Caterer Aramark's Q4 revenue misses

Aramark

17/11/2025 11:43

Overview

Aramark 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 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 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/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$5 bln
$5.16 bln (10 Analysts)
Q4 EPS
$0.33
Q4 Operating income
$218 mln


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 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: ID:nBw3hCD29a

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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.)