Aramark secures new university dining contracts

Published 03/06/2025, 12:22
Aramark secures new university dining contracts

PHILADELPHIA - Aramark (NYSE:ARMK), a global provider of food and facilities services with a market capitalization of $10.52 billion, has expanded its reach in the higher education sector with a series of new dining service contracts at six universities across the United States. The announcement made today highlights Aramark’s continued growth in the collegiate hospitality market, building on its impressive 26.61% stock return over the past year. According to InvestingPro data, the company maintains a strong financial health score, with seven analysts recently revising their earnings expectations upward for the upcoming period.

The company’s recent partnerships include agreements with Adams State University in Colorado, Alvernia University in Pennsylvania, Azusa Pacific University in California, Delaware Valley University in Pennsylvania, East Central University in Oklahoma, and the University of North Carolina at Pembroke. These contracts build on Aramark’s portfolio, which already includes services for more than 315 colleges and universities nationwide.

Each institution will witness a tailored approach to their dining services. Adams State University will introduce a variety of cuisines at its La Mesa dining area and a new mobile ordering concept, The Drop. Alvernia University plans to enhance its dining experience with a focus on service excellence and technology integration.

Azusa Pacific University aims to modernize its 1899 dining facility with global cuisines and allergen-friendly options, along with a virtual order and pickup system at the Cougars Den dining location. Delaware Valley University is set to revamp its entire dining experience, while East Central University will add new retail offerings, including popular franchises like Moe’s Southwest Grill and Einstein’s Bagel Bros.

At the University of North Carolina, Pembroke, Aramark will manage all on-campus dining, catering, and athletic concessions, aligning with the university’s commitment to quality, variety, and sustainability.

Jack Donovan, President and CEO of Aramark Collegiate Hospitality, expressed honor in being chosen as a trusted partner by such a diverse range of schools and emphasized the company’s dedication to evolving with the higher education industry.

These new contracts come on the heels of Aramark’s recent announcement of a partnership with Loyola Marymount University, further solidifying its position in the marketplace. The company’s extensive experience in the sector is expected to bring enhanced dining experiences and high-quality, student-centered services to each of these new clients. With annual revenues of $17.6 billion and a 4.53% revenue growth in the last twelve months, Aramark continues to demonstrate strong market presence. For deeper insights into Aramark’s financial performance and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks with expert analysis and actionable intelligence.

The information in this article is based on a press release statement from Aramark.

In other recent news, Aramark Holdings reported its second-quarter earnings for 2025, revealing an earnings per share (EPS) of $0.34, slightly surpassing the forecast of $0.33, though revenue fell short at $4.28 billion compared to the anticipated $4.36 billion. The company demonstrated a 3% year-over-year increase in organic revenue, reaching $4.3 billion, and a 9.5% rise in operating income to $174 million. Citi analysts responded to these results by raising their price target on Aramark shares from $45.00 to $46.50, maintaining a Buy rating, citing a margin improvement and significant gross contract wins amounting to $760 million. RBC Capital Markets also reaffirmed their positive stance on Aramark, maintaining an Outperform rating with a price target of $47.00, highlighting the company’s ability to sustain earnings growth and the promising prospects of its international expansion. These recent developments showcase the company’s strong performance in operating income and adjusted EPS, as well as continued expansion in sports and entertainment partnerships. Aramark’s strategic focus on enhancing its group purchasing organization capabilities and international growth is expected to drive sustained operating leverage. Analysts from RBC and Citi express confidence in Aramark’s ongoing financial health and its ability to deliver value to shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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