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what it is
Aramark feeds crowds and runs buildings for hospitals, schools, prisons, campuses, and stadiums.
how it gets paid
Last year Aramark made $18.5B in revenue. Food and support services was the main engine at $11.6B, or 63% of sales.
why it's growing
Revenue grew 6.4% last year to ~$18.5B FY. The ~$4.8B print is a cited quarter (~+6% vs. prior year there), not annual sales.
what just happened
Revenue hit $4.8B while EPS was $0.36.
At a glance
B+ balance sheet — decent shape, but not bulletproof
15/100 earnings predictability — expect surprises
31.4x trailing p/e — you're paying up for this one
1.4% dividend yield — cash in your pocket every quarter
9.0% return on capital — nothing to write home about
xvary composite: 55/100 — below average
What they do
Aramark feeds crowds and runs buildings for hospitals, schools, prisons, campuses, and stadiums.
Aramark kept over 96% of customers. That means your client base stays put. So what: leaving is painful when one vendor handles food, cleanup, and staffing for 278,000 employees across 19 countries.
How they make money
$18.5B
annual revenue · their business grew +6.4% last year
Food and support services
$11.6B
Facilities management
$4.0B
Concessions and venue services
$2.9B
The products that matter
u.s. foodservice and facilities
Food and Support Services U.S.
$11.6B food & support · 63% (segment map)
This matches the largest revenue row below. Filings may also show a ~$14.8B U.S. geographic cut—different slice than these three segment lines, not a second total.
core segment
uniform rental and cleaning
Uniform Services
not separately broken out here
the page does not give you a standalone revenue figure for uniforms. that matters because it tells you the stock is still judged on the broader $18.5B service platform, not on one faster-growing niche.
recurring service
international contract services
International & Other
~$6.9B other segments · 37% combined
Facilities management (~$4.0B) plus concessions (~$2.9B) from the map are the non-core-food lines; international mix still sits mostly inside how those contracts report.
secondary driver
Key numbers
$18.5B
annual revenue
This is the size of the machine. It tells you Aramark is not a niche caterer; it is a huge contract business.
8.5%
operating margin
For every $100 of sales, Aramark keeps $8.50 before interest and taxes. Small cost swings matter.
35%
debt ratio
Debt is down from 77% in 2020, but 35% of capital still leaves less room for bad quarters.
96%
customer retention
Keeping 96% of customers is the quiet reason this business does not fall apart when the economy gets messy.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 85 / 100
- long-term debt $5.4B (35% of capital)
- net profit margin 3.9% — keeps 4 cents of every dollar in revenue
- return on equity 18% — $0.18 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in ARMK 3 years ago → it's now worth $12,450.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
Revenue hit $4.8B while EPS was $0.36.
Revenue rose 6% vs. prior year. EPS fell 8% vs. prior year, which says the top line is still moving while profits are under pressure.
$4.8B
quarter revenue
$0.36
eps
6.0%
revenue growth
the number that mattered
The key number was $4.8B of revenue. It grew 6% while EPS slipped 8%, so the business is still expanding, not shrinking.
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retention rates have also been very strong lately as aramark has kept over 96% of its customers, indicating that quality levels remain high. The momentum is good in all parts of the business.in the collegiate hospitality business, the company is benefiting from higher student enrollments, particularly in the south and southeast. and it is seeing success at crossing over its academic food service into collegiate sports, which is experiencing double-digit revenue growth. in corrections, aramark is capitalizing on the growing trend for these institutions to outsource their food preparation service. the overseas business is also doing well, as the company has strengthened its presence with several european sports leagues. considering all of these factors, we look for the company to post profits of $2.25 a share this fiscal year and $2.60 in fiscal 2027. (we note that beginning in fiscal 2026, we are using adjusted earnings and we are not restating prior years. on a comparable basis, the company earned $1.82 in fiscal 2025.) finances are in reasonably good shape.
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long-term debt got as high as 77% of total capitalization in 2020.
-
but over the past several years, management has whittled away at its total obligations and we expect the debt ratio to decline to less than 60% by the end of this fiscal year.the company has no significant debt maturities for the next two years, and it has over $600 million in cash on hand. These neutrally ranked shares have good long-term appeal. over the next 3 to 5 years, we look for the stock to break out of its years-long trading range as the company establishes a more consistent pattern of earnings growth.
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stuart j.
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benway, cfa february 13, 2026
source: company earnings report, 2026
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What could go wrong
the #1 risk is wage inflation across a 270,000-person labor base. that is the risk most likely to hit your thesis first, because this business does not have much margin to absorb it.
high
labor cost inflation
with 270,000 employees, even modest wage pressure can show up fast. this is what a 1.69–3.4% margin business looks like in real life.
a small labor-cost move can eat a large share of profit when the company only keeps a few cents per revenue dollar
med
contract retention in institutional accounts
schools, hospitals, stadiums, and workplaces tend to stay until service slips or a rival underbids. when 80% of shown revenue sits in one U.S. segment, a few large contract losses are not background noise.
the $14.8B U.S. segment is 80% of the revenue shown on this page
med
debt and refinancing pressure
$6.2B of total debt is manageable when operations stay steady. it matters more when earnings predictability is only 15/100 and the business already runs with a thin profit buffer.
debt equals 191.5% of equity
these risks all hit the same weak spot: a company producing $18.5B of revenue but keeping only a sliver of it. if costs rise, contracts slip, or debt gets more expensive, the earnings effect is immediate.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
Q2 FY2026 earnings
next report expected may 2026. you are looking for margin follow-through, not another one-cent technical win.
metric
U.S. segment growth
the core $14.8B U.S. business is 80% of the story. if the recent 6.4% growth rate fades, the whole thesis loses altitude.
risk
labor-cost pressure
with 270,000 employees, wage inflation is not a line item. it is the line item.
trend
debt versus profit buffer
watch the $6.2B debt load alongside the 1.69% trailing profit margin. those two numbers together tell you how forgiving the next quarter will be.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, the market sees no clean near-term edge.
risk profile
average
stability score 3. you are not buying a distressed mess, but you are not buying a fortress either.
chart momentum
average
technical score 3. the chart is acting like a stock stuck between stabilization and re-rating.
earnings predictability
15 / 100
low predictability means you should treat smooth earnings assumptions with caution.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 186 buyers vs. 162 sellers in 3q2025. total institutional holdings: 0.3B shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$32
$64
$38
current price
$48
target midpoint · +25% from current · 3-5yr high: $70 (+85% · 17% ann'l return)
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