunteer service, and collaboration with rural partners. Across its hospitality portfolio, Aramark Destinations remains focused on supporting the people and places that make each park and community unique. Whether through food donations, seasonal volunteering, or ...

Core Viewpoint - Aramark Inc. (NYSE:ARMK) is currently priced at $37.15, reflecting a slight increase of 0.27% in the current market session, but has seen a decrease of 1.23% over the past month and 10.54% over the past year, raising questions about its valuation despite current performance [1]. Group 1: P/E Ratio Analysis - The P/E ratio is a critical metric for investors, comparing the current share price to the company's earnings per share (EPS), and is used to assess performance against historical data and industry benchmarks [5]. - Aramark's P/E ratio is lower than the industry average P/E of 50.1 for the Hotels, Restaurants & Leisure sector, suggesting that the stock may be undervalued despite potential concerns about its performance relative to peers [6]. - A low P/E ratio can indicate undervaluation but may also reflect weak growth prospects or financial instability, emphasizing the need for a comprehensive analysis beyond just this metric [9][10].

I wrote about Aramark ( ARMK ) previously with a hold rating because I was not sure how the next quarter was going to play out, especially with US growth still soft andI am an individual investor that is now fully focus on managing my own capital that I have saved up over the years. My investing background spreads across a wide spectrum as I believe there are merits to each approach, for instance: Fundamental investing [Bottoms-up etc.], Technical investing [historical charts analysis], and to some extend m ...

I wrote about Aramark ( ARMK ) previously with a hold rating because I was not sure how the next quarter was going to play out, especially with US growth still soft andI am an individual investor that is now fully focus on managing my own capital that I have saved up over the years. My investing background spreads across a wide spectrum as I believe there are merits to each approach, for instance: Fundamental investing [Bottoms-up etc.], Technical investing [historical charts analysis], and to some extend m ...

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Financial Performance - In fiscal 2025, Aramark generated total revenue of $18.5 billion, with an operating income of $791.8 million and a net income attributable to stockholders of $326.4 million[21]. - Revenue for fiscal 2025 increased by 6.4% to $18,506.3 million compared to $17,400.7 million in fiscal 2024, driven by base business growth and the estimated impact of the fifty-third week[185][186]. - Operating income increased by $85.3 million to $791.8 million, reflecting improved revenue and cost management[185][190]. - Net income from continuing operations grew by 24.8% to $326.9 million, up from $261.9 million in the prior year[185]. - Interest expense, net decreased by 6.8% to $341.9 million, attributed to prior year payments and refinancing activities[192]. - The effective tax rate for fiscal 2025 was 24.1%, down from 28.2% in fiscal 2024, due to favorable tax effects from foreign subsidiaries[193]. Revenue Segmentation - The FSS United States segment contributed $13,211.9 million, accounting for 71% of total revenue, while the FSS International segment generated $5,294.4 million, representing 29% of total revenue[20][27]. - Approximately two-thirds of Aramark's revenue in fiscal 2025 was derived from profit and loss contracts, while one-third came from client interest contracts[44][45]. - Revenue from the FSS United States segment rose by 5.1% to $13,211.9 million, with notable growth in Business & Industry and Sports, Leisure & Corrections sectors[196]. - FSS International segment revenue increased by approximately 9.8% to $5,294.4 million in fiscal 2025 from $4,824.0 million in fiscal 2024[200]. Employee and Workforce - The company has a workforce of approximately 278,390 employees serving millions of customers globally[18]. - As of October 3, 2025, Aramark employed approximately 278,390 individuals, with 144,240 in FSS United States and 133,690 in FSS International[52]. - In fiscal 2025, Aramark hired approximately 90,000 new employees, a slight decrease from approximately 93,000 in fiscal 2024, with 94% being hourly employees[54]. - Approximately 39,000 employees in the United States and Canadian operations were covered by collective bargaining agreements as of October 3, 2025[52]. - The company has approximately 39,000 employees in the United States and Canada represented by unions, which could increase overall costs and affect operational flexibility[95]. Sustainability and Social Responsibility - Aramark's sustainability platform, "Be Well. Do Well.", focuses on achieving science-based greenhouse gas reduction targets validated by the Science Based Targets Initiative[49]. - In fiscal 2025, nearly 8,000 employees participated in 380 service projects benefiting community members in 200 cities across 13 countries[55]. - As of October 3, 2025, 36% of Aramark's Board of Directors and 57% of the CEO's direct reports were female, reflecting the company's commitment to diversity and inclusion[53]. - The company’s employee resource groups consist of over 5,000 employees across 15 countries, promoting a culture of inclusion and support for frontline associates[53]. Competition and Market Environment - Aramark's competitive landscape includes major competitors such as Compass Group plc, Sodexo SA, and regional service providers[46]. - The company faces significant competition in the food and support services sector, with many competitors willing to underbid or accept lower profit margins[78]. - The company may face challenges in retaining clients and renewing contracts on favorable terms due to increased competition and economic pressures[74]. Operational Challenges - Economic downturns and external factors such as inflation and supply chain disruptions have adversely affected demand for the company's services[69]. - The company has experienced increased operating costs due to rising food prices, wages, and other labor-related expenses, impacting profitability[79]. - The company faces challenges in sourcing raw materials and finished products due to global supply chain disruptions, which may lead to delivery delays and increased costs[86]. - Natural disasters and extreme weather events have previously resulted in business disruptions and may continue to impact revenue[71]. Regulatory and Compliance Issues - Aramark's operations are subject to various federal, state, and local regulations, including environmental, labor, and food safety laws, which may impact operational costs[57]. - The company is subject to risks related to compliance with various international regulations, including anti-corruption laws and labor laws[82]. - The company is subject to numerous complex laws and regulations related to food safety, which could result in significant liability and reputational harm[98]. - Compliance with employment laws and regulations is increasingly challenging, potentially impacting the company's ability to attract and retain talent[90]. Debt and Financial Obligations - As of October 3, 2025, the company's outstanding indebtedness was $5,405.9 million, with additional availability of $1,161.7 million under revolving credit facilities and $625.0 million under the Receivables Facility[116]. - The company is highly leveraged, which could limit its ability to react to economic changes and expose it to interest rate risks[116]. - The variable rate indebtedness may significantly increase debt service obligations if interest rates rise, negatively impacting net income and operating cash flows[118]. - The company currently believes it has adequate cash flows to service its indebtedness, but rising interest rates could impact its ability to maintain sufficient cash flows for debt service obligations[120]. Cybersecurity and Data Protection - The company maintains a global cybersecurity program to manage evolving cyber risks, although it has experienced cyber-based attacks without material adverse effects to date[109]. - The company has implemented a layered cybersecurity program to protect sensitive data, which includes ongoing risk assessments and compliance with industry standards[136]. - The cybersecurity team conducts regular assessments and has engaged third-party firms to enhance monitoring and incident response capabilities[143]. - The Audit Committee oversees cybersecurity programs and receives regular updates on risks and mitigation strategies from the Chief Information Security Officer (CISO)[145].

Group 1 - Morgan Stanley lowered the price target on Aramark (ARMK) to $43 from $44 [1] - The firm maintains an Equal Weight rating on Aramark shares [1] - Aramark's organic growth of 13.8% missed estimates by approximately 200 basis points [1] Group 2 - The 2026 guidance provided by Aramark was roughly in line with expectations [1]

Core Insights - Aramark (NYSE:ARMK) is projected to have a positive future with a price target of $44, indicating a potential increase of 22.09% from its current price of $36.04 [1][6] Financial Performance - The company reported quarterly earnings of $0.64 per share, slightly below the Zacks Consensus Estimate of $0.65, resulting in a negative surprise of 1.54% [2][6] - Revenue for the quarter ending September 2025 was $5.05 billion, missing the Zacks Consensus Estimate by 2.11%, but showing an increase from $4.42 billion in the same quarter the previous year [3][6] Stock Performance - Aramark's stock is currently priced at $36.04, reflecting a decrease of approximately 5.23% with a trading range between $35.07 and $37.47 during the day [4] - Over the past year, the stock has fluctuated between a high of $44.49 and a low of $29.92, indicating market volatility [4] Market Position - With a market capitalization of approximately $9.47 billion, Aramark is a significant player in the business services sector [5] - The stock's trading volume on the NYSE was 9,143,082 shares, highlighting its prominence in the market [5]

Core Insights - Aramark reported an earnings per share (EPS) of $0.33, which was significantly below the estimated $0.65, indicating inconsistency in meeting market expectations [2][6] - The company's revenue for the quarter was approximately $5.05 billion, exceeding the estimated $4.92 billion but falling short of the Zacks Consensus Estimate of $5.16 billion, reflecting a 14.3% year-over-year increase [3][6] - Following the earnings report, Aramark shares fell approximately 6%, reflecting investor disappointment and a cautious outlook for fiscal year 2026 with projected adjusted EPS between $2.18 and $2.28 [4][6] Financial Performance - Over the past four quarters, Aramark has exceeded consensus EPS estimates twice, showcasing some inconsistency in financial performance [2] - The company has consistently failed to surpass consensus revenue estimates over the last four quarters, despite showing revenue growth [3] - Financial metrics include a price-to-earnings (P/E) ratio of 29.37, a price-to-sales ratio of 0.52, and an enterprise value to sales ratio of 0.50, indicating a stable financial position [5] Market Context - The U.S. stock market experienced a downturn, with the Dow Jones index dropping over 150 points, contributing to the decline in Aramark's share price [4] - Competitors in the industry include Compass Group and Sodexo, which also provide similar services globally, highlighting the competitive landscape [1]

Market Overview - U.S. stocks traded lower, with the Dow Jones index falling more than 150 points, down 0.38% to 46,966.91, NASDAQ down 0.42% to 22,805.30, and S&P 500 down 0.40% to 6,707.46 [1] - European shares also declined, with the eurozone's STOXX 600 down 0.4%, Spain's IBEX 35 down 0.9%, London's FTSE 100 down 0.2%, Germany's DAX 40 down 0.6%, and France's CAC 40 down 0.4% [5] - Asian markets closed mostly lower, with Japan's Nikkei 225 down 0.10%, Hong Kong's Hang Seng down 0.71%, and China's Shanghai Composite down 0.46% [6] Company Earnings - Aramark (NYSE:ARMK) shares fell around 6% after reporting fourth-quarter earnings of 57 cents per share, missing the analyst consensus estimate of 65 cents per share, and quarterly sales of $5.048 billion, below the consensus estimate of $5.164 billion [2] Sector Performance - Communication services shares rose by 2.1% on Monday, while information technology stocks fell by 1.1% [1] Commodity Prices - Oil traded up 0.3% to $60.29, while gold traded down 0.3% at $4,083.20, silver up 0.1% to $50.700, and copper down 0.8% to $5.0235 [4] Notable Stock Movements - Kaixin Holdings (NASDAQ:KXIN) shares surged 104% to $0.6274, Autonomix Medical, Inc. (NASDAQ:AMIX) up 60% to $1.1602, and PACS Group, Inc. (NYSE:PACS) up 50% to $15.80 [8] - OneConstruction Group Limited (NASDAQ:ONEG) shares dropped 57% to $2.20, Taitron Components Incorporated (NASDAQ:TAIT) down 46% to $1.14, and Republic Power Group Limited (NASDAQ:RPGL) down 36% to $0.5399 [8] Economic Indicators - The NY Empire State Manufacturing Index rose to 18.70 points in November, compared to a reading of 10.70 points in October [9]