Aramark Plans Quarterly Dividend of $0.10 (NYSE:ARMK)

Aramark (NYSE:ARMK) declared a quarterly dividend on Monday, April 29th, NASDAQ reports. Investors of record on Monday, May 13th will be paid a dividend of 0.095 per share on Tuesday, May 28th. This represents a $0.38 dividend on an annualized basis and a yield of 1.17%. The ex-dividend date is Friday, May 10th.

Aramark has decreased its dividend by an average of 1.2% annually over the last three years. Aramark has a dividend payout ratio of 19.7% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Aramark to earn $1.97 per share next year, which means the company should continue to be able to cover its $0.38 annual dividend with an expected future payout ratio of 19.3%.

Aramark Price Performance

ARMK opened at $32.45 on Tuesday. The stock’s 50 day moving average price is $31.59 and its 200-day moving average price is $29.34. Aramark has a 52-week low of $23.95 and a 52-week high of $33.04. The stock has a market capitalization of $8.52 billion, a PE ratio of 13.58, a price-to-earnings-growth ratio of 1.30 and a beta of 1.48. The company has a debt-to-equity ratio of 2.08, a quick ratio of 1.12 and a current ratio of 1.27.

Aramark (NYSE:ARMK) last announced its quarterly earnings results on Tuesday, February 6th. The company reported $0.41 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.36 by $0.05. The company had revenue of $4.41 billion for the quarter, compared to analysts’ expectations of $4.29 billion. Aramark had a net margin of 3.37% and a return on equity of 13.45%. Aramark’s quarterly revenue was up 12.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.41 earnings per share. On average, equities research analysts predict that Aramark will post 1.56 EPS for the current year.

Wall Street Analysts Forecast Growth

ARMK has been the subject of a number of analyst reports. Morgan Stanley raised their price objective on Aramark from $28.00 to $30.00 and gave the company an “equal weight” rating in a research report on Wednesday, February 7th. Truist Financial upped their price target on shares of Aramark from $35.00 to $37.00 and gave the stock a “buy” rating in a research note on Wednesday, March 20th. Royal Bank of Canada reaffirmed a “sector perform” rating and issued a $33.00 target price on shares of Aramark in a report on Wednesday, February 7th. Finally, The Goldman Sachs Group began coverage on shares of Aramark in a report on Wednesday, January 17th. They set a “buy” rating and a $33.00 price target on the stock. One research analyst has rated the stock with a sell rating, three have given a hold rating and ten have given a buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $33.04.

Aramark Company Profile

Aramark provides food and facilities services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally. It operates through two segments, Food and Support Services United States, and Food and Support Services International. The company offers food-related managed services, including dining, catering, food service management, and convenience-oriented retail services; non-clinical food and food-related support services, such as patient food and nutrition, retail food, environmental services, and procurement services; and plant operations and maintenance, custodial/housekeeping, energy management, grounds keeping, and capital project management services.