Aramark raises full-year organic revenue growth outlook to 9%-10% from 7%-9%
Company reaffirms full-year AOI growth outlook of 12%-17% and adjusted EPS growth of 20%-25%
Aramark expects leverage ratio to remain below 3x by end of fiscal 2026
Overview
U.S. food and facilities manager's fiscal Q3 revenue rose 9%, beating analyst expectations
Adjusted EPS for fiscal Q3 climbed 29%, beating analyst expectations
Company raised full-year organic revenue growth outlook after strong new business wins
Result drivers
New business momentum - Co said broad-based net new business and base business momentum across sectors and geographies drove revenue growth
Client wins and retention - New client wins and industry-leading client retention at approximately 98% contributed to results
Cost management and supply chain - Profitability growth led by strong revenue, supply chain efficiencies, and productivity gains from effective cost management
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "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 $63.00, about 13.1% above its August 10 closing price of $55.71
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 19 three months ago
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