3 Compelling Reasons to Keep Aramark Stock on Your Radar

Industry Overview - The US hospitality industry is estimated to grow from $247 billion at the start of 2025 to nearly$ 314 billion in the next five years [1] Company Overview - Aramark is a major player in the food and facilities services sector, serving education, healthcare, business, government, and sports industries [1] - The company's stock price is $36.85 with a 52-week range of$ 28.30 to $42.49, a P/E ratio of 37.22, and a dividend yield of 1.14% [3] - Analysts have set a consensus price target of$ 42.59, representing a 16% upside potential [5] Financial Performance - Aramark's stock surged 26.6% over the past year, consistently reaching new all-time highs [4] - In Q4 fiscal 2024, the company reported adjusted EPS of $0.54, beating analyst predictions, with revenue growing 5% YoY and international sales growing 9% [12] - The company expects organic revenue growth of 7.5% to 9.5% and adjusted EPS gains of 23% to 28% in fiscal 2025 [13] Strategic Initiatives - Aramark acquired Avendra in 2017 for over$ 1 billion, which managed $5 billion in annual purchases and improved supply chain efficiency [6] - The company launched Avendra International in September 2024, expected to utilize$ 20 billion in procurement power across 15 countries [7] - Avendra International acquired Quantum Cost Consultancy Group in December 2024, which has a $500 million customer spend in European and Caribbean markets [9] Shareholder Returns - Aramark increased its quarterly dividend from$ 0.095 to $0.105 and launched a$ 500 million share repurchase program [14] Analyst Sentiment - Nine out of 11 analysts rate Aramark as a Buy, with a Moderate Buy overall rating [5][12] - The company has a 15.6% upside potential based on analyst projections [12]