Aramark shares reach record $60.19 amid strong earnings

Aramark shares climbed to a record $60.19 on Wednesday, extending gains following the company’s latest earnings report and upwardly revised full-year guidance.

The food services provider reported adjusted earnings per share of 58 cents for the quarter, exceeding the 52-cent consensus estimate among analysts surveyed by Refinitiv. Revenue rose 6.2% year-over-year to $2.9 billion, driven by higher demand in its core business segments.

Management raised its full-year adjusted EPS guidance to a range of $2.30 to $2.40, up from the prior outlook of $2.15 to $2.30. The company cited improved operational efficiency and sustained recovery in on-site dining services as key drivers of the upward revision.

Aramark’s stock has gained approximately 15% since the start of the year, outperforming the broader S&P 500 index, which is up about 8% over the same period. The company’s shares have also benefited from increased investor confidence in the food services sector amid easing inflation pressures.

Analysts at Jefferies maintained their buy rating on the stock, with a price target of $65, citing Aramark’s strong market position and resilient cash flow generation.

The record intraday high of $60.19 marks a new peak for Aramark, which has seen steady appreciation since its initial public offering in 2013.