Overview

• Aramark Q4 revenue grows 14% yr/yr but misses analyst expectations

• Adjusted EPS for Q4 rises 6%, GAAP EPS falls 28% due to compensation and asset impairment

• Company repurchased over 4 mln shares, raised quarterly dividend by 14%

Outlook

• Aramark expects fiscal 2026 revenue between $19.55 bln and $19.95 bln

• Company anticipates fiscal 2026 adjusted EPS between $2.18 and $2.28

• Aramark aims to reduce leverage ratio to below 3x in fiscal 2026

Result Drivers

• NEW BUSINESS - Substantial new business and high retention levels drove Q4 revenue growth of 14%

• 53RD WEEK CONTRIBUTION - 53rd week added an estimated 7% to Q4 revenue

• SUPPLY CHAIN EFFICIENCIES - Profitability supported by supply chain efficiencies and productivity

Key Details

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 $46.00, about 17.3% above its November 14 closing price of $38.03

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw3hCD29a

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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.)