Strong Results and Positive Developments Lifted Aramark (ARMK)

Core Insights - Artisan Partners' "Artisan Select Equity Fund" reported returns of 6.77%, 6.76%, and 6.80% for its Investor Class, Advisor Class, and Institutional Class respectively in Q2 2025, underperforming the S&P 500 Index which returned 10.94% [1] - Aramark (NYSE:ARMK) was highlighted as a key stock, with a one-month return of -1.76% and a 52-week loss of 0.80%, closing at $38.42 per share with a market capitalization of $10.099 billion as of September 26, 2025 [2] - Aramark's shares rose 22% in Q2 2025, driven by strong quarterly results and a favorable business outlook, with a year-to-date revenue growth of 9% and strong client retention [3] Company Performance - Aramark's revenue for the fiscal third quarter of 2025 reached $4.6 billion, reflecting a 6% growth, aided by favorable foreign exchange effects [4] - The company is one of the three largest contract caterers globally, benefiting from the trend of institutions outsourcing food service functions to scale operators [3] - Despite significant stock appreciation since purchase, the valuation is considered less compelling, although growth in value per share is expected to continue at an attractive rate [3] Investment Sentiment - Aramark was held by 30 hedge fund portfolios at the end of Q2 2025, an increase from 28 in the previous quarter, indicating growing interest among institutional investors [4] - While Aramark shows potential as an investment, there is a belief that certain AI stocks may offer greater upside potential with less downside risk [4]