Update shared on 19 Nov 2025
Fair value Decreased 1.48%Aramark's analyst price target has been revised downward from $45.10 to $44.43, as analysts factor in strong underlying business momentum while adjusting for delays in revenue and earnings due to client-driven timing in new contract starts.
Analyst Commentary
Analyst perspectives on Aramark reflect a mix of optimism about core business trends and caution around near-term uncertainty driven by client timing. The following summarizes key bullish and bearish takeaways from the latest Street research:
Bullish Takeaways- Bullish analysts highlight that underlying business momentum remains strong, which supports confidence in Aramark's long-term growth outlook.
- There is continued emphasis on the company's ability to secure new contracts across major verticals, positioning Aramark for future revenue expansion.
- Valuation continues to be supported by expectations of margin normalization once the effects of delayed contract revenue begin to unwind in future periods.
- Some caution stems from recent delays in revenue recognition, with earnings and sales now expected to shift further out and impact near-term performance and visibility.
- Analysts point to execution risk related to the pace at which new contract starts ramp up across key divisions, including Corrections, Workplace Experience, and Healthcare.
- Current margin pressures are a watchpoint, as the company works through the volatility in revenue patterns triggered by timing issues, which may restrict upside in the short term.
What's in the News
- Aramark SeniorLife+ launched a new Consultative Services program, empowering senior living communities to access Aramark's expertise in supply chain, dining, and facilities management while retaining their own staffing and operations. The initiative leverages AI technology through the Hospitality IQ platform to streamline facility management and enhance resident satisfaction. (Key Developments)
- The company provided earnings guidance for fiscal 2026, projecting revenue between $19,550 million and $19,950 million, including an approximate $100 million boost from favorable foreign currency translation. (Key Developments)
- Aramark's Board of Directors approved a 14% increase to its quarterly dividend, with the new rate of $0.12 per share payable on December 17, 2025. (Key Developments)
- The IN2WORK program, aiding formerly incarcerated individuals in workforce reentry, introduced a culinary certification track and a new support website, furthering post-release education and employment outcomes. (Key Developments)
- Aramark is rolling out innovative AI-powered solutions across its hospitality operations, such as the Culinary Co-Pilot tool within its Hospitality IQ platform, which optimizes menu planning and operational efficiency. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has decreased slightly from $45.10 to $44.43.
- Discount Rate has decreased from 10.28% to 9.81%.
- Revenue Growth projection has fallen from 7.08% to 6.08%.
- Net Profit Margin estimate has edged down from 3.17% to 3.12%.
- Future P/E ratio has declined modestly from 22.52x to 21.91x.
Disclaimer
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