ARMK - Embedded Expectations Analysis - 2020 02 18
ï€ Aramark (ARMK:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 16.5x Uniform P/E, implying bearish expectations for the firm, but management is confident about their marketing initiatives, investment in sales resources, and ability to create long-term value, suggesting market expectations are too pessimistic, and equity upside is likely warranted for ARMKï€ Specifically, management is confident that their facilities segment has stood up as a standalone business and that they are focusing on new marketing initiatives to improve the meal take up by freshmen and re-adoption by upperclassmen. Moreover, they are confident that they support investment to increase sales resources across all business lines, they maintain their outlook for fiscal 2020, and that they can create long-term value for the company
Aramark is a provider of food, facilities and uniform services. The company manages its Food and Support Services (FSS) business in segments split between its United States and International operations. The company's FSS segments manage a number of interrelated services-including food, hospitality, procurement and facility services-for school districts, colleges and universities, healthcare facilities, businesses, sports, entertainment and recreational venues, conference and convention centers, national and state parks and correctional institutions. The company's Uniform and Career Apparel segment provides employee uniform solution, including design, sourcing and manufacturing, delivery, cleaning and maintenance.
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