Overview
Food services provider's Q1 revenue grew 6%, beating analyst expectations
Adjusted EPS for Q1 beat analyst expectations
Company repurchased $30 mln of stock and repriced $2.4 bln term loans
Outlook
Aramark expects fiscal 2026 revenue between $19.55 bln and $19.95 bln
Company anticipates adjusted EPS growth of 20% to 25% in fiscal 2026
Aramark aims to reduce leverage ratio to under 3x by end of fiscal 2026
Result Drivers
CALENDAR SHIFT IMPACT - Revenue, operating income, and EPS growth were reduced by a calendar shift from the 53rd week in fiscal 2025
BASE BUSINESS EXPANSION - Revenue growth driven by base business expansion and net new business
TECHNOLOGY AND EFFICIENCIES - Profitability benefited from higher revenue levels, supply chain efficiencies, and organizational cost discipline
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $4.80 bln | $4.74 bln (10 Analysts) |
Q1 Adjusted EPS | Beat | $0.51 | $0.50 (11 Analysts) |
Q1 EPS | $0.36 | ||
Q1 Dividend | $0.12 | ||
Q1 Operating income | $218 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy"
Wall Street's median 12-month price target for Aramark is $45.00, about 16% above its February 9 closing price of $38.80
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago
Press Release: ID:nBw8B7rTga
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)