# Aramark Holdings (ARMK.US)

Canonical: https://gigainvestors.com/s/ARMK

Analysis as of: 2026-10-16T07:26:35.371Z. Financial observations: FY2011–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $55.04 per share; close as of 2026-10-15.

Estimated value: low $15.34 per share, central $17.40 per share, high $20.14 per share. Buy at or below the central value $17.40 per share. Valuation as of 2026-10-16T07:26:35.371Z; scenarios are not confidence intervals.

Expected annual return: 5.1% at the stated quote. About 5.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 2

- Operating margin variation: 0.62×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.05×

- FY2018: 0.05×

- FY2019: 0.05×

- FY2020: -0.02×

- FY2021: 0.02×

- FY2022: 0.03×

- FY2023: 0.04×

- FY2024: 0.04×

- FY2025: 0.04×

- LTM to Jun 2026: 0.04×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 16.4%

- ROIC, second-lowest year: 3.3%

- Typical minus recent gross margin: 2.8 pp

- Typical gross margin (annual median): 8.6%

- Recent gross margin (lower of latest and 3-year median): 5.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.9%

- ROIC including acquisitions, ten-year median: 4.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 18.8%

- FY2017: 20.8%

- FY2018: 18.4%

- FY2019: 17.0%

- FY2020: -4.6%

- FY2021: 3.3%

- FY2022: 6.9%

- FY2023: 12.4%

- FY2024: 15.8%

- FY2025: 17.9%

### economics: pass

- Owner earnings / net income, 5-yr: 1.14×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.1B

- Net income, five-year total: $1.8B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.2 pp

- Working capital / revenue, change between three-year averages: -1.3 pp

- Working capital / revenue, final three-year average: 7.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.86×

- FY2023: 1.00×

- FY2024: 1.03×

- FY2025: 1.03×

- LTM to Jun 2026: 1.20×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 18.8% vs 15.8%

- Per-share earnings: 0.84 to 1.22 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -2.4%

- Ordinary dilution, 5-year annual growth: -5.2%

- Market cap gain: -$3.7B

- Cumulative retained earnings: $206M

- Diluted shares, 10-year annual growth: -2.4%

- Diluted shares, 5-year annual growth: -5.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 4.9%

- Per-share value change: $0.39

- Per-share value, starting three-year median: $0.84

- Per-share value, ending three-year median: $1.22

- Buybacks concentrated in cheaper years (correlation): 0.60

- Average buyback yield: 0.5%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: $2.6B

- Cumulative net income, 10 years: $2.6B

- ROIC, first three-year median: 18.8%

- ROIC, last three-year median: 15.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.84

- FY2017: $1.07

- FY2018: $1.62

- FY2019: $1.29

- FY2020: -$1.32

- FY2021: -$0.36

- FY2022: $0.75

- FY2023: $2.57

- FY2024: $0.99

- FY2025: $1.22

### accounting: pass

- Sloan accruals: -4.5%

- Receivables to sales index (DSRI): 1.00×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 6.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.82×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 2.14×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.9%

- FY2017: -6.2%

- FY2018: -3.5%

- FY2019: -3.9%

- FY2020: -4.1%

- FY2021: -5.2%

- FY2022: -3.3%

- FY2023: -0.5%

- FY2024: -3.7%

- FY2025: -4.5%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 15.7% a year for ten years · sales +7.2%

Story as of 2026-10-16T09:58:19.602Z; price observation 2026-10-15.

Price needs cash profits to grow 15.7% a year for ten years

- 2025-11-17: Aramark Gives Weak Full-Year Earnings Outlook as Fourth-Quarter Results Trail Views ([finance.yahoo.com](https://finance.yahoo.com/news/aramark-gives-weak-full-earnings-161918886.html))

- 2026-05-13: Aramark Q2 Organic Revenue Beat Drives Higher Growth Outlook, Morgan Stanley Says ([finance.yahoo.com](https://finance.yahoo.com/news/aramark-q2-organic-revenue-beat-145713149.html))

### Sales · FY2025–2026

sales +7.2%; source https://www.sec.gov/Archives/edgar/data/1584509/000158450925000219/cik0-20251003.htm; observed 2025-11-25.

- FY2017: $15B 

- FY2018: $16B 

- FY2019: $16B 

- FY2020: $13B 

- FY2021: $12B 

- FY2022: $14B 

- FY2023: $16B 

- FY2024: $17B 

- FY2025: $19B 

- FY2026: $20B 

### Gross margin · FY2025

gross margin 5.8%; source https://www.sec.gov/Archives/edgar/data/1584509/000158450925000219/cik0-20251003.htm; observed 2025-11-25.

- FY2016: 10.6% 

- FY2017: 11.0% 

- FY2018: 11.3% 

- FY2019: 10.4% 

- FY2020: 6.5% 

- FY2021: 9.0% 

- FY2022: 7.8% 

- FY2023: 8.1% 

- FY2024: 8.2% 

- FY2025: 5.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty business services; annual sales are USD 18.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2025: revenue 18506299000; grossProfit 1070285000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ARMK.US: Aramark provides food and facilities services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally. The company operates in two segments, Food and Support Services United States, and Food and Support Services International. It offers food-related managed services, including dining, catering, food service management, and convenience-oriented retail services; non-clinical food and food-related support services, such as patient food and nutrition, retail food, environmental services, and procurement services; and plant operations and maintenance, custodial/housekeeping, energy management, grounds keeping, and capital project management services. The company also provides on-site restaurants, catering, convenience stores, and executive dining services; beverage and vending services; and facility management services comprising landscaping, transportation, capital program management, payment services, and other facility consulting services relating to building operations. In addition, it offers concessions, banquet, and catering services; retail services and merchandise sale, recreational, and lodging services; and facility management services at sports, entertainment, and recreational facilities. Further, the company offers correctional food; and operates commissaries, laundry facilities, and property rooms. The company was formerly known as ARAMARK Holdings Corporation. Aramark was founded in 1959 and is based in Philadelphia, Pennsylvania.

### Why customers stay

Margins ranged from 5.8% to 8.2% during 2023–25; it earns 16.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2023: grossProfit / revenue = 8.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2024: grossProfit / revenue = 8.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2025: grossProfit / revenue = 5.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); 10-year return on capital observations [[2016,0.1883991095610674],[2017,0.20774674111943875],[2018,0.18399738845926517],[2019,0.1696057645151661],[2020,-0.04574685586831719],[2021,0.03333563886778421],[2022,0.06864524382079798],[2023,0.12404304346236442],[2024,0.15780504473294976],[2025,0.17915496138694514]]; median 0.16370540462405792. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 8% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1584509/000158450925000219/cik0-20251003.htm (filed 2025-11-25); Gross margin observations: [[2021,0.09002051510565713],[2022,0.07830064565838518],[2023,0.0813611112009218]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 140.2 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2016: growth capex 0; upkeep 485708000; owner earnings 297863000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2017: growth capex 13072159.337570548; upkeep 520750840.66242945; owner earnings 361384159.33757055. Growth capex / owner earnings = 0.036172474636221634.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2018: growth capex 21931000; upkeep 596182000; owner earnings 567885000. Growth capex / owner earnings = 0.038618734426864594.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2019: growth capex 0; upkeep 485219000; owner earnings 555903000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2021: growth capex 0; upkeep 375344000; owner earnings 84515000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2022: growth capex 0; upkeep 364755000; owner earnings 362056000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2023: growth capex 22309000; upkeep 409857000; owner earnings 674108000. Growth capex / owner earnings = 0.03309410361544441.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2024: growth capex 0; upkeep 427425000; owner earnings 270644000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2025: growth capex 0; upkeep 466573000; owner earnings 336166000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); Dividend observations: [[2016,92074000],[2017,100813000],[2018,103115000],[2019,108439000],[2020,110893000],[2021,112010000],[2022,113120000],[2023,114614000],[2024,99901000],[2025,110821000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2025: cash repurchases 140156000 USD.

### Are managers owners

Insiders own 0.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ARMK.US SharesStats.PercentInsiders = 0.655 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 15.7% yearly over ten years; actual growth was 6.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); Ten-year compound average after fade. Initial solved rate 0.2140628904718399. Price 55.04; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.6872023317737194 → FY2025 1.2574051146628564. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $37.23 per share

- 2016-11: $34.41 per share

- 2016-12: $35.72 per share

- 2017-01: $33.84 per share

- 2017-02: $35.74 per share

- 2017-03: $36.87 per share

- 2017-04: $36.52 per share

- 2017-05: $37.26 per share

- 2017-06: $40.98 per share

- 2017-07: $39.86 per share

- 2017-08: $40.69 per share

- 2017-09: $40.61 per share

- 2017-10: $43.69 per share

- 2017-11: $42.60 per share

- 2017-12: $42.74 per share

- 2018-01: $45.81 per share

- 2018-02: $41.71 per share

- 2018-03: $39.56 per share

- 2018-04: $37.39 per share

- 2018-05: $38.82 per share

- 2018-06: $37.10 per share

- 2018-07: $40.21 per share

- 2018-08: $41.08 per share

- 2018-09: $43.02 per share

- 2018-10: $35.92 per share

- 2018-11: $38.06 per share

- 2018-12: $28.97 per share

- 2019-01: $32.95 per share

- 2019-02: $30.30 per share

- 2019-03: $29.55 per share

- 2019-04: $31.08 per share

- 2019-05: $34.79 per share

- 2019-06: $36.06 per share

- 2019-07: $36.19 per share

- 2019-08: $40.86 per share

- 2019-09: $43.58 per share

- 2019-10: $43.76 per share

- 2019-11: $43.64 per share

- 2019-12: $43.40 per share

- 2020-01: $44.14 per share

- 2020-02: $34.74 per share

- 2020-03: $19.97 per share

- 2020-04: $27.31 per share

- 2020-05: $25.89 per share

- 2020-06: $22.57 per share

- 2020-07: $21.12 per share

- 2020-08: $27.56 per share

- 2020-09: $26.45 per share

- 2020-10: $27.74 per share

- 2020-11: $35.00 per share

- 2020-12: $38.48 per share

- 2021-01: $34.29 per share

- 2021-02: $37.12 per share

- 2021-03: $37.78 per share

- 2021-04: $38.87 per share

- 2021-05: $37.35 per share

- 2021-06: $37.25 per share

- 2021-07: $35.13 per share

- 2021-08: $34.79 per share

- 2021-09: $32.86 per share

- 2021-10: $36.48 per share

- 2021-11: $33.40 per share

- 2021-12: $36.85 per share

- 2022-01: $34.29 per share

- 2022-02: $36.96 per share

- 2022-03: $37.60 per share

- 2022-04: $36.25 per share

- 2022-05: $34.47 per share

- 2022-06: $30.63 per share

- 2022-07: $33.40 per share

- 2022-08: $35.71 per share

- 2022-09: $31.20 per share

- 2022-10: $36.50 per share

- 2022-11: $41.60 per share

- 2022-12: $41.34 per share

- 2023-01: $44.53 per share

- 2023-02: $36.80 per share

- 2023-03: $35.80 per share

- 2023-04: $34.70 per share

- 2023-05: $39.48 per share

- 2023-06: $43.05 per share

- 2023-07: $40.37 per share

- 2023-08: $37.18 per share

- 2023-09: $34.70 per share

- 2023-10: $26.93 per share

- 2023-11: $28.01 per share

- 2023-12: $28.10 per share

- 2024-01: $29.08 per share

- 2024-02: $30.33 per share

- 2024-03: $32.52 per share

- 2024-04: $31.51 per share

- 2024-05: $32.15 per share

- 2024-06: $34.02 per share

- 2024-07: $34.27 per share

- 2024-08: $36.63 per share

- 2024-09: $38.73 per share

- 2024-10: $37.83 per share

- 2024-11: $40.69 per share

- 2024-12: $37.31 per share

- 2025-01: $38.91 per share

- 2025-02: $37.05 per share

- 2025-03: $34.52 per share

- 2025-04: $33.43 per share

- 2025-05: $40.50 per share

- 2025-06: $41.87 per share

- 2025-07: $42.56 per share

- 2025-08: $39.11 per share

- 2025-09: $38.40 per share

- 2025-10: $37.88 per share

- 2025-11: $37.17 per share

- 2025-12: $36.86 per share

- 2026-01: $38.49 per share

- 2026-02: $41.85 per share

- 2026-03: $40.54 per share

- 2026-04: $45.69 per share

- 2026-05: $53.38 per share

- 2026-06: $56.90 per share

- 2026-07: $56.97 per share

- 2026-08: $56.31 per share

- 2026-09: $53.55 per share

- 2026-10: $55.04 per share

## Annual estimated value (USD per share)

- FY2016: low $6.45 per share, central $7.33 per share, high $8.52 per share

- FY2017: low $7.51 per share, central $8.54 per share, high $9.92 per share

- FY2018: low $10.16 per share, central $11.56 per share, high $13.43 per share

- FY2019: low $12.57 per share, central $14.31 per share, high $16.62 per share

- FY2020: low $16.41 per share, central $17.78 per share, high $19.61 per share

- FY2021: low $13.98 per share, central $15.75 per share, high $18.11 per share

- FY2022: low $15.49 per share, central $17.60 per share, high $20.40 per share

- FY2023: low $24.24 per share, central $26.69 per share, high $29.94 per share

- FY2024: low $12.49 per share, central $14.02 per share, high $16.06 per share

- FY2025: low $14.75 per share, central $16.64 per share, high $19.17 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1584509/000158450925000219/cik0-20251003.htm); period 2025-10-03, filed 2025-11-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.