Aramark (ARMK) Stock

Aramark (ARMK) is a Consumer Discretionary stock trading at $59.33 (as of 2026-08-20), with a market capitalization of $15.64B and a trailing P/E of 39.3. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Aramark provides food, facilities, and uniform services to customers including education, healthcare, business and industry, sports and leisure, and corrections, in the United States and internationally. It operates through segments covering food and support services (U.S. and international) and uniform and career apparel, offering managed dining, catering, retail and concessions, and facility operations and maintenance services.

Understand Aramark: how it makes money

Aramark provides food, facilities, and uniform and career apparel services to education, healthcare, business and industry, sports, leisure, and corrections clients, and it makes money through managed food and support services (including dining, catering, food service management, and retail food), non-clinical support services (such as patient food and nutrition, retail food, and procurement), plus uniform and career apparel revenue.

The profit model is contract-based and recurring, with results tied to how well Aramark retains clients (client retention rate) while also adding new business (annualized gross new business wins), alongside contribution from its uniform and career apparel revenue stream.

Revenue by segment (latest quarter)
Food US$2.9B
Food Intl$1.4B
Uniform$0.7B

Business quality (Weak): Good clarity on what Aramark sells and which operating metrics matter (client retention and new business wins). Segment revenue inputs are incomplete and may not reconcile tightly to the stated total revenue, so segment-level conclusions should be treated cautiously.

Valuation: At 41× earnings, ARMK trades 48% above the Restaurants, Hotels & Motels average (27×). Note: one-time items can distort reported P/E.

Bull case

  • High client retention rate: Aramark reports a client retention rate of 98.0 percent, supporting the idea of steady recurring contract demand.
  • Continued new business momentum: Annualized gross new business wins are reported at 1.2 USD_B, indicating ongoing wins to replace or expand within the client base.
  • Service and retail mix plus apparel revenue: Aramark combines managed services (dining, catering, food service management, and convenience-oriented retail services) with a separate Uniform and Career Apparel revenue stream (0.7 USD_B).

Bear case

  • Low operating margin: Operating margin is reported at 4.5 percent, which leaves less cushion if costs rise or demand weakens.
  • Growth depends on retaining and winning clients: The operational KPIs emphasize retention and new wins, so underperformance on these measures could affect results.
  • Exposure to disruptions and event-driven volumes: Aramark discloses measures such as K-12 service days lost due to weather closures (750 count) and large-scale fan or visitors served at major events, which can introduce variability.
Valuation — source: SEC EDGAR (first-party)
Price$59.33
Market Cap$15.64B
P/E Ratio39.3
EV / EBITDA10.8
Price / Book4.61
Price / Sales0.79
FCF Yield-17.4%
DCF Value (model)$40.49
DCF Upside vs Price-31.8%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$18.51B
Net Margin1.8%
Revenue Growth (YoY)9.3%
EPS Growth (YoY)37.0%
FCF Growth (YoY)-0.2%
Financial Health — source: SEC EDGAR
Altman Z-Score2.55 (grey)
Valuation vs Sector & Industry
Stock P/E39.3
Sector P/E (Consumer Discretionary)20.5
Industry P/E (Restaurants, Hotels & Motels)26.6
vs Sector92.0%
vs Industry48.0%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderJupiter Topco LLC ($1.04B)
Institutional Holders Tracked10
Congressional Trades (recent)7
Company
SectorConsumer Discretionary
IndustryRestaurants, Hotels & Motels
CEOJohn J. Zillmer
Employees266,680
CountryUS
IPO Date2013-12-12

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ARMK earnings history · ARMK institutional & insider holders · ARMK KPIs & operating metrics · ARMK financials · ARMK investor presentations & press releases · ARMK SEC filings · ARMK peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.