Aramark (ARMK)
NYSEConsumer DiscretionarySpecialty Business ServicesSnapshot 2026-09-04
$56.78-0.87%
Close 2026-09-04 · 1-day change
NYSEConsumer DiscretionarySpecialty Business ServicesSnapshot 2026-09-04
QuarterlyIQ Insights · ARMK
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within consumer discretionary on a research-validated quality screen. As of 2026-09-04.
The screen ranks ARMK against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Consumer Discretionary names rated neutral grew net income 45% of the time over the next year (vs 59% for the rest of the cohort, n=6943).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue broad-based net new business and base business expansion to achieve organic revenue growth of 9% to 10% in fiscal 2026.
Stated as a priority in 3 of last 3 quarters. Management raised fiscal 2026 Organic Revenue growth outlook from +7% to +9% at 2025-Q4 to +9% to +10% at 2026-Q2. Revenue grew approximately 9% year-over-year to about $5.06 billion in 2026-Q2. The trajectory is delivering consistent growth aligned with management's stated targets.
“Weve once again raised our Organic Revenue growth expectations for fiscal 2026.”
“Updated fiscal 2026 Outlook to the high end of our previously stated expectations for Organic Revenue growth.”
“Anticipates full-year Organic Revenue growth of +7% to +9%.”
Achieve adjusted operating income growth of 12% to 17% with margin expansion driven by supply chain efficiencies and productivity gains.
Stated as a priority in 3 of last 3 quarters. Adjusted Operating Income guidance for fiscal 2026 remains at +12% to +17% growth. Operating Income increased 18% year-over-year to $216 million in 2026-Q2, reflecting supply chain efficiencies and productivity gains. The trajectory is delivering consistent margin expansion aligned with management's guidance.
Continue disciplined capital structure management to keep leverage ratio below 3.0x by end of fiscal 2026.
Stated as a priority in 3 of last 3 quarters. Management targets leverage ratio under 3.0x by fiscal 2026 year-end, down from 3.25x in 2025. The company has proactively repaid debt including $100 million post 2026-Q2. The trajectory shows disciplined capital management consistent with stated goals.
“Company remains committed to a leverage ratio below 3x by the end of fiscal 2026.”
Grow Aramark Nexus by scaling premium hospitality services at hyperscale AI data centers and securing multi-year engagements.
Newly stated in 2026-Q1 and reiterated in 2026-Q2. Aramark launched Aramark Nexus platform targeting hyperscale AI data centers with multi-year agreements and is scaling operations at multiple sites. While financial impact is emerging, management emphasizes this as a key growth initiative with early operational progress.
“Launched Aramark Nexus, delivering hospitality services for hyperscale AI data centers; multi-year engagement underway.”
Sustain industry-leading client retention near 98% and achieve net new business growth of 4% to 5% of prior year revenue.
Stated as a priority in 3 of last 3 quarters. Management reports client retention near 98% and net new business growth outpacing the 4% to 5% target of prior year revenue. These operational metrics support sustained growth momentum consistent with management's stated objectives.
“Industry-leading client retention at record levels of approximately 98%.”
Over the trailing year it converted -3.22x of net income into operating cash flow. Historically, Consumer Discretionary names rated fragile grew net income 40% of the time over the next year (vs 53% for the rest of the cohort, n=3652).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
10 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Consumer Discretionary names rated neutral grew net income 48% of the time over the next year (vs 53% for the rest of the cohort, n=2538).
Not investment advice. As of 2026-09-04.
“Adjusted Operating Income (AOI) growth of +12% to +17%; margin expansion driven by supply chain efficiencies.”
“AOI growth would have been approximately +11% without calendar shift; leveraging technology and cost discipline.”
“Adjusted Operating Income growth of +12% to +17% expected for fiscal 2026.”
“Leverage expected to be under 3.0x by the end of fiscal 2026.”
“Leverage Ratio target under 3x for fiscal 2026 reaffirmed.”
“Entry into hyperscale AI data center market with launch of Aramark Nexus and new multi-year engagement.”
“Unprecedented client retention; net new business currently outperforming run-rate to achieve full year growth objectives.”
“Net New Business target of 4% to 5% of prior year revenue.”