Aramark Announces Quarterly Dividend of $0.12 (NYSE:ARMK)

Key Points

• Aramark declared a quarterly dividend of $0.12 per share, payable September 9 to shareholders of record on August 19. The annualized dividend is $0.48, with an indicated yield of approximately 0.8%.
• The dividend appears well covered, with a 21.1% payout ratio and analysts expecting future earnings of $2.65 per share, implying an estimated future payout ratio of 18.1%.
• Aramark recently exceeded quarterly earnings and revenue expectations, reporting $0.49 EPS and $4.91 billion in revenue, while analysts maintain a “Moderate Buy” consensus and an average price target of $60.62.

Aramark (NYSE:ARMK - Get Free Report) declared a quarterly dividend on Wednesday, August 5th. Stockholders of record on Wednesday, August 19th will be given a dividend of 0.12 per share on Wednesday, September 9th. This represents a c) dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Wednesday, August 19th.

Aramark has decreased its dividend payment by an average of 0.0%annually over the last three years and has raised its dividend every year for the last 1 years. Aramark has a payout ratio of 21.1% meaning its dividend is sufficiently covered by earnings. Analysts expect Aramark to earn $2.65 per share next year, which means the company should continue to be able to cover its $0.48 annual dividend with an expected future payout ratio of 18.1%.

Aramark Price Performance

Shares of Aramark stock traded up $0.62 during trading on Wednesday, hitting $56.84. The stock had a trading volume of 2,147,443 shares, compared to its average volume of 2,857,572. The firm has a market cap of $14.95 billion, a price-to-earnings ratio of 42.42, a P/E/G ratio of 1.08 and a beta of 1.12. Aramark has a 12 month low of $35.07 and a 12 month high of $58.68. The business's 50-day moving average is $55.50 and its 200 day moving average is $47.14. The company has a current ratio of 1.21, a quick ratio of 1.07 and a debt-to-equity ratio of 1.85.

Aramark (NYSE:ARMK - Get Free Report) last posted its quarterly earnings data on Tuesday, May 12th. The company reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.47 by $0.02. The company had revenue of $4.91 billion during the quarter, compared to analyst estimates of $4.75 billion. Aramark had a return on equity of 17.05% and a net margin of 1.84%.The firm's quarterly revenue was up 14.7% on a year-over-year basis. During the same quarter last year, the company earned $0.35 earnings per share. Aramark has set its FY 2026 guidance at 2.180-2.280 EPS. As a group, sell-side analysts anticipate that Aramark will post 2.24 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the company. The Goldman Sachs Group reiterated a "buy" rating and set a $51.00 price target on shares of Aramark in a research report on Wednesday, May 13th. Truist Financial raised their target price on shares of Aramark from $58.00 to $70.00 and gave the company a "buy" rating in a research note on Monday, July 27th. Morgan Stanley lifted their target price on shares of Aramark from $45.00 to $50.00 and gave the company an "equal weight" rating in a research report on Wednesday, May 13th. Royal Bank Of Canada increased their price target on shares of Aramark from $47.00 to $55.00 and gave the stock an "outperform" rating in a report on Thursday, May 14th. Finally, Stifel Nicolaus raised their price objective on shares of Aramark from $47.00 to $54.00 and gave the company a "buy" rating in a research report on Wednesday, May 13th. Eleven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $60.62.

Aramark Company Profile

Aramark NYSE: ARMK is a global provider of food services, facilities management and uniform solutions, serving clients across a wide array of industries including education, healthcare, business and government. The company operates through three primary segments: Food and Support Services, Uniform and Career Apparel, and Facility Services, delivering integrated solutions designed to enhance guest experiences, improve operational efficiencies and maintain safe, clean environments. Aramark's offerings include corporate dining, patient and senior nutrition, campus dining, sports and entertainment concessions, custodial services, technical maintenance and industrial laundry.

Founded in 1959 and headquartered in Philadelphia, Pennsylvania, Aramark has expanded its footprint to more than 20 countries, with a strong presence in North America, Latin America, Europe and Asia.

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