Aramark (ARMK)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Aramark (ARMK) trades at $55.98 with AI Score 57/100 (Grade B). Aramark provides a range of managed services, including food, facilities, and uniforms, to diverse clients across the United States and internationally. Market cap: $14.72B, Sector: Industrials.
Price live · AI analysis from May 10, 2026ARMK stock analysis for 2026: Analysts have set a consensus price target of $48.00 for Aramark, suggesting 14.3% downside from the current price of $55.98. The AI MoonshotScore is 57/100, indicating a neutral outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
ARMK: the 1 perspectives are evenly split.
How is this calculated? →Aramark (ARMK) Industrial Operations Profile
Aramark is a leading provider of food, facilities, and uniform services, serving education, healthcare, business, sports, and correctional clients globally. With a diversified service portfolio and a focus on long-term client relationships, Aramark navigates a competitive landscape within the specialty business services sector.
What Is the Investment Thesis for ARMK?
Aramark presents a compelling investment case based on its diversified service offerings and established market presence. With a market capitalization of $14.72B and a P/E ratio of 39.4, the company demonstrates financial stability. A key value driver is Aramark's ability to secure long-term contracts across various sectors, providing a recurring revenue stream. Growth catalysts include expanding its service offerings in high-growth markets and leveraging technology to improve operational efficiency. However, investors should be mindful of potential risks, such as economic downturns affecting client spending and increased competition within the managed services industry. The company's beta of 1.15 indicates moderate volatility relative to the market.
Based on FMP financials and quantitative analysis
ARMK Key Highlights
- Aramark operates in three segments: Food and Support Services United States, Food and Support Services International, and Uniform and Career Apparel, providing diversified revenue streams.
- The company serves a wide range of clients, including education, healthcare, business and industry, sports, leisure, and corrections, mitigating sector-specific risks.
- Aramark's dividend yield of 1.00% offers a steady income stream for investors.
- The company's beta of 1.15 indicates moderate volatility compared to the overall market.
- Aramark's gross margin is 7.0% and profit margin is 1.7%.
Who Are ARMK's Competitors?
ARMK is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| GNRC Generac Holdings Inc. | $259.53 | +2.72% | $15.28B | 62 |
| SWK Stanley Black & Decker, Inc. | $93.03 | +1.24% | $14.46B | 58 |
| FLS Flowserve Corporation | $74.19 | +2.55% | $9.48B | 67 |
| DRS Leonardo DRS, Inc. | $45.23 | +3.45% | $12.07B | 67 |
| DCI Donaldson Company, Inc. | $90.75 | +1.86% | $10.52B | 86 |
| FTBGF Bidstack Group Plc | $0.03 | +20.00% | $29.04M | 63 |
| BUUU BUUU Group Limited provides meeting, incentive, conference, and exhibition solutions, including event management and stage production services. The company | $21.35 | -2.06% | $249.69M | 63 |
| ZGM Zenta Group Company Limited | $1.99 | +11.80% | $23.50M | 60 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are ARMK's Key Strengths?
- Diversified service offerings across food, facilities, and uniforms.
- Established presence in multiple sectors, including education, healthcare, and business.
- Strong brand reputation and long-standing client relationships.
- Extensive geographic reach in the United States and internationally.
What Are ARMK's Weaknesses?
- Relatively low profit margin of 1.7%.
- Exposure to economic downturns affecting client spending.
- Dependence on long-term contracts, which can be subject to renegotiation.
- Potential for operational inefficiencies in managing diverse service offerings.
What Could Drive ARMK Stock Higher?
- Expansion of service offerings in the healthcare sector, driven by increasing demand for non-clinical support services.
- Implementation of technology-driven solutions to improve operational efficiency and customer experience.
- Potential acquisitions of smaller competitors to expand market share and service offerings (2027-2028).
- Focus on sustainability initiatives to attract environmentally conscious clients.
- Geographic expansion into emerging markets in Asia and Latin America (2027-2030).
What Are the Key Risks for ARMK?
- Rich valuation — a P/E of 39.4 runs well above the Industrials sector’s ~30x, leaving little room for a miss.
- Economic downturns reducing client spending on non-essential services.
- Increased competition from other managed service providers.
- Changes in government regulations affecting food safety and labor practices.
- Disruptions in supply chains affecting the availability and cost of goods.
- Labor shortages and wage inflation impacting operating costs.
What Are the Growth Opportunities for ARMK?
- Expansion in Healthcare Sector: Aramark can capitalize on the growing demand for non-clinical support services in the healthcare sector. As healthcare providers focus on patient care, outsourcing services like patient food and nutrition, retail food, and procurement become increasingly attractive. The global healthcare support services market is projected to reach $400 billion by 2028, offering significant growth potential for Aramark. Timeline: Ongoing.
- Technology Integration: Investing in technology to enhance operational efficiency and improve service delivery is a key growth opportunity. Implementing AI-powered solutions for food waste reduction, predictive maintenance for facilities, and data analytics for customer insights can drive cost savings and improve customer satisfaction. The market for AI in the food and beverage industry is expected to reach $20 billion by 2027. Timeline: Ongoing.
- Geographic Expansion: Expanding its presence in emerging markets, particularly in Asia and Latin America, can drive significant growth for Aramark. These regions offer favorable demographics, increasing urbanization, and growing demand for managed services. The Asia-Pacific managed services market is projected to grow at a CAGR of 12% over the next five years. Timeline: Upcoming: 2027-2030.
- Sustainability Initiatives: Implementing sustainable practices and offering eco-friendly solutions can attract environmentally conscious clients and enhance Aramark's brand reputation. Offering services like waste management, energy efficiency, and sustainable sourcing can differentiate Aramark from competitors. The market for sustainable food and beverage is projected to reach $200 billion by 2027. Timeline: Ongoing.
- Uniform and Career Apparel Innovation: Focusing on innovative designs, materials, and technologies in its Uniform and Career Apparel segment can drive growth and increase market share. Offering features like antimicrobial fabrics, enhanced durability, and smart uniforms with integrated sensors can appeal to a wide range of industries. The global workwear market is projected to reach $40 billion by 2028. Timeline: Upcoming: 2027-2029.
What Opportunities Does ARMK Have?
- Expansion in high-growth markets, such as healthcare and emerging economies.
- Leveraging technology to improve operational efficiency and service delivery.
- Implementing sustainable practices to attract environmentally conscious clients.
- Acquiring smaller competitors to expand market share and service offerings.
What Threats Does ARMK Face?
- Increased competition from other managed service providers.
- Changes in government regulations affecting food safety and labor practices.
- Economic downturns reducing client spending on non-essential services.
- Disruptions in supply chains affecting the availability and cost of goods.
What Are ARMK's Competitive Advantages?
- Established brand reputation and long-standing client relationships.
- Diversified service offerings across multiple sectors.
- Extensive geographic reach in the United States and internationally.
- Economies of scale in procurement and operations.
What Does ARMK Do?
Aramark, founded in 1959 and headquartered in Philadelphia, Pennsylvania, has evolved into a global leader in providing managed services. Originally focused on vending and food services, the company expanded its offerings to include facilities management and uniform services. Today, Aramark operates through three primary segments: Food and Support Services United States, Food and Support Services International, and Uniform and Career Apparel. The Food and Support Services segments deliver a range of solutions, including dining, catering, food service management, and retail services. Non-clinical support services, such as patient food and nutrition, plant operations, and custodial services, are also key offerings. Aramark's Uniform and Career Apparel segment provides design, sourcing, manufacturing, and maintenance services for uniforms and related items. The company serves a diverse clientele, including education, healthcare, business and industry, sports, leisure, and correctional facilities, both in the United States and internationally. Aramark's commitment to quality, innovation, and client satisfaction has solidified its position in the competitive managed services market.
What Products and Services Does ARMK Offer?
- Provides food and beverage services to educational institutions.
- Offers facility management services, including plant operations and maintenance.
- Supplies uniforms and career apparel to various industries.
- Manages dining and catering services for businesses and industries.
- Provides food services to healthcare facilities, including patient nutrition.
- Offers retail services and merchandise sales at recreational facilities.
- Provides food and operational services to correctional facilities.
How Does ARMK Make Money?
- Generates revenue through long-term contracts with clients for managed services.
- Operates through three segments: Food and Support Services United States, Food and Support Services International, and Uniform and Career Apparel.
- Derives income from providing food, facilities, and uniform services to diverse clients.
- Achieves profitability through efficient operations and cost management.
What Industry Does ARMK Operate In?
Aramark operates within the specialty business services industry, which is characterized by increasing demand for outsourcing and managed services. The market is driven by organizations seeking to improve efficiency, reduce costs, and focus on core competencies. The competitive landscape includes companies like Generac Holdings Inc. (GNRC), Stanley Black & Decker, Inc. (SWK), and Flowserve Corporation (FLS), each offering specialized services. Aramark differentiates itself through its comprehensive service portfolio and its ability to serve diverse client segments. The industry is expected to grow steadily, driven by trends such as increasing urbanization, aging populations, and technological advancements.
Who Are ARMK's Key Customers?
- Educational institutions (schools, colleges, universities)
- Healthcare facilities (hospitals, clinics, nursing homes)
- Businesses and industries (corporations, manufacturing plants)
- Sports, leisure, and recreational facilities (stadiums, arenas, parks)
- Correctional facilities (prisons, detention centers)
FY2026 estForward Outlook
Wall Street analysts project Aramark revenue of about $19.96B for fiscal 2026, with EPS near $2.25. The estimate reflects 12 contributing analysts.
ARMK Valuation & Market Position
With a $14.72B market cap, Aramark sits in the large-cap segment of the market. Relative to its peer group, ARMK's quantitative score of 57/100 is below the peer average of 68/100.
ROE 11%Key Financial Metrics
Return on equity for Aramark stands at 11.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.6%, showing how much profit it generates from its asset base. ARMK trades at a trailing price-to-earnings ratio of 39.36, above the Industrials sector average of ~30x. Its free cash flow yield is 4.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.21 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 2.5%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 8/9Financial Health
Aramark's Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 2.56 places it in the grey zone, a middle ground that warrants monitoring.
Company Profile
Aramark operates in the Specialty Business Services industry within the Industrials sector. It is headquartered in Philadelphia, US. The company is led by CEO John J. Zillmer. ARMK has traded publicly since 2013.
ARMK Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Aramark's consistent contract renewals signal strong client satisfaction and reliable revenue streams, suggesting a solid foundation for future growth. Think of it like Waste Management – essential services tend to stick around.
- Positive buzz in the social trading community highlights Aramark's potential to capitalize on the return to in-person events and workplace dining. It's similar to how Live Nation rebounded post-pandemic.
- Insider buying activity, even if small, can often reflect management's confidence in the company's long-term prospects. It's a subtle signal, but worth noting.
- Increased mentions in positive contexts within the community suggest a growing belief in Aramark's ability to adapt to changing consumer preferences and market demands.
Bear Case
- Concerns linger about Aramark's ability to fully recover to pre-pandemic levels, especially if remote work trends persist. It's a similar headwind faced by commercial real estate companies.
- Negative sentiment in some corners of the social trading community suggests skepticism about Aramark's long-term growth potential in a competitive market.
- Recent market volatility and economic uncertainty could impact Aramark's business, as clients may cut back on non-essential services. It's the same caution that surrounds discretionary spending during recessions.
- Mixed community signals suggest a lack of clear conviction in Aramark's future performance, potentially leading to limited investor enthusiasm. This uncertainty can mirror the cautious sentiment seen around companies undergoing significant restructuring.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
ARMK Latest News
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Aramark's Data Center Opportunity Could be Larger than Expected, Oppenheimer Says
MT Newswires · Jun 11, 2026
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Oppenheimer Adjusts Aramark Price Target to $60 From $50, Maintains Outperform Rating
MT Newswires · Jun 11, 2026
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Oppenheimer Maintains Outperform on Aramark, Raises Price Target to $60
benzinga · Jun 11, 2026
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Cintas Stock Bears Are Overlooking This Profit Engine
Yahoo! Finance: ARMK News · Jun 10, 2026
ARMK Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for ARMK.
Price Targets
Consensus target: $48.00
ARMK MoonshotScore
What does this score mean?
The MoonshotScore rates ARMK's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Classification
Industry Specialty Business ServicesLatest News
Aramark's Data Center Opportunity Could be Larger than Expected, Oppenheimer Says
Oppenheimer Adjusts Aramark Price Target to $60 From $50, Maintains Outperform Rating
Oppenheimer Maintains Outperform on Aramark, Raises Price Target to $60
Cintas Stock Bears Are Overlooking This Profit Engine
Leadership: John J. Zillmer
Chief Executive Officer
John J. Zillmer has served as the Chief Executive Officer of Aramark since January 2019. Prior to joining Aramark, Zillmer served as Chairman and CEO of Univar Corporation. He also held various leadership positions at Allied Waste Industries and Waste Management. Zillmer holds a Bachelor of Science degree from Miami University and an MBA from Northwestern University's Kellogg School of Management. His extensive experience in the service and waste management industries provides a strong foundation for leading Aramark.
Track Record: Under Zillmer's leadership, Aramark has focused on enhancing its service offerings, improving operational efficiency, and expanding its presence in key markets. He has overseen the implementation of technology-driven solutions to improve customer experience and drive cost savings. Zillmer has also emphasized sustainability initiatives and corporate social responsibility, aligning Aramark's business practices with environmental and social goals.
What Investors Ask About Aramark (ARMK) — Industrials
What does Aramark do?
Aramark is a global provider of food, facilities, and uniform services. The company operates through three segments: Food and Support Services United States, Food and Support Services International, and Uniform and Career Apparel. Aramark serves a diverse range of clients, including educational institutions, healthcare facilities, businesses, sports venues, and correctional facilities. Its services include dining, catering, facility management, and uniform rental and maintenance. Aramark focuses on delivering high-quality services and building long-term relationships with its clients.
What do analysts say about ARMK stock?
Analyst consensus on Aramark (ARMK) is mixed, with opinions varying based on the company's growth prospects and financial performance. Key valuation metrics include the company's P/E ratio of 39.4 and its dividend yield of 1.00%. Growth considerations center on Aramark's ability to expand its service offerings, improve operational efficiency, and capitalize on opportunities in high-growth markets. Investors should conduct their own due diligence and consider their individual investment objectives before making any decisions regarding ARMK stock.
What are the main risks for ARMK?
Aramark faces several risks inherent to its business model and the industries it serves. Economic downturns can reduce client spending on non-essential services, impacting revenue. Increased competition from other managed service providers can put pressure on pricing and margins. Changes in government regulations related to food safety, labor practices, and environmental standards can increase compliance costs. Disruptions in supply chains can affect the availability and cost of goods. Labor shortages and wage inflation can also impact operating costs.
What are the key factors to evaluate for ARMK?
Aramark (ARMK) holds an AI score of 57/100 (moderate). P/E: 39.4x vs the S&P 500's ~20-25x. Analysts target $48.00 (-14%). Not financial advice.
How frequently does ARMK data refresh on this page?
ARMK prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven ARMK's recent stock price performance?
Aramark (ARMK) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Diversified service offerings across food, facilities, and uniforms. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider ARMK overvalued or undervalued right now?
Aramark (ARMK) trades at 39.4x earnings. Analysts target $48.00 (-14%) — downside risk seen. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying ARMK?
Before investing in Aramark (ARMK), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- The information provided is based on available data and should not be considered investment advice.
- Market conditions and company performance are subject to change.