Aramark Stock Hits All-Time High as Adjusted Profit Tops Forecasts | Global News Avenue

Aramark stock (ARMKShares hit a record high on Monday as the supplier of food, beverages and other services to sports and entertainment venues posted better-than-expected adjusted profits as sales grew. It also raised its dividend and announced a new stock offering repurchase plan.

The company reported fourth-quarter adjusted Earnings per share (EPS) $0.54, a penny above the consensus estimate of analysts polled by Visible Alpha. Revenue rose 5% year over year to $4.42 billion, slightly below expectations.

U.S. sales increased 4% to $3.18 billion, and international sales increased 9% to $1.24 billion.

Aramark said the gains were “primarily driven by strong underlying business volumes in both segments and price normalization on favorable inflation trends, particularly in education.”

Aramark announces dividend increase and $500 million buyback

The company added that it would increase its quarterly dividend to $0.105 from $0.095 and would launch a $500 million share repurchase program.

Chief Executive Officer (CEO) John Zillmer said he was proud of the achievements in fiscal 2024 and believed “we have tremendous room to grow in our business.”

Aramark expects fiscal year 2025 organic revenue Growth was 7.5% to 9.5%, and adjusted earnings per share jumped 23% to 28%.

Aramark shares rose 2.5% hourly to $40.09 after opening Monday, after hitting a record $42.04. They are up about 42% so far this year.