Aramark stock hits 52-week high at $42.50

Published 01/07/2025, 14:50
Aramark stock hits 52-week high at $42.50

Aramark Holdings (NYSE:ARMK)’ stock reached a 52-week high of $42.50, marking a significant milestone for the $11.12 billion food service and facilities management company. According to InvestingPro analysis, the stock is currently trading at Fair Value, with a notably high P/E ratio of 31.7x. This achievement reflects a robust 27.48% increase over the past year, showcasing strong investor confidence and steady growth in the company’s performance. With annual revenue of $17.62 billion and a 12-year track record of consistent dividend payments, the stock’s rise to this peak underscores Aramark’s resilience and ability to navigate market challenges effectively, positioning it favorably in the current economic landscape. InvestingPro subscribers have access to 8 additional key insights about Aramark’s financial health and growth prospects.

In other recent news, Aramark Holdings reported its second-quarter earnings for 2025, with an earnings per share (EPS) of $0.34, slightly exceeding the forecast of $0.33. However, the company’s revenue of $4.28 billion fell short of expectations, which were set at $4.36 billion. Despite the revenue miss, Aramark demonstrated a 3% year-over-year increase in organic revenue to $4.3 billion and a 9.5% rise in operating income. In a strategic move, Aramark secured new dining service contracts with six universities across the United States, further expanding its presence in the collegiate hospitality market. Analyst firms RBC Capital and Citi have shown confidence in Aramark’s financial health, with RBC Capital maintaining an Outperform rating and a $47 target price, while Citi raised its price target to $46.50 and maintained a Buy rating. These analyst perspectives highlight Aramark’s strong retention rates and promising international expansion prospects. The company’s recent financial developments and strategic initiatives are expected to support continued growth and operational efficiency.

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