Overview

* Aramark ( ARMK ) Q4 revenue grows 14% yr/yr but misses analyst expectations

* Adjusted EPS for Q4 rises 6%, GAAP EPS falls 28% due to compensation and asset impairment

* Company repurchased over 4 mln shares, raised quarterly dividend by 14%

Outlook

* Aramark ( ARMK ) expects fiscal 2026 revenue between $19.55 bln and $19.95 bln

* Company anticipates fiscal 2026 adjusted EPS between $2.18 and $2.28

* Aramark ( ARMK ) aims to reduce leverage ratio to below 3x in fiscal 2026

Result Drivers

* NEW BUSINESS - Substantial new business and high retention levels drove Q4 revenue growth of 14%

* 53RD WEEK CONTRIBUTION - 53rd week added an estimated 7% to Q4 revenue

* SUPPLY CHAIN EFFICIENCIES - Profitability supported by supply chain efficiencies and productivity

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Miss $5 bln $5.16

Revenue bln (10

Analysts

)

Q4 EPS $0.33

Q4 $218 mln

Operatin

g income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the restaurants & bars peer group is "buy"

* Wall Street's median 12-month price target for Aramark ( ARMK ) is $46.00, about 17.3% above its November 14 closing price of $38.03

* The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)