PHILADELPHIA - Aramark (ARMK), a leader in food, facilities, and uniform services with a market capitalization of $10.65 billion and annual revenue of $17.4 billion, has announced the expansion of its Board of Directors and the appointment of a new member, according to a recent SEC filing.
On Monday, the company, which has seen its stock surge 46.7% year-to-date, increased its board size to 11 directors and appointed Richard Dreiling, a seasoned executive with extensive leadership experience, as a director. According to InvestingPro analysis, Aramark maintains a GOOD financial health score, suggesting strong operational fundamentals.
Dreiling, 71, is set to serve on the board until a successor is elected and qualified. He will also join the Compensation and Human Resources and Nominating, Governance and Corporate Responsibility Committees. His nomination as a director will be up for shareholder vote at Aramark's 2025 annual meeting.
The retired Chairman and CEO of Dollar Tree, Inc. (NASDAQ:DLTR), Dreiling served in that role from February 2023 to November 2024 and was Executive Chairman from March 2022 to February 2023. His career includes notable positions such as Chairman of Dollar General Corporation (NYSE:DG) from 2015 to 2016 and CEO from 2008 to 2015. Dreiling's leadership experience extends to his time as President, CEO, and Chairman of Duane Reade Holdings, Inc., and executive roles at Longs Drug Stores Corp., Safeway, Inc., and Vons Co. Inc.
Dreiling's board experience is not limited to his new role at Aramark; he has also been a board member of Lowe’s Companies and previously served on Aramark's board from 2016 to 2022. Additionally, he has held board positions at Kellanova (formerly Kellogg Company (NYSE:K)) and PulteGroup (NYSE:PHM), Inc.
As part of his board membership, Dreiling will participate in Aramark's director compensation policies and programs, as described in the company's 2024 proxy statement. He will also enter into an indemnification agreement with Aramark in line with those signed by other directors.
In other recent news, ARAMARK Holdings (NYSE:ARMK) has been the subject of several analyst upgrades and target price revisions. Baird has increased its stock price target for ARAMARK to $45.00, up from $44.00, and maintained a neutral rating. This adjustment comes after ARAMARK's announcement of significant margin expansion and a 21% year-over-year increase in gross new sales, totaling $1.44 billion for fiscal year 2024. The company also reported revenue growth of 8.19% in the last twelve months.
Truist Securities has also maintained a buy rating on ARAMARK, raising its price target to $46.00. This decision follows ARAMARK's mixed financial performance in the fourth fiscal quarter and a forecast for fiscal year 2025 suggesting modest growth. The company reported a 10% year-over-year organic revenue growth, a 20% rise in adjusted operating income, and a 35% increase in adjusted EPS on a constant currency basis. Total (EPA:TTEF) revenue for the fiscal year reached $17.4 billion.
In addition, ARAMARK announced a new $500 million share repurchase program, indicating strong financial health. The company also secured $1.4 billion in new business and reported a 93.2% retention rate. For fiscal 2025, ARAMARK projects organic revenue growth of 7.5% to 9.5%, adjusted operating income growth of 15% to 18%, and adjusted EPS growth of 23% to 28%.
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